Side hustlers and business owners have unique needs when it comes to setting up a business checking account.
And for years, most banks made the bulk of their fees on business products - including business checking accounts.
So, it's historically been frustrating as a side hustler or business owner to find a checking account because, unlike personal accounts which have lots of free checking account options, businesses typically didn't have that available.
But technology is changing that. And more banks are starting to offer great business checking accounts with low or reasonable fees.
The Best Business Checking Account Options
Based on the criteria we share below, here are our choices for the best business checking accounts available. Some of these accounts are basically free, while others do require some minimum balances and/or other requirements to waive the monthly fees.
1. US Bank Silver Business Checking
The US Bank Silver Business Checking is one of the best deals in business checking accounts for side hustlers and small businesses. This account has $0 monthly maintenance fees, online banking, mobile check deposit, online bill pay, and more.
The big thing about this account is that there are limits. But, most small businesses and side hustlers won't hit these limits. The limits are:
- 150 transactions per statement cycle (this includes deposits, transfers, etc)
- 25 free cash deposits per statement cycle (so don't go to the bank everyday!)
- They do charge $5 for paper statements (who gets these anymore?)
Why I Like It: A pretty much free business checking account option that also has the ability to connect to a business money market (which is rare).
Learn more about US Bank Silver Business Checking.
|
US Bank Silver Business Checking |
|
|---|---|
|
Min Opening Deposit |
$0 |
|
Min Balance Requirement |
$0 |
|
Monthly Fee |
$0 |
|
Earns Interest |
No |
|
ATM Access |
4,800 ATMs Nationwide |
|
Availability |
28 States |
|
Promotions |
None |
2. Radius Bank Tailored Checking
The Radius Bank Tailored Business Checking Account is another great solution for side hustlers and small business owners. This account does have a small monthly fee, but that can be waived with a $5,000 minimum balance.
The real plus with this account is that it pays interest! You can earn 0.75% APY on balances over $5,000. This rate is current as of April 26, 2019. It's nearly unheard of to have a business checking account that pays interest.
This account also has the usual features you'd expect in a top notch business checking account:
- Online banking
- Free ATM withdrawals
- Free online bill pay
- Mobile check deposits
Why I Like It: A business checking account option that can earn interest.
Learn more about Radius Bank Tailored Checking here.
|
Radius Bank Tailored Checking |
|
|---|---|
|
Min Opening Deposit |
$100 |
|
Min Balance Requirement |
$0 |
|
Monthly Fee |
$10* (waived when requirements met) |
|
Earns Interest |
0.75% APY |
|
ATM Access |
Unlimited Nationwide |
|
Availability |
Nationwide |
|
Promotions |
None |
3. Chase Total Business Checking®
The Chase Total Business Checking® is one of the more popular business checking account options because Chase has a huge number of branches and great service. It isn't truly free unless you meet the minimum monthly requirements to make it so, but we list it as a top business checking account because it's available nationwide, has branches nearly everywhere, and is one of the most robust banking products out there currently. Plus, the minimum requirements are super easy to meet - check it out.
And right now, you can get up to a $200 bonus when you open an account with qualifying activities. That's awesome!
Chase Total Business Checking® has a $12 per month fee when you're enrolled in paperless statements (or $15 if you're not) that's easily waived if you simply do the following:
- Keep a minimum daily balance of $1,500 or more in your account
Why I Like It: A great account opening bonus, with one of the largest, most well known banks in the United States.
Learn more about Chase Total Business Checking® here.
|
Chase Total Business Checking® |
|
|---|---|
|
Min Opening Deposit |
$25 |
|
Min Balance Requirement |
$0 |
|
Monthly Fee |
$12* (waived when requirements met) |
|
Earns Interest |
No |
|
ATM Access |
16,000 ATMs nationwide |
|
Availability |
AL, AZ, CA, CO, CT, DC, DE, FL, GA, IA, ID, IL, IN, KS, KY, LA, MA, MD, ME, MI, MN, MO, NC, NE, NH, NJ, NV, NY, OH, OK, OR, PA, RI, SC, TN, TX, UT, VA, VT, WA, WI, WV |
|
Promotions |
Up to a $200 bonus |
Get up to a $200 bonus!
