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Business Bank Account for Small Businesses: An Effective Way of Managing Business Cash Flow

A business bank account makes it easier for you to manage the cash of your small business. It’s
highly recommended if you’ve just started a new business or are planning to set one up. An account
like that will let you keep the financial transactions separated from your personal dealings.
Choosing the right bank has its benefits as well. There are several banks to choose from. People can
opt for ‘online’ or physically contact banks for business accounts. Each bank varies in its expertise
and merits.

Before choosing your bank, you’ve to be certain about the type of your business – its size, its nature,
and most importantly the approximate transaction that you are gonna make using the account.
Once the owner is determined about the complexity and nature of his/her business, He/She can
jump into this section to pick the right bank account that they need.
You must consider the charges that they’ll deduct and the interests you’ll get annually while
selecting the best type of business bank account for you.

What Is a Business Checking Bank Account?

Let’s get some basic ideas about business checking bank accounts in the first place.
If you think that a business bank account is something of " Rocket Science" then I’d say you are taking
it too hard mate. Let’s get it easier for you. A business account is basically a bank account that allows
you to make transactions between your business personnel and other b2b companies.

This type of account is generally free of cost. However, you’ll need to pay the necessary fees to make
transactions. The good news is, these accounts come with promotional offers (most of the time).
You can easily waive the fee by maintaining a few conditions. Such as… keeping a minimum daily
balance or making online payments and can earn some bonus instead.

You can establish both local and international transitions using a proper account as well. You’ll be
asked to provide your social security number to open an account such as this. Besides, legal
documents regarding your business need to be passed to the bank authority.

You can read all about the necessary documents in our blog where we discussed things in detail.
I’ll repeat myself here, you can receive money from your customers and also pay your provider using
this account. It’s kinda similar to the typical personal bank accounts that you use to make your daily
transactions in this regard. But there are some differences between them as well.
The substantial difference between a personal bank account and a business bank account is, the
owner of the latter one is the business itself. That means, all the responsibility that comes with this
account -goes with the business.

Yeah, of course when you have a licensed business - no matter how small it is – it holds a self-
identity. Now, it can operate functions openly for its own sake. This is the moment you grant wings
to your business by establishing a business bank account to stimulate financial tasks independently.

You may wonder how it can make transactions by itself. Wait, don’t get confused. You need to
add the authorized signature of the person to give the validity of the transactions. The authorized
person is you.

But, in case you need someone else too to manage your cash, you have that option as well. You can
add or replace that authorized signature to handle the account by multiple persons. You need to
provide personal information of that person such as social security number or driving license.
However, to keep things safe and clear for your sake, it’s wise to mention to the bank authority the
role of that person to your business, such as treasurer, accountant, employee, or partner.

Usually, some banks come with a specialty in a particular type of banking. For example, if you think
that your business transactions will largely depend on electronic methods such as ATMs or Online
For payments, then you should look for banks that offer cheap and free electronic transactions.

Reasons Why You Should Have a Bank Account for Your Small Business

If we talk about the benefits of a business bank account, then the first thing that should be
mentioned is that it gives you a clear picture of your business fund. Besides, it’s not a good practice
to use a personal bank account for business dealings.
You’d really like to keep track of your business cash flows separately rather than mixing it up with
the personal transactions.
At the same time, it’s a huge legal advantage.

You’ll be asked to provide income statements while tax time rolls around. That time you’d not be
wanting to scratch your head and look around papers to get the information. The business bank account
will ensure you get the tax procedure done within the minimum amount of time and hassle-free.
This type of account can save you back while any internal assessment regarding an audit needs to be
done. It’s like a ledger of all your expenses and incomes of the business. In case of any dubious
situation – you can ask for the record of your account and get the papers to make things clear.
No matter how small your business is, it could be audited at any moment by the IRS. If you mix up
your personal income with the revenue of the business, it’ll surely bring an unpleasant scenario for
your business, hence, for yourself.

Another best thing about a business bank account is that it carries a ‘professional’ attitude. Using a
personal bank account to deal with the things for your business – is really a decent way to prove the
lack of seriousness in the art of dealing.

