Oct. 2022's Top Picks For The Best Business Checking Accounts

Nov 11, 2023 By Triston Martin

One of the numerous obstacles business owners faces is finding the best financial arrangement for their company. This might be done entirely online, entirely at a physical branch, or somewhere in between. Creating a company bank account is often the first order of business for new entrepreneurs.

It is essential to keep your business and personal funds in different accounts, whether you are a lone entrepreneur or the manager of a small company. You can trust Forbes Advisor to help you select your company's most acceptable business checking account since they have already done the legwork.

Axos Basic Business Checking

As a business, Axos's checking account covers all the bases. Although Axos's ATM network is extensive, the company will reimburse you for any ATM costs incurred even if you use a machine from a different network. In addition, you must fulfill conditions to get a potential $200 cash incentive.

BlueVine Business Checking

To start using BlueVine, you won't need to pay any upfront fee or deposit. If you match the criteria, you can earn 1.50% APY on balances up to $100,000. The other accounts on our list don't provide any interest. Therefore this is what makes this one stand out. You can even use it to deposit cash, making it one of the few online business checking accounts available.

Citizens Bank Clearly Better Business Checking

Getting started with this account doesn't require any initial funding. Using your savings account or your available credit, you may prevent overdraft fees at Citizens Bank. Each time you use an ATM not owned by Citizens Bank, you will be charged $3 in addition to whatever the ATM owner may charge. If you often visit different regions of the United States, you may find it inconvenient to bank with Citizens Bank because of its limited branch network.

NBKC Business Checking

You have a lot of leeway with this account. Overdraft fees, monthly service fees, and minimum initial deposits are all waived. If you want to save money on domestic wire transfer costs, NBKC is a fantastic choice.

There will be no fees for domestic wire transfers coming into your institution and only a small charge for domestic wire transfers leaving your institution. The NBKC will refund you up to $12 monthly for ATM fees incurred while using a non-MoneyPass ATM.

How Do Business Checking Accounts Work?

A company is checking account functions similarly to a personal one. Generally speaking, both accounts allow you to make deposits and withdrawals, process ACH payments, issue checks, and use a debit card at stores and ATMs.

Money in a company checking account is used to pay business expenditures. In contrast, money in a personal checking account is used to cover personal expenses like a mortgage, a vehicle payment, or a utility bill. Another significant distinction is the higher costs associated with business bank accounts compared to personal checking accounts.

How Do Business Accounts Work?

There is a business checking account option available for any company. Various legal structures can create a business checking account, including limited liability companies (LLCs), sole proprietorships, corporations, and partnerships. Any organization can open a business checking account, be it a one-person consulting firm or a software giant with ten thousand employees.

What Are The Advantages of Opening a Business Checking Account?

A corporate checking account is a great way to keep your company's finances distinct from yours. A business checking account may help establish your company's legitimacy, streamline your accounting, and make tax time a breeze.

Having a company checking account also allows you to get a business credit card or line of credit, and it can protect your personal assets from any business-related legal actions or debt collection efforts.

Choosing The Right Commercial Banking Service

A business checking account is the cornerstone of your banking connection for your company. Its primary value is to lets you keep your professional and private finances distinct. Consider what you need from a business checking account beyond the APY and fees before deciding. To get the best business checking account, consider the following.

Fees

Since you'll be utilizing your company checking account to handle regular transactions, finding one with low or nonexistent fees is crucial. Pay close attention to the volume-based transaction costs, the out-of-network ATM fees, and the monthly maintenance fees.

Minimums

Some financial institutions may mandate a minimum deposit when opening a business checking account. For some accounts, you must meet a minimum balance or transaction threshold each statement cycle to avoid a monthly maintenance charge or receive the advertised annual percentage yield.

Bottom Line

In many ways, a business checking account serves as the cornerstone around which an enterprise might be built. You may use it to segregate your professional and private lives, simplify accounting and tax filing, and safeguard your assets in case of a company lawsuit or collection attempt.

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