4. BBVA ClearConnect for Business
BBVA ClearConnect For Business Checking is a lesser known bank nationwide, but they do offer nationwide free business checking! However, where BBVA really shines is in it's access to ATMs.
Furthermore, there is no real requirements to maintain free business checking at BBVA. They do charge for paper statements (and it's opt-out), but once you opt-out, you don't have to worry about making enough direct deposits or having a minimum balance.
And if you're a cash-heavy business, do realize that they limit cash processing on their free account to $5,000 per month, and they limit brach transactions each month.
But online banking is easy, free, and they have mobile check deposit!
Why I Like It: Easy online banking without worrying about minimums.
Learn more about BBVA ClearConnect For Business Checking here.
|
BBVA ClearConnect For Business Checking |
|
|---|---|
|
Min Opening Deposit |
$100 |
|
Min Balance Requirement |
$0 |
|
Monthly Fee |
$0 |
|
Earns Interest |
No |
|
ATM Access |
55,000 ATMs nationwide |
|
Availability |
Nationwide |
|
Promotions |
None |
5. AXOS Basic Business Checking
AXOS is an online bank that focuses on simple business banking online. It's free, but it does have some higher requirements compared to other banks.
With AXOS, you get no monthly maintenance fees, a low minimum deposit requirement, and unlimited domestic ATM fee reimbursements.
Their free tier comes with 200 transactions (deposits, transfers, ACH, etc) per month.
Why I Like It: Free mobile business banking.
Learn more about AXOS Basic Business Checking.
|
AXOS Basic Business Checking |
|
|---|---|
|
Min Opening Deposit |
$1,000 |
|
Min Balance Requirement |
$0 |
|
Monthly Fee |
$0 |
|
Earns Interest |
No |
|
ATM Access |
Unlimited ATM Free Reimbursement |
|
Availability |
Nationwide |
|
Promotions |
None |
6. ALPHA
ALPHA is a startup that is focused on mission-driven banking for soloprenuers and small businesses. This completely online/mobile bank is currently waitlisting new users, but it looks really promising.
They are very mobile friendly, no fees, and they pay interest on your money! That's awesome for a business bank account.
Why I Like It: Interest-bearing business checking.
Learn more about ALPHA Money here.
|
ALPHA Business Checking |
|
|---|---|
|
Min Opening Deposit |
$0 |
|
Min Balance Requirement |
$0 |
|
Monthly Fee |
$0 |
|
Earns Interest |
TBD |
|
ATM Access |
Unlimited |
|
Availability |
Nationwide |
|
Promotions |
None |
7. Navy Federal Business Checking
Navy Federal Credit Union Business Checking is one of the best business checking products available, if you qualify to be a member of Navy Federal Credit Union.
This account is a basic business checking account with online banking, mobile check deposits and more.
But best of all, it pays interest (just a small amount, but that's something). As of April 26, 2019, the basic business checking earns 0.05% APY. You can get up to 0.45% APY on their Premium Business Checking.
NFCU Basic Business Checking is limited to just 30 transactions per month. That's low. If you need more, you might consider the Premium Business Checking. It does have a $20 per month fee, but that fee is waived with a $5,000 minimum balance.
Why I Like It: Interest bearing business checking.
Learn more about NFCU Basic Business Checking.
|
Navy Federal Basic Business Checking |
|
|---|---|
|
Min Opening Deposit |
$0 |
|
Min Balance Requirement |
$0 |
|
Monthly Fee |
$0 |
|
Earns Interest |
0.05% APY |
|
ATM Access |
30,000 ATM via CO-OP Network |
|
Availability |
Nationwide |
|
Promotions |
None |
8. Huntington Community Business Checking
Huntington Community Business Checking is a well-known brick and mortar bank throughout the midwest and they offer a great free business checking product.
They offer free business checking with less than 150 transactions per month (which should work for most side hustlers and small businesses). They also have no minimum balance requirements and free online statements.
