Introduction: The Best Bank for Small Business and Small Business Accounts
Running a small business comes with its share of challenges. Trying to stay afloat in an ultra competitive market requires a smart business mind and finding a niche where small businesses can thrive.
Finding the best bank for a small business is an important step that any small business owner should prioritize.
The best banks for small business accounts help to simplify a company’s money management and cash flow.
With so many different tasks on hand, small business accounts can help owners worry less about their finances in order to dedicate more time to helping their business thrive.
But how do you know which small business bank account is the best for you? Most banks offer some sort of business account, but there are clear differences between accounts designed for larger, corporate businesses and the best banks for small business accounts.
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In this brief article, AdvisoryHQ will review some of the best small business bank accounts offered by well-known and trusted banks.
We’ll begin by looking at why it pays to shop around for the best small business bank account as well as identify the characteristics of the best banks for small business accounts that will help your business thrive.
We will then review in detail three of the best banks for small businesses including Chase Small Business bank accounts, PNC Bank Small Business accounts, and the Wells Fargo Small Business Account.
We will end by looking at some client small business bank reviews of the Chase small business account, PNC Bank small business checking, and the Wells Fargo small business account.
Why It Pays to Shop for the Best Small Business Bank Account
If you are a new business owner, it might make sense to open a small business account at your personal, hometown bank where you’ve been banking for years.
You most likely have developed a strong relationship with the employees and management at the bank, and they might be willing to offer you a needed loan to help your business during rough times.
You may have read about the benefits offered by bigger name banks such as PNC small business bank accounts or Chase small business bank accounts. But why should you take the time to investigate these supposedly best banks for small business accounts when your local, hometown bank offers a similar account?
While small, local banks may very well be the best bank for your small business, it always pays to check the competition. Consider the following scenario. Your hometown bank does offer small business accounts and helps you open an account for your newly opened business. The fine print on the account mentioned a minimum balance requirement, but you are confident that your business will be successful.
After a few months of operations, you hit a low point and your small business bank account dips considerably below the minimum balance requirement.
On your next month’s bank statement, a $150 charge shows up for not meeting the minimum balance requirement. Furthermore, a note is attached to your statement saying that you’ll be charged an additional $25 dollars a month as a monthly maintenance fee for each month your account is below the minimum requirement.
Had you compared the small business bank account offered by your local bank to other best banks for small business, such as PNC Bank for Small Business, Chase small business checking, or a Wells Fargo small business account, you may have found small business accounts with no monthly fees or minimum account requirements. These perks can become incredibly important, especially for small businesses that are struggling to survive financially.
What You Should Be Looking for in the Best Banks for Small Business Accounts
The best bank for a small business is one that doesn’t charge too many fees. Business checking accounts won’t earn any interest; likewise, they should be free of fees and charges.
According to Nerdwallet.com, “Free business accounts usually don’t earn interest, and there may be charges for some actions, such as transactions over a bank’s limit. But the best accounts don’t have minimum-balance requirements or monthly service fees.”
However, though the best banks for small business accounts may very well offer no monthly fee checking, you should be prepared to ask if there are any requirements to maintain that no-monthly-fee clause.
For example, some small business accounts may require a minimum average deposit level in order to waive any account fees.
Furthermore, other small business accounts may charge you hefty fines if you go over a certain number of monthly cash transactions. Since new businesses often are still in the process of getting established and developing a cash flow routine, it is easy to surpass these transaction limits.
The best banks for small business accounts should allow a certain level of flexibility in terms of the number of transactions you can make per month without being charged a fee.
Besides no monthly fees, minimum account balance, or transaction limits, what else should you be looking for in the best bank for your small business?
- Make sure the bank where you open your small business account offers advice on what type of checks you should order. Many new business owners may order checks with their “doing business as” (DBA) name, instead of their legal name. This might pose a legal problem in some areas, while in others it may be fine. The best banks for small business accounts will make sure you know the legal requirements for the name printed on your business checks.
- Consider specialized credit unions as an alternative to the best bank for small business. According to Business News Daily, “if you belong to an affinity group with access to business checking through specialized credit unions, like those for veterans, former teachers, writers or performers, then that could be a great option.”