Your business bank account represents the business itself. It not only ensures a secure and one-
stop financial station for your business but also glorifies its identity of it. You can understand that
this type of financial dealings with your customers shouldn’t be done with a personal account, right?
So, these were the ideological benefits of a business bank account. Now, let’s talk about some of the
monetary outcomes that you can relish with this type of account. Don’t think that a bank account
works just to send and receive money.

A business account offers loans that come with attractive conditions. You can get a good amount of
loan against your business account and invest it to grow your business to a higher altitude rapidly.
Usually, it’s very simple and easy to get loans if you have a bank account named after your business.

It ll be easier for you to manage electronic payments online to quickly and efficiently disburse
funds to employees or vendors. Besides, credit cards, ATMs, drafts along with various official works
can be done using a business checking bank account.

But the most important thing is that a business bank account separates the personal liabilities of
the business from yours. If anything goes wrong for the business, for example, bankruptcy, you could still
find a way to escape the penalty from a legal standpoint.

7 Top Banks to Go to for Accounts for Small Businesses

Hundreds of banks offer business bank accounts with excellent features such as free or very low
monthly charge, no or less introductory deposits, nationwide free ATMs, etc.
However, other basic beneficial sides of each bank also came into consideration before determining
the best bank for business checking accounts.

BlueVine, Axos, First Internet Bank, Bethpage, Radius Tailored Checking, Bank of America, and Vystar
are some of the best banks that currently offer good business checking features alongside the option
of earning interest from balance.

BlueVine Business Checking Bank Account

BlueVine offers the best features as a business checking bank account. It comes at the top of the list
for some valid reasons such as attractive interest rate on balance, a large number of cost-free
transactions, and so on.

BlueVine is a banking service provided by Bancorp Bank. You can say that it's kind of a side-business
of the organization. Don’t feel insecure at all. Because all the accounts associated with BlueVine are
insured by the Federal Deposit Insurance Corp. for up to $250,000.

It has grown rapidly in the industry as one of the most advanced and efficient online business
checking bank account providers. Their mobile banking feature lets users download a dedicated app
and keep track of their cash flow which is time-saving and easy to operate.

By the end of 2020, BlueVine Capital Inc. has been able to win the hearts of more than 200,000
customers with approximate financing of $9 billion. It seems that BlueVine is growing at a pace that
its competitors are finding it very difficult to outplay the company.

This is very common among all other online businesses checking bank accounts that don't require
you to deposit cash physically. But BlueVine lets you deposit cash from more than 90,000
participating locations from almost 50 states in the US.

BlueVine will charge people in two scenarios. One is when they deposit cash from the Greendot
retail locations, costing $4.95 per deposit, and the other is when they send wires – costing as much
as $16 for each.

BlueVine can give an interest of 1% annually on all balances up to $100,000. As soon as you’ve
deposited 1$ into your account, you can start counting on your interest. This creates a good
opportunity for you to earn a handsome amount of profit from your savings.

It also offers BlueVine Debit MasterCard. You can withdraw cash and pay for purchases with this
card. Besides, it’s warmly welcomed in online shopping or conducting transactions at an ATM. There
are 38,000 in-network ATMs for BlueVine.

There is no limit to the transaction and you can make a fee-free withdrawal from a large number of
ATMs are situated all over the country. Making unlimited ATM transactions and transferring money
between accounts without any cost make it earn the title of best business checking bank account.
Furthermore, unlike many other banks, BlueVine doesn’t require any monthly fees or minimum
opening balances. Also, you’ll be happy to know that there are no daily or monthly requirements on
balance for BlueVine users. It’s a ‘sigh-of-relief’ feeling for the new entrepreneurs.

You should know that this is only an online-only banking solution. You’ll miss the physical presence
of this bank. But to ease things out for you 24/7 customer service is on offer. You can contact their
responsive customer care representatives over the phone in case you need any help.
PS: BlueVine has temporarily paused taking new applications for business bank accounts since April
9, 2021. They’ll soon start the campaign again. In the meantime, small business owners can visit the
bank website to include themselves on the waitlist to sign up for new accounts when they resume.