Why I Like It: Free business checking.
Learn more about Huntington Community Business Checking.
|
Huntington Community Business Checking |
|
|---|---|
|
Min Opening Deposit |
$0 |
|
Min Balance Requirement |
$0 |
|
Monthly Fee |
$0 |
|
Earns Interest |
None |
|
ATM Access |
1,800 ATMs |
|
Availability |
8 Midwest States |
|
Promotions |
None |
9. Comerica Basic Business Checking
Comerica is a large bank that isn't as well known for it's business products, but it does have a great free small business checking product.
This account has online banking, a debit card, and up to 75 transactions per month. This should be enough for most side hustlers or solopreneurs. You can also only deposit up to $2,500 on the free tier.
Why I Like It: Large bank with free business checking.
Learn more about Comerica Basic Business Checking.
|
Comerica Basic Business Checking |
|
|---|---|
|
Min Opening Deposit |
$50 |
|
Min Balance Requirement |
$0 |
|
Monthly Fee |
$0 |
|
Earns Interest |
None |
|
ATM Access |
40,000 Free ATMs |
|
Availability |
Nationwide |
|
Promotions |
None |
Why A Business Checking Account vs. A Personal Checking Account?
When you're running a business - even just as a side hustle - it's important to keep your business finances separate from your personal finances. For many people starting out, that can be as simple as having a PayPal account. But as your business grows, you start receiving check and ACH payments, you simply need more.
You should keep your business accounts separate from your personal accounts for a variety of reasons. First, it's simplicity. By keeping all your business stuff in one place, you can easily know what you made, what you spent, and what's left.
Second, by mixing personal and business accounts, you can create bookkeeping, accounting, and tax headaches for yourself come tax time.
Third, you can also run into major liability issues - opening yourself up for personal liability if anything should happen to your business. If you're an LLC, S-Corp, or C-Corp, you definitely need to have a separate business bank account to maintain the liability protections a business offers.
Finally, if your business fails and you need to declare bankruptcy, your personal assets become open to being used for your debts because there's no way for a judge to separate the two.
The Process To Setup A Business Checking Account
Why most people hesitate to open a business checking account is because of the costs and the hassle to open one up.
The process to open a business checking account has traditionally be tedious - you need to bring documents, meet with a banker in person, and it takes time. However, technology is changing that and some companies are doing it all online (for example, Radius Bank's Tailored Checking Account is 100% online).
To open a business checking account, you'll need the following:
- Your business employer identification number (EIN) - if you're a sole-proprietor, your SSN will work
- Business documents: Articles of Incorporation, Articles of Organization, charter
- Government issued ID
If you're a partnership or LLC with more than one member, you'll also need to have each member present to open the account.
What You Need In A Business Checking Account
Side hustlers and business owners have unique needs for their checking account. They also might not have a job yet (for direct deposit), or have other accounts at the bank.
As such, they have unique requirements that we wanted to share, so that you can see how we based our criteria for the best business checking account options.
In order to be one of the best business checking accounts, we put the following criteria in place:
- No Monthly Maintenance Fees: This is a big one. All of the accounts we consider must not charge a monthly maintenance fee or they must waive it in a really easy way.
- No Or Low Monthly Balance Required: You shouldn't have to have huge amounts of money to waive fees or qualify for a business checking account. We only look for banks that don't have a monthly minimum balance requirement or if they do, it's incredibly low.
- Transaction Count: Most business banks charge you based on your number of transactions each month. We want to make sure each account listed has a good amount of transactions available so you don't get charged.
- Awesome Online Access: The best business checking accounts will also have awesome online access, a great app or mobile site, and be accessible anywhere.
- No ATM Fees: Today's entrepreneurs are on the move. They should be able to access their money for free, where ever they are.
Final Thoughts
Hopefully you can see that there are good options for free business checking.
You don't have to pay fees to have a business checking account - you just need to open your account at a good bank.
The post The Best Business Checking Accounts For Side Hustlers appeared first on The College Investor.
from The College Investor
Side hustlers and business owners have unique needs when it comes to setting up a business checking account.
