When you are a small business owner, your bank can be your best friend. It can also be a source of frustration or worse, a source of unexpected and unnecessary costs. Choosing the right bank for your small business is important. Here are some to think about.
Santander Bank offers three different checking accounts for businesses of different sizes. Small businesses that typically have 50 or fewer transactions each month can choose a Basic Business Checking Account. You do not pay for the first 50 transactions, and subsequent transactions are $0.60 each. If you maintain a $1,500 average daily balance in your checking account, the monthly fee of $7.50 may be waived.
Santander also offers merchant services through Clover using your handheld device of choice, countertop POS, or no hardware.
Santander Bank also offers a variety of cash management services to help you keep your money moving. Send money through automated clearing house transactions or by wire transfer. Submit via the mobile app, with a desktop scanner, or via Lockbox.
Chase offers a full suite of business services, which they call Chase Business Complete Banking.
The Chase Business Complete checking account includes Chase QuickAccept, which lets you accept card payments 24/7, anywhere in the US, using the Chase mobile app. Fees are transparent – you pay 2.6% plus $0.10 for tap, dip or swipe transactions and 3.5% plus $0.10 for manual transactions. You also get same day deposits, which can help with your cash flow. There is a $15 monthly service fee, but you can waive it with a minimum daily balance of $2,000 or purchases of $2,000 with your Chase Ink business credit card.
Chase also has a variety of business credit cards to choose from. The Ink Business Unlimited Card gives you unlimited 1.5% cash back on every business purchase. It has a $0 annual fee and a 0% APR introductory interest rate for the first 12 months. After that, the variable rate ranges from 13.24% to 19.24% of the annual percentage rate. New cardholders get a $750 cash back bonus for spending $7,500 on purchases in the first three months.
PNC Bank offers a wide range of business banking services, which include Business Checking, Business Savings, Credit Cards and Business Lending. They also offer PNC Merchant Services, which includes representatives who can help you determine the best payment processing solution for your business. They provide e-commerce solutions for online businesses, as well as contactless and personalized solutions with chip card readers or point-of-sale systems.
Right now, you can earn up to $200 when you open a new Business Checking or Business Checking Plus account. In each of the first three statement cycles, you must maintain a minimum average account balance of $5,000 and make at least 20 total Visa debit card transactions. Or, if you open a Treasury Enterprise plan or Analysis Business checking account and maintain a minimum average ledger balance of $30,000 for the first three statement cycles, you’ll receive $500.
Mercury specializes in banking for startups. In addition to business checking and savings accounts, they offer business consulting and access to angel investors and venture capital.
The Standard Mercury account has no minimum balance requirement, no monthly service fee, free domestic and international USD wire transfers, and a 1% fee on currency exchange. If you have $250,000 to keep, you may qualify for a Tea Room account, which includes Tea Room partner rewards and events that give you access to venture capitalists and other business experts.
Mercury is a fintech company whose banking services are provided by Evolve Bank & Trust, member FDIC.
LendingClub Bank does more than just lending, despite what the name would suggest. Business customers can choose from a variety of operating (checking) accounts, savings accounts and certificates of deposit.
LendingClub compliant checking account pays % APY interest on balances of $5,000 or more. You also get 1% cash back on online and signature-based point-of-sale transactions using your LendingClub Debit Card. You also get free debit card transactions around the world, including unlimited discounts on fees charged by other banks. There is a minimum deposit of $100 to open an account, but after that, there is no minimum balance requirement. However, you need to maintain a balance of $5,000 to avoid the monthly maintenance fee.
Savings account options include statement savings, money market accounts, or an IOLTA or IOLA Now account for attorneys in a group. You can sync your Lending Club deposit accounts to Mint, QuickBooks or Quicken to make bookkeeping easier.
LendingClub offers several lending options for businesses, including commercial real estate financing, equipment financing and SBA loans.
US Bank offers three packages for small businesses:
The Silver Business Checking Account package has no monthly maintenance fee and allows up to 125 free transactions per month. For more than that, you’ll pay $0.50 per transaction. Like all three packages, you also get mobile and online banking along with bill payments, card payment processing, overdraft protection (with Business Reserve Line) and more.
The Gold Business Checking Account package offers 300 free transactions per month, after which you’ll pay $0.45 for each transaction. The package has a $20 monthly maintenance fee, but you can waive it if you have US Bank Payment Solutions Merchant Banking, $10,000 average collected balance, a $20,000 combined average collected business deposit balance, or $50,000 average collected business deposit and outstanding credit balance .
For businesses that maintain high checking balances and do more transactions, the Platinum Business Checking Package offers 500 free transactions per statement cycle and 200 free cash deposits. After that, you’ll pay $0.40 per transaction. The $30 monthly maintenance fee can be waived with a $25,000 average collecting balance or $75,000 combined with average deposits and outstanding credits.
US Bank offers a checking account exclusively for non-profits, as well as premium services for businesses that have complex banking needs.
When you open a business checking account with US Bank, you can earn a bonus of $300, deposit at least $5,000 in new money within 30 days and maintain a balance of $5,000 or more for the first 60 days. can.
Questions to Ask When Choosing a Small Business Bank
Before you make this important decision which bank to choose for your small business, ask yourself these questions.
what to consider
- How many transactions am I likely to make? If you accept card payments and you have a relatively low average ticket, this may be a higher number than you think. Look at the number of sales you make in a month, then double or triple that number to calculate the growth. Don’t forget that transactions include cash deposits, as well as any funds you withdraw from your account to pay bills, payroll, and more.
- How fast am I growing? If you’re just starting out, an entry-level account may be fine for now. But if you’re planning on growing fast (and what business plan isn’t at that?), look for a bank that has different levels of business accounts. That way, if you extend your first account, you won’t need to change banks. You can simply upgrade to a higher tier account.
- What is the minimum balance I will have in a checking account? Many business checking accounts do not have a minimum balance requirement, but may require a minimum to waive the monthly maintenance fee. And, unlike a personal checking account where your minimum balance can be $5 or $10, a business checking account monthly fee can be $50 or more. So it is wise to leave it out if possible.
The right bank can help make your small business more efficient as you grow. Choosing the best banking partner can be an important part of the success of your business.
Rates are subject to change; Unless otherwise stated, rates are updated from time to time. All other information about the promotion is accurate as of April 12, 2022. Additional requirements may apply. Offers and terms are subject to change.