Axos Business Interest Checking Bank Account

Perhaps, Axos is the only bank that offers both general business checking and a special interest
yielding business checking banking flexibility. To put it simply, the Axox Business Interest Checking
The bank is fully dedicated to business holders who want to yield interest from it.
You can claim as much as 0.81% APY from your balance up to $5,000,000. Even then, if your account
balance is more than the mentioned, you can call the representative of the bank to claim more
interest rates. However, Axon keeps this information absolutely confidential.

Basically, people tend to earn interest from saving accounts where the cash is less liquid than a
checking bank account. But this is a huge opportunity for business owners to earn some profits and
also make some transactions often using the Axos business checking.

You should keep in mind that Axos doesn’t let you perform any operation free once you cross the
limit of 50 free moves per month – be it debits, credits, deposits, or any other activities. They count
on moves in general that you make using the account rather than counting on a particular service.
Don’t worry if you think you are gonna exceed the monthly free limit of transactions. You’ll be able
to make any kind of payments or withdrawals only for a charge of 0.50$ for each transaction.
However, Axos comes with an ‘Axos’s Remote Deposit Anywhere’ feature, allowing you to make 60
free services are free for each month. It will let you deposit paper checks by scanning them with your
android or apple device.

To open an Axos Business Interest Checking account, you’ll need $100 at the opening. Nevertheless,
this is the lowest minimum amount in terms of all accounts that comes with Axos. So, it’s a stand-out
for this particular account.

On the other hand, Axos bank will greet you with a $100 welcome bonus! This promotional offer will
end on June 1, 2021. So, if you feel the terms and conditions of Axos suit your business, then open
the account soon to enjoy the sign-up bonus.

There is a technical thing that you need to maintain to avoid additional charges from the bank. You
shouldn’t let the average of your minimum daily balance be less than $5,000 for a month. Otherwise,
you’ll be charged $10 as a monthly maintenance fee.

Some additional features like free image statements on mobile banking, the first 50 sets of free checks,
unlimited ATM access with fee reimbursement option along with free bill payment option is the
things that you’d like to enjoy with the attractive interest rate of Axos bank.

First Internet Bank Business Checking Bank Account

Wouldn’t you consider yourself privileged when a bank offers you an APY of 0.30% that starts when
you have just $10,000 on your account? Yes, the First Internet Bank is now one of the leading banks
that comes with high-yielding annual interest.

Not just this attractive feature that comes with the bank but also no monthly fees and unlimited free
transitions are the stand-out points for business checking. Banks tend to put on extra pressure
on their account holders through multiple terms. But not in this case of the First Internet Bank.
There is no minimum balance required to keep the account running. All you need to do is deposit an
amount of $100 initially to open the account. After that most of the work that you do will come
almost free.

Be it receiving deposits from your client or paying someone else, it's all free of cost for the First
Internet Bank Business Checking bank account. Besides, if you need to pull out cash at any moment,
then the vast ATM network that comes with the bank will let you withdraw money from their
partnered ATMs.

All the ATMs of this bank are totally free of cost. Make as many transactions as you want using the
free debit card provided by the bank and no monthly limit is burdened. There are 20,000+ ATMs for
the bank to make it efficient for their customers.

Being a business owner, you’d need to transfer wires frequently. This account comes with the option
of outgoing and wire transfer fees both in the domestic and international arena. The domestic
outgoing wire transfer fee is $20 while the international transfer charges a fee of $50 per item.
You should keep in mind that there is no physical presence in this bank. They are a particularly
skilled organization when it comes to conducting their business online. Their strong online and
mobile banking network all over the country is really helpful for businesses that run in different
corners of the states.

Besides, you should consider this bank account if you think you need multiple bank accounts in a
bank that comes with a high-yielding interest rate. There are different business accounts such as
Business saving account for this bank which offers higher APY rates and interesting features.