And for years, most banks made the bulk of their fees on business products - including business checking accounts.
So, it's historically been frustrating as a side hustler or business owner to find a checking account because, unlike personal accounts which have lots of free checking account options, businesses typically didn't have that available.
But technology is changing that. And more banks are starting to offer great business checking accounts with low or reasonable fees.
The Best Business Checking Account Options
Based on the criteria we share below, here are our choices for the best business checking accounts available. Some of these accounts are basically free, while others do require some minimum balances and/or other requirements to waive the monthly fees.
1. US Bank Silver Business Checking
The US Bank Silver Business Checking is one of the best deals in business checking accounts for side hustlers and small businesses. This account has $0 monthly maintenance fees, online banking, mobile check deposit, online bill pay, and more.
The big thing about this account is that there are limits. But, most small businesses and side hustlers won't hit these limits. The limits are:
- 150 transactions per statement cycle (this includes deposits, transfers, etc)
- 25 free cash deposits per statement cycle (so don't go to the bank everyday!)
- They do charge $5 for paper statements (who gets these anymore?)
Why I Like It: A pretty much free business checking account option that also has the ability to connect to a business money market (which is rare).
Learn more about US Bank Silver Business Checking.
|
US Bank Silver Business Checking |
|
|---|---|
|
Min Opening Deposit |
$0 |
|
Min Balance Requirement |
$0 |
|
Monthly Fee |
$0 |
|
Earns Interest |
No |
|
ATM Access |
4,800 ATMs Nationwide |
|
Availability |
28 States |
|
Promotions |
None |
2. Radius Bank Tailored Checking
The Radius Bank Tailored Business Checking Account is another great solution for side hustlers and small business owners. This account does have a small monthly fee, but that can be waived with a $5,000 minimum balance.
The real plus with this account is that it pays interest! You can earn 0.75% APY on balances over $5,000. This rate is current as of April 26, 2019. It's nearly unheard of to have a business checking account that pays interest.
This account also has the usual features you'd expect in a top notch business checking account:
- Online banking
- Free ATM withdrawals
- Free online bill pay
- Mobile check deposits
Why I Like It: A business checking account option that can earn interest.
Learn more about Radius Bank Tailored Checking here.
|
Radius Bank Tailored Checking |
|
|---|---|
|
Min Opening Deposit |
$100 |
|
Min Balance Requirement |
$0 |
|
Monthly Fee |
$10* (waived when requirements met) |
|
Earns Interest |
0.75% APY |
|
ATM Access |
Unlimited Nationwide |
|
Availability |
Nationwide |
|
Promotions |
None |
3. Chase Total Business Checking®
The Chase Total Business Checking® is one of the more popular business checking account options because Chase has a huge number of branches and great service. It isn't truly free unless you meet the minimum monthly requirements to make it so, but we list it as a top business checking account because it's available nationwide, has branches nearly everywhere, and is one of the most robust banking products out there currently. Plus, the minimum requirements are super easy to meet - check it out.
And right now, you can get up to a $200 bonus when you open an account with qualifying activities. That's awesome!
Chase Total Business Checking® has a $12 per month fee when you're enrolled in paperless statements (or $15 if you're not) that's easily waived if you simply do the following:
- Keep a minimum daily balance of $1,500 or more in your account
Why I Like It: A great account opening bonus, with one of the largest, most well known banks in the United States.
Learn more about Chase Total Business Checking® here.
|
Chase Total Business Checking® |
|
|---|---|
|
Min Opening Deposit |
$25 |
|
Min Balance Requirement |
$0 |
|
Monthly Fee |
$12* (waived when requirements met) |
|
Earns Interest |
No |
|
ATM Access |
16,000 ATMs nationwide |
|
Availability |
AL, AZ, CA, CO, CT, DC, DE, FL, GA, IA, ID, IL, IN, KS, KY, LA, MA, MD, ME, MI, MN, MO, NC, NE, NH, NJ, NV, NY, OH, OK, OR, PA, RI, SC, TN, TX, UT, VA, VT, WA, WI, WV |
|
Promotions |
Up to a $200 bonus |
Get up to a $200 bonus!