- The best bank for small business should offer you free advice regarding money management. To name just one example, if you have one or several business partners, the best banks for small business accounts should help you decide who will be signing their names to the checks you order for your company. Will there be a designated check signer or will all the business partners have to sign on every check? What about checks over a certain amount? These decisions may be hard to make, and banks with a wealth of experience in small business bank accounts might be able to offer you helpful information.
Best Banks for Small Business Accounts
While almost every bank offers some sort of small business bank account, we will review here three of the best banks for small business accounts: The Chase Small Business Account and Chase small business checking, the Wells Fargo Small Business Account, and PNC Bank small business checking and other PNC Bank small business accounts.
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Chase Small Business Account and Chase Small Business Checking
The Chase small business bank account is also one of the best banks for small business accounts. According to Hustler Money Blog:
“There are three different Chase business accounts available: Chase Total Business Checking®, Chase Performance Business CheckingSM, and Chase Platinum Business CheckingSM. Each account offers your business a certain amount of free transactions and cash deposits; the amount of free transactions and deposits will grow as your business grows. Additionally, you will have access to thousands of Chase branches and ATMs located throughout the US, and you will have the ability to use advanced online and mobile banking options.”
While all three of these Chase small business accounts do charge some sort of monthly fee, those fees can be waived in a number of ways. For example, the Chase Total Business Checking® is one type of Chase small business checking account where the $10 monthly fee can be waived if you maintain a balance above $1,500.
As your business grows, your Chase small business account will allow you a greater number of transactions and deposits per month.
Furthermore, Chase small business checking also gives you access to several important mobile banking apps that can make your business money management easier.
For example, with the ADP Mobile Payroll app, you can easily keep track of your payroll without having to hire an accountant.
You can learn more about the best Chase small business account for you here.
Wells Fargo Small Business Account
The Wells Fargo small business account goes by the name Wells Fargo Business Choice. This Wells Fargo small business account does come with a $14 monthly fee, but it can easily be waived as long as your business makes a minimum of 10 debit transaction per month.
You are given 200 free monthly transactions with the Wells Fargo small business account, which is much more than most small businesses generally use, even during the first, hectic months of operation.
Furthermore, the Wells Fargo small business account has no charge whatsoever for the first $7,500 in cash deposits each month. However, if your business handles large amounts of income over the $7,500 limit, you will be charged $0.30 cents for every $100 dollars in deposits.
PNC Small Business Checking and PNC Small Business Accounts
PNC small business accounts are another option you should consider for your business banking needs. This best bank for small business offers a free business debit card so that your business can depend less on writing checks.
Furthermore, PNC small business accounts also gives you the freedom of online banking and bill pay, which allows you to deposit checks any time of the day from your smartphone.
Furthermore, PNC small business checking services also come with optional overdraft protection so that your business can benefit from the peace of mind that comes with knowing that you won’t be charged an arm and a leg in overdraft fees.
There are a number of options when it comes to PNC small business checking accounts. You can compare the different options available here.
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Small Business Bank Reviews
When searching for the best bank for your small business, it can be helpful to scour the internet for small business bank reviews. Small business bank reviews can help you compare different best banks for small business accounts and hear opinions and real life experiences from clients of these best banks for small businesses.
How the Best Bank for Small Business Can Help Your Company Succeed
Whichever best bank for small business you choose, finding a small business account with little to no fees should be your number one priority. There are a number best banks for small business accounts out there, all offering different perks and benefits.
Whether you choose Chase small business checking, Wells Fargo small business checking, PNC small business checking, or a local bank or credit union, the right small business bank account is an essential feature to help your company succeed.
AdvisoryHQ (AHQ) Disclaimer: Reasonable efforts have been made by AdvisoryHQ to present accurate information, however all info is presented without warranty. Review AdvisoryHQ’s Terms for details. Also review each firm’s site for the most updated data, rates and info. Note: Firms and products, including the one(s) reviewed above, may be AdvisoryHQ's affiliates. Click to view AdvisoryHQ's advertiser disclosures.
AdvisoryHQ (AHQ) Disclaimer:
Reasonable efforts have been made by AdvisoryHQ to present accurate information, however all info is presented without warranty. Review AdvisoryHQ’s Terms for details. Also review each firm’s site for the most updated data, rates and info.
Note: Firms and products, including the one(s) reviewed above, may be AdvisoryHQ's affiliates. Click to view AdvisoryHQ's advertiser disclosures.