Bethpage Free Business Checking with Interest

Bethpage’s free business checking account is offering a 0.20% APY along with many other easy and
friendly facilities for small or sole-proprietor business holders. Though they’ve put some
conditions for the account holder to earn the interest, it also gives benefits like lower loan costs.
Bethpage Federal Credit Union has been around since 1941. They have a variety of bank accounts
and have been providing services for their customers for more than 50 years. Their business
checking bank account is one of the popular and center of attraction of the company.

You should remember that Bethpage will implement some conditions before letting you earn the
profit from your savings. You’ll have to enroll in their online banking, make direct deposits, and
furthermore, have to use their debit cards 10 times a month to earn the profit from the interest.

You won’t require any minimum balance to keep your account running. All you need is just a $5
start-up to create the account. There is no monthly charge or any transaction limit for the Bethpage
business checking bank account.

Unlike other banks, you won’t be charged to make deposits into this bank account whatsoever.
There is no limit on deposits either. Besides, there are 30,000 ATMs nationwide to withdraw money
for you at any moment.

Bethpage not only offers a healthy APY but also its lower cost on loans is an advantage for the
business holders. A loan in time can make it beneficial for the business to invest money and make
the most use of it.

Bethpage operators from just a few branches of their own but they’ve more than 5,000 shared
branches to serve its customers. Besides, they have free online and telephone banking features to
make things comfortable for the customers.

You’ll be provided with a free business debit card from the bank within a few days of application. If
If you wonder what you need to open a business bank account in Bethpage Federal Credit Union then
note the factors below so that you can arrange the papers beforehand.

The first thing you need is your Business Certificate. Then the Social Security Number or Proof of Tax
ID Number will also be required. Besides, you’ll have to fill up the Bethpage Sole Proprietorship
Resolutions Form if you are a sole proprietor. Lastly, your driving license for your official signature.

Radius Tailored Business Checking Account

Radius comes with their basic business checking online that they claim to be the best in the industry
right now. Their business checking account takes just around 10 minutes to set up online. The most
interesting thing about their account is that they offer up to 1.5% cashback.

Though there's no minimum amount required for the account, however; you need to deposit $100
at the opening of the account. That’s all, there are other monetary requirements to keep the
account alive. But you’ll need to maintain a minimum of $5000 to waive the maintenance charge for
the account.

Radius Tailored Business Checking comes with a 0.10% APY on all balances over $5000. An excellent
cashback offer along with a 0.10% annual interest option really gives it the value to top among the
best checking accounts.

There is a limited-time offer for you to enjoy a 1.50% cashback when you shop in the following
categories: advertising, computer equipment, and computer services. Also, you’ll be honored with
1% cash back on debit card purchases – and it’s totally UNLIMITED!

However, since you own a growing business, it’s always wise to pay some heed to the extent of
earning interest from your checking account. Radius offers a maximum of 0.10% APY for its clients.
You can earn the interest once you have a balance of $5000 or up.

A worldwide free ATM access really gives a bonus point in the ever-competitive industry of banking.
Radius rebates the fee for your ATMs so that you can enjoy a free withdrawal worldwide including
third-party ATMs.

You can Radius accounts to Mint, QuickBooks, or Quicken for better hustling. Besides, having a
Radius business checking account means full service at your fingertip. The Radius mobile app that
comes with the account will let you manage mobile checks deposits or overview transaction history.

Besides, you can pay bills, pay bills, transfer funds, and send wires anywhere within a second by the
Radius mobile app.
Radius comes with additional features of sending great-looking invoices straight to your customers’
inboxes within minutes. These invoices will inspire your customers allowing them to instantly make
payments using their debit card, credit card, or electronic bank transfer.

Radius has some point in awarding the best business checking accounts of 2020. Their firm security
system behind the operation deserves kudos. They have 256-bit encryption to ensure that data is
protected with the highest level of security.

Furthermore, all the account deposits are FDIC-insured up to the highest possible amount allowed –
$250,000. So, you shouldn’t be worried about the safety of your account once you’ve got a business
checking account on Radius.