4. BBVA ClearConnect for Business
BBVA ClearConnect For Business Checking is a lesser known bank nationwide, but they do offer nationwide free business checking! However, where BBVA really shines is in it's access to ATMs.
Furthermore, there is no real requirements to maintain free business checking at BBVA. They do charge for paper statements (and it's opt-out), but once you opt-out, you don't have to worry about making enough direct deposits or having a minimum balance.
And if you're a cash-heavy business, do realize that they limit cash processing on their free account to $5,000 per month, and they limit brach transactions each month.
But online banking is easy, free, and they have mobile check deposit!
Why I Like It: Easy online banking without worrying about minimums.
Learn more about BBVA ClearConnect For Business Checking here.
|
BBVA ClearConnect For Business Checking |
|
|---|---|
|
Min Opening Deposit |
$100 |
|
Min Balance Requirement |
$0 |
|
Monthly Fee |
$0 |
|
Earns Interest |
No |
|
ATM Access |
55,000 ATMs nationwide |
|
Availability |
Nationwide |
|
Promotions |
None |
5. AXOS Basic Business Checking
AXOS is an online bank that focuses on simple business banking online. It's free, but it does have some higher requirements compared to other banks.
With AXOS, you get no monthly maintenance fees, a low minimum deposit requirement, and unlimited domestic ATM fee reimbursements.
Their free tier comes with 200 transactions (deposits, transfers, ACH, etc) per month.
Why I Like It: Free mobile business banking.
Learn more about AXOS Basic Business Checking.
|
AXOS Basic Business Checking |
|
|---|---|
|
Min Opening Deposit |
$1,000 |
|
Min Balance Requirement |
$0 |
|
Monthly Fee |
$0 |
|
Earns Interest |
No |
|
ATM Access |
Unlimited ATM Free Reimbursement |
|
Availability |
Nationwide |
|
Promotions |
None |
6. ALPHA
ALPHA is a startup that is focused on mission-driven banking for soloprenuers and small businesses. This completely online/mobile bank is currently waitlisting new users, but it looks really promising.
They are very mobile friendly, no fees, and they pay interest on your money! That's awesome for a business bank account.
Why I Like It: Interest-bearing business checking.
Learn more about ALPHA Money here.
|
ALPHA Business Checking |
|
|---|---|
|
Min Opening Deposit |
$0 |
|
Min Balance Requirement |
$0 |
|
Monthly Fee |
$0 |
|
Earns Interest |
TBD |
|
ATM Access |
Unlimited |
|
Availability |
Nationwide |
|
Promotions |
None |
7. Navy Federal Business Checking
Navy Federal Credit Union Business Checking is one of the best business checking products available, if you qualify to be a member of Navy Federal Credit Union.
This account is a basic business checking account with online banking, mobile check deposits and more.
But best of all, it pays interest (just a small amount, but that's something). As of April 26, 2019, the basic business checking earns 0.05% APY. You can get up to 0.45% APY on their Premium Business Checking.
NFCU Basic Business Checking is limited to just 30 transactions per month. That's low. If you need more, you might consider the Premium Business Checking. It does have a $20 per month fee, but that fee is waived with a $5,000 minimum balance.
Why I Like It: Interest bearing business checking.
Learn more about NFCU Basic Business Checking.
|
Navy Federal Basic Business Checking |
|
|---|---|
|
Min Opening Deposit |
$0 |
|
Min Balance Requirement |
$0 |
|
Monthly Fee |
$0 |
|
Earns Interest |
0.05% APY |
|
ATM Access |
30,000 ATM via CO-OP Network |
|
Availability |
Nationwide |
|
Promotions |
None |
8. Huntington Community Business Checking
Huntington Community Business Checking is a well-known brick and mortar bank throughout the midwest and they offer a great free business checking product.
They offer free business checking with less than 150 transactions per month (which should work for most side hustlers and small businesses). They also have no minimum balance requirements and free online statements.
Why I Like It: Free business checking.
