Free Business Checking Accounts are (often) small business accounts which don’t require a minimum balance or monthly service fees. If you are running a small business on a tight budget, then a free business checking account will be of value to you.
This, however, does not necessarily mean that running the account is free—there are charges for a few transactions.
It might also interest you to know that these accounts usually don’t earn interests.
Finding a free business checking account that serves the unique needs of your business may require some digging, especially if you are looking for a free checking account among the biggest banks and online-only banks.
Brief looked at the best free business checking accounts options provided by brick and mortar banks, and online banks and compared their offers. Below are the six best free business checking accounts.
Chase bank has a Total Business Checking account option that is tailored to help small businesses with less than 100 transactions per month and at least $5,000 monthly cash deposit.
The Chase Total Business Checking Account is normally at a monthly fee of $12, which can be waived if your business can maintain a minimum daily balance. If your business can maintain the minimum daily balance of $1,500, it automatically qualifies for all the basic products that all established banks provide—free of charge. That includes online and mobile banking services.
To put this into perspective, Chase bank has an established network of about 5,000 branches across the US and more than 16,000 ATMs. The bank serves close to half of America’s households which means so much convenience for business owners.
The Novo Online Business Bank is an internet and mobile banking system that’s tailored for small and medium enterprises. Their partner bank is the Middlesex Federal Savings Bank, a renowned community bank based in Boston, Massachusetts.
Novo Online Business Banking earned its spot on this list because it offers a free business checking account. What makes their offer even more incredible is that they don’t charge monthly fees, no transactions limits, no cash deposit limits and have a nationwide presence.
Usually, when a bank gives you such an irresistible offer, it comes with some hidden fees—here, it’s free of charge.
The only downside of this bank is that since it’s an online-only bank, you have to make the cash deposit into a local bank account before you can transfer it to the Novo Online Bank.
If you have a small business or looking to start a small business which you can run using a digital-only banking option, the Novo Online Business Checking Account is worth considering.
TIAA Bank, formerly known as EverBank, also has an amazing free Business Checking Account. This account is most suitable for small and medium businesses which need less than 200 transactions and up to ten bill payments per month.
Going over the 200 transactions limit will cost you an extra $0.25 per transaction while going over the 10 bills per month limit will cost you an extra $0.5 per bill paid, both of which are fairly reasonable fees.
The business checking account from TIAA will not cost your business any money in monthly service fees if you can keep a minimum balance of $5,000; failure to which you will incur about $15 in monthly maintenance fees.
The problem with the TIAA Bank Business Checking account is that it’s available as an online-only account, so you first have to make deposits into a local bank account and transfer the funds to your TIAA account.
It’s worth considering if the cash flows around your business can be solved using a digital-only checking account.
The U.S Bank is an established market player with over 3,000 branches in 28 states and a nationwide online presence. The bank has a Silver Business Checking Account that’s packaged to serve the banking needs of small business.
When you sign up for this checking account, your business will enjoy all the standard banking services free of charge; as long as you don’t exceed 150 transactions per month. If you exceed this limit, your account will be charged an extra 50 cents per transaction—which is affordable.
The only major disadvantage of the US Bank Silver Business checking account is that it has a limit on cash deposits. You are only allowed to deposit 25 units of cash free of charge. Any cash deposited after the 25th unit will attract a 15 to 20 cents fee (varies by State) per $100.
Therefore, if your business makes way more than 150 cash deposits a month, maintaining this account might prove costly. But if you make only a few transactions a month and you have a U.S Bank branch in near your business, it could be the best option on this list.
A Business Checking Account from the Axos Bank is a good option, especially if your business uses ATMs within the US. Though it’s a digital-only checking account, it offers you an opportunity to enjoy all the basic business checking services free of charge and makes reimbursements for ATM service fees.
Well, there is a requirement to these free services; you have to deposit at least $1,000 into the account on signing up.
With this account, you can make up to 200 transactions a month free of charge, and thereafter a fee of $0.3 applies for every additional transaction. There are no monthly maintenance fees, no charges on bills paid, the checking account can be used with quick books and deposits can be made remotely using the Axos Bank mobile application.
With an asset cap of about $2 trillion, 8,050 branches and more than 13,000 ATMs across the United States, Wells Fargo is arguably the largest bank in the US. This dominance is a big advantage to business owners as they can access the bank with great convenience.
Technically, the Wells Fargo Business Choice Checking account is not a free package. The service normally comes at a monthly fee of $14. It’s only free in the sense that the service fee can be waived if you can meet one of the following conditions:
- If you sign up for specific Wells Fargo services on offer (depending on offers available).
- Ensure a minimum of $7,500 balance in the Business Choice Checking Account.
- Make a minimum of 10 debit card purchases every month.
- Maintain a minimum combined balance of $10,000 across different Wells Fargo Accounts.
This account allows you to make 200 transactions free of charge. On exceeding that limit, a fee of $0.5 per transaction applies.
Out of the top six best free business checking accounts reviewed, Chase Bank is our pick—that does not suggest that it might be the best option for your business. The most suitable free option for your business would be one that serves the unique needs of your business conveniently.
Now go ahead, confidently, and try out a free business checking option that will work for you, and enjoy banking with it.