Bank of America Business Advantage Banking Account

There are times when experience and reputation count. This is where the leading bank of America,
namely The Bank of America comes into consideration. Currently, the renowned bank is offering a
chance to earn up to a $500 bonus for new small business bank accounts.

If you want to critically appreciate a bank from an overall point of view, then this is the best bank
that you’d be looking for. You can perform the maximum number of monthly cash deposits as well
as earn a huge introductory bonus from the Bank of America business bank account.

You can earn a bonus of $100 by depositing $1,000 or more within the first 30 days of opening the
new account. This bonus amount will increase to $200 if you deposit $3000 within the first month of
opening the account.

In addition to that, you’ve got a chance to earn a bonus of $300 by spending $3000 on new online
purchases within the first 90 days of getting the approval of your credit card. Honestly, there is no
bank in the industry that provides this much of a bonus right now.

There is no minimum balance required to open the account. However, you need to pay a monthly
charge of $16 for the account. Though you can waive it by maintaining a few terms. You need to
keep $5,000 of the monthly average balance.

Besides, at least $250 in new net qualified purchases must be done using the Bank of America
business debit card. In addition to that, you should become a member of Preferred Rewards for
Business (first 4 checking accounts, per enrolled business) to waive the monthly maintenance fee.
Bank of America is offering you a fee-free transaction for 200 items per month. After that, you’ll
have to pay an amount of 45 cents per item. However, there is no excess transaction fee for the
automated clearing house (ACH), debit card, online billing, and checks deposited through remote
deposit online.

There is a strong network of 16,000 Bank of America ATMs nationwide. They won’t cut your pocket
while you make any kind of transaction through their in-network ATMs. But you’ll have to pay $2.50
each time you make any transaction from a third-party ATM.

Though it seems that Bank of America is kind of expensive and defines rather difficult terms than
other banks, they are the most reputed bank that operates in the USA. The best thing is the
credibility of your account goes higher once the name of that bank comes with your account.

VyStar Credit Union Small Business Checking Account

The VyStar Credit Union is the 18th largest credit union in America. The Florida-based organization
has a huge asset behind its name and is one of the best among the credit union cluster. Currently,
they are offering a competitive APY of 0.10% on all balances over $2500.

The Vystar Small business checking account suits mostly the sole proprietors. But the good thing
about them is they let teenagers or college students open a business checking account so that
they can run some side business alongside study.

The account doesn’t require any opening deposits which is really helpful for your startup businesses.
Besides, there are no monthly charges for the account holders. In addition to that, you get the honor
of processing up to 100 free items each month. You’ll be charged $.20 per Item once you cross the
limit.

These include check clearance, fund transfers, deposit items, withdrawals, and other credits or
debits. However, you can securely manage your accounts online or on your mobile device using the
Vystar Mobile Banking App. This truly adds a ‘bank on the go’ feature to your business.

There is an additional option of adding sub-users to your VyStar Internet & Mobile Banking account.
You can give any of your accountants/bookkeepers easy Internet access to your business account so
that they make the transactions for you in your absence. You can limit the authority of an added
person.

The highest free deposit/withdrawal is up to $10,000 cash per month. Once you’ve met the free
limit, you’ll be charged $.15 for each $100 while depositing cash. You can make a deposit effortlessly
from any VyStar Credit Union branch or ATM location near you as well by using Mobile Check
Deposit.

They provide a nationwide ATM facility though they charge extra bits of money for the third-party
ATM providers and it varies according to the owner of the ATM. But a network of 20,000+ ATM
booths is not so minuscule in number to provide you the surcharge-free services.

You should know that the VyStar Credit union comes with two business checking accounts. One that
is mentioned above and another named Regular Business Checking account which is comparatively
costly and requires rather difficult conditions and also doesn’t let you earn interest on the balance.

The Picks of The Bunch in A Nutshell

From hundreds of banks offering business checking accounts, it is not easy to determine the best
account. But if the choice is to be made on a particular criterion, then the task becomes easier. The
top seven banks that come in this article are kind of similar in their offerings.