Learn more about Huntington Community Business Checking.
|
Huntington Community Business Checking |
|
|---|---|
|
Min Opening Deposit |
$0 |
|
Min Balance Requirement |
$0 |
|
Monthly Fee |
$0 |
|
Earns Interest |
None |
|
ATM Access |
1,800 ATMs |
|
Availability |
8 Midwest States |
|
Promotions |
None |
9. Comerica Basic Business Checking
Comerica is a large bank that isn't as well known for it's business products, but it does have a great free small business checking product.
This account has online banking, a debit card, and up to 75 transactions per month. This should be enough for most side hustlers or solopreneurs. You can also only deposit up to $2,500 on the free tier.
Why I Like It: Large bank with free business checking.
Learn more about Comerica Basic Business Checking.
|
Comerica Basic Business Checking |
|
|---|---|
|
Min Opening Deposit |
$50 |
|
Min Balance Requirement |
$0 |
|
Monthly Fee |
$0 |
|
Earns Interest |
None |
|
ATM Access |
40,000 Free ATMs |
|
Availability |
Nationwide |
|
Promotions |
None |
Why A Business Checking Account vs. A Personal Checking Account?
When you're running a business - even just as a side hustle - it's important to keep your business finances separate from your personal finances. For many people starting out, that can be as simple as having a PayPal account. But as your business grows, you start receiving check and ACH payments, you simply need more.
You should keep your business accounts separate from your personal accounts for a variety of reasons. First, it's simplicity. By keeping all your business stuff in one place, you can easily know what you made, what you spent, and what's left.
Second, by mixing personal and business accounts, you can create bookkeeping, accounting, and tax headaches for yourself come tax time.
Third, you can also run into major liability issues - opening yourself up for personal liability if anything should happen to your business. If you're an LLC, S-Corp, or C-Corp, you definitely need to have a separate business bank account to maintain the liability protections a business offers.
Finally, if your business fails and you need to declare bankruptcy, your personal assets become open to being used for your debts because there's no way for a judge to separate the two.
The Process To Setup A Business Checking Account
Why most people hesitate to open a business checking account is because of the costs and the hassle to open one up.
The process to open a business checking account has traditionally be tedious - you need to bring documents, meet with a banker in person, and it takes time. However, technology is changing that and some companies are doing it all online (for example, Radius Bank's Tailored Checking Account is 100% online).
To open a business checking account, you'll need the following:
- Your business employer identification number (EIN) - if you're a sole-proprietor, your SSN will work
- Business documents: Articles of Incorporation, Articles of Organization, charter
- Government issued ID
If you're a partnership or LLC with more than one member, you'll also need to have each member present to open the account.
What You Need In A Business Checking Account
Side hustlers and business owners have unique needs for their checking account. They also might not have a job yet (for direct deposit), or have other accounts at the bank.
As such, they have unique requirements that we wanted to share, so that you can see how we based our criteria for the best business checking account options.
In order to be one of the best business checking accounts, we put the following criteria in place:
- No Monthly Maintenance Fees: This is a big one. All of the accounts we consider must not charge a monthly maintenance fee or they must waive it in a really easy way.
- No Or Low Monthly Balance Required: You shouldn't have to have huge amounts of money to waive fees or qualify for a business checking account. We only look for banks that don't have a monthly minimum balance requirement or if they do, it's incredibly low.
- Transaction Count: Most business banks charge you based on your number of transactions each month. We want to make sure each account listed has a good amount of transactions available so you don't get charged.
- Awesome Online Access: The best business checking accounts will also have awesome online access, a great app or mobile site, and be accessible anywhere.
- No ATM Fees: Today's entrepreneurs are on the move. They should be able to access their money for free, where ever they are.
Final Thoughts
Hopefully you can see that there are good options for free business checking.
You don't have to pay fees to have a business checking account - you just need to open your account at a good bank.
The post The Best Business Checking Accounts For Side Hustlers appeared first on The College Investor.
http://bit.ly/2IL9U7H April 29, 2019 at 10:15AM http://bit.ly/2IYtQmy
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