Business bank accounts: A guide for businesses

A business checking account is a lot like a personal checking account. With both types of accounts, you’re typically able to make deposits and withdrawals, process ACH payments, write checks and use a debit card to make purchases and use ATMs. To create this list, Forbes Advisor analyzed 50 business checking accounts at 20 financial institutions, including a mix of traditional brick-and-mortar banks and online banks.

With our guide to the types of business bank accounts, you can make sure you’re getting the right account for your business needs. The difference between business bank accounts and merchant accounts relates to how they work and who operates them. It’s also important to separate your business finances from your personal finances for tax purposes.

So not only do you have to think about how often you can access your savings account, you also need to think about how you’ll access it. In other words, if you plan to constantly pay for expenses from your business bank account, you should probably stick to a checking account. If you’ve ever had a personal savings account, you already know the basics of a business savings account. They earn more interest on your funds than checking accounts do (except some interest-bearing checking accounts will earn more than basic savings accounts). Keep in mind that interest-bearing checking accounts for businesses are pretty rare—you won’t find them at most banks. And if you really want to maximize your returns, you should look at business savings accounts.

  1. One of the main differences, though, is that the account will be in your business’s name, which means more professional invoicing, statements, and checks when issuing payments.
  2. A small business checking account that covers the essentials, plus built-in card acceptance.
  3. The LendingClub Tailored Checking account offers unlimited free transactions.
  4. Stripe Atlas makes it simple to incorporate and set up your company so you’re ready to charge customers, hire your team and fundraise as quickly as possible.
  5. They can use the line of credit in an emergency to keep their business running smoothly.

We will charge a cash withdrawal transaction fee for additional non – Wells Fargo ATM cash withdrawal transaction. Fees charged by the non – Wells Fargo ATM operator or network may apply. Incoming wire transfers received in a foreign currency for payment into your account will be converted into U.S. dollars using the applicable exchange rate without prior notice to you. For more information, see the “Applicable Exchange Rate” section of the Deposit Account Agreement. The average ledger balance is the sum of each day’s ledger balance divided by the number of days in the fee period.

We help make it easy to access your funds and make and receive payments through Chase Business Online and the Chase Mobile® app. A few additional aspects to keep in mind are that though all CDs issued by Federal Deposit Insurance Corporation (FDIC)-insured banks are protected, not all banks are covered. There are also different types of CDs that you can open depending on your long-term financial goals for your business. Rates are also variable, but typically the higher the minimum deposit required the higher the APY offered will be. While there is not a one-size-fits-all solution, having an understanding of the different accounts, banking requirements, and when they might be necessary can make your choice much simpler. Keep both the short-term and big picture in mind when looking for the best business account for your needs because those needs will likely expand over time.

Merchant services are provided by WePay, Inc., a subsidiary of JPMorgan Chase Bank, N. A. Chase Payment Solutions services are provided by Paymentech, LLC, a subsidiary of JPMorgan Chase Bank, N.A. GoCardless helps you automate payment collection, cutting down on the amount of admin your team needs to deal with when chasing invoices.

Certificate of Deposit Account

Though banks may not check your credit as part of the business checking account application, they may pull your ChexSystems report to see how you’ve managed bank accounts in the past. A business checking account provides the foundation of your business banking relationship. One of its most important functions is to separate your business banking from your personal banking. Business bank accounts are essential tools for managing operating cash flow, but the types of accounts needed vary by company.

The versatility of career opportunities is one of the most empowering aspects of earning a business degree, Wallace said. Wallace said master’s degrees usually take one or two years of full-time study, while the duration of doctoral-level business degrees can vary widely. Other academic credentials you may consider pursuing are business certificates and certifications, offered at undergraduate and graduate levels. These can be credit-bearing academic credentials, and often serve as a way to augment your degree in specialized areas of business and expand professional opportunities. If you use a screen reader, magnifier or voice command software, refer to the business tax account accessibility guide.

Business bank accounts 101: A guide for businesses

Minimum deposits for business savings accounts may also be higher than checking accounts and the amount deposited may impact your annual percentage yield (APY). Today, you have more options than ever when it comes to online-only banking services. Are you okay having electronic deposits with an online business bank account, or do you need a physical branch to make deposits, withdraw cash, and interact with a bank rep in person? Many accounts have a monthly maintenance fee of $15-30, so consider whether you’re willing to pay for that. Some banks will waive that fee if you meet certain criteria, such as maintaining a certain minimum account balance or having other types of business accounts.

There is no required minimum deposit, no monthly service fee, no minimum balance requirement and there are no ATM fees at 37,000+ MoneyPass ATMs nationwide. Bluevine does not assess non-sufficient funds fees and offers two free books of checks. For many business owners, the first concern is to establish a business checking account.

Manage Your Money

John and Kelly want to open a business bank account to keep the funds from their auto repair shop separate from their personal funds. You can use this business account to provide overdraft protection for your checking and make up to 20 deposits, $5,000 in cash, free each statement period. In addition to being packed with valuable perks, this account regularly offers one of the best business bank account bonuses, so you can potentially earn a cash bonus just for opening a new account. Wish you could find a happy medium between traditional savings accounts and CDs?

How to Open a Business Bank Account

Financial accountants record, organize, and report the financial data generated by the business. Managerial accountants then take the reports developed from that information and analyze it. The managers, in turn, put programs in place to improve the firm’s bottom line. This business account types is a high-level overview of the different types of accounts in small business accounting and how they relate to your business; be sure to investigate further for more detail in each case. A liability account represents a type of debt or future cost for the business.

How to Help Your Small Business Recover After the Holidays

These are different from the checking and savings accounts you use for your personal banking. A common practice before the advent of banking apps was for a business to collect cash and cheques into an envelope and deposit them all in one lump sum. When this happens it appears on the bank statement as one transaction.


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