Yet, every one of them embraces a few differences. While BlueVine is the best among the top annual
percentage yielding accounts, Bethpage offers the best ATM networks. On the other hand, Radius
deserves the affection for its lucrative cash-back offer.

Similarly, The Bank of America’s Business Checking account is unparalleled to anyone else in terms of
giving the highest amount of bonus on deposits and purchases.
Far or less all the banks have excellence over their online or mobile banking facility, but with a 256-
bit data encryption system and well-organized mobile banking app, Radius Tailored Business
Checking contains the best place in this regard.

Key Consideration Before Opening Business Checking Bank Accounts

As the title goes, a business checking bank account is basically for the people who have businesses
owned by them. But before choosing a particular bank for your account, you should consider some
important facts like the number of free transactions they offer, how safe the bank is, and the
maintenance cost.

Don’t choose a bank that puts a huge load of maintenance costs on you. Don’t let it consume a
portion of your profit in the name of maintenance costs. Try to read all the terms and conditions
before applying for the account.

A business checking bank account is not only a medium of doing business transactions. It’s also a
handy way of earning interest from the idle money that remains on your account. Try to choose the
banks that come with a handsome rate of interest so that you can put an extra layer to your profit.
Try to choose the same bank that you’ve been familiar with in the past. It’s always better to take
the paths that you are accustomed to. You shouldn’t take any unknown turn to put the wagon of
your capital at risk.

Go to the website or call the representative of your current personal account to check if the bank
has an option of a business checking account. It ll save you time and energy when you have all of
your accounts in the same bank.

People should check up with banks by visiting them rather than conducting their businesses online.
It’s not like online banks are less safe and possess any particular threat. Yet, it's wise to be notified
about the physical presence of your bank and the amount of stake that it owns behind the locker.

FAQs You Might Have about Business Bank Accounts

Even though I’ve tried my best to answer all your queries on the topic, I imagine you’ll have a bunch
of questions about business bank accounts and their perks. Let me try and answer those for you!

How Do I Determine the Best Business Checking Account?

Be it for a business a start-up or an established institute, the business checking account should be
offering a free or very low monthly charge. Besides, pay attention to the monthly transaction, ATM
fees, wire fees, and minimum introductory balance that’s asked by the bank.
Try to evaluate if you need an account that offers free in-cash deposits or not. If you need the in-
cash deposits badly then go for the physical banks rather than opening the account to an online-only
bank.

Can I use a personal bank account for my small business?

Yes, you can. No one will stop you from using your personal bank account for your small business
UNLESS you want trouble for yourself.
It’s HIGHLY RECOMMENDED that you open a separate bank account for your business.

It’ll let you evaluate all the incomings and outgoings of cash while you use a separate bank account
dedicated to business. Besides, it’s a good way to keep your personal dealings safe from overdrafts.

What Do I Need to Open A Business Checking Account?

Usually, the trade license of your business and your Social Security Number is asked for. However, the
driving license can be asked to validate your signature. In terms of opening the account online,
you’ll need to scan the papers and upload them in the application window on the bank website.

Do I Need an EIN to Open a Business Bank Account?

Basically, you don’t need one but we recommend that you do have an EIN assigned. If your business
is under a sole proprietorship, then the chance of IRS invasion is probably less – but never zero.
However, in case you have any employee who can access your account… then you could be asked to
provide the EIN number of both for safety and IRS audit.

Can I open a business checking account at a credit union?

Yes, you can. This is a very popular site for opening a business bank account for your business. Both
Federal Deposit Insurance Corp. (FDIC) banks and credit unions offer business checking accounts.
There are also state-based credit unions that come with special offers for state residents.

To Conclude

A bank account for small businesses might seem costly in a particular state. However, in exchange for
a bit of digging around, research, and selecting the right bank... you can save a lot of trouble.
It is very important to keep a separate business bank account where all the whereabouts of your
business transactions can be found within a few seconds.

The universal appeal of each business owner is to get the business checking account that offers the
lowest amount of charge to do the dealings. Try to pick the best account for your business according
to the nature and demand of your business and keep the earnings safe and secured.