6 Best Internet Banks for Small Business to Open Checking Accounts Safely
Banking on the internet is what business is all about these days. Before choosing a bank for your company, you want to make sure you are getting the best rewards and services. Above all else, you want to make sure that your account is safe.
When searching for the best internet banks for small business, you may be inclined to go for those that offer you a substantial bonus and even cash for opening an account. However, you will find that sometimes the best offerings are in excellent service and reputation rather than hype.
Conduct a basic Google search, and it will show there are more institutions than you could ever evaluate. You need help finding the best internet banks for small business. Here is a list of the 6 greatest banks for start-up through medium-size companies.
1. Chase Bank
The Total Business Checking from Chase offers you a $200 bonus for opening an account online. Monthly fees for this account is only $15.00. However, they will waive this fee if you keep at least $1,500 in your daily balance. It is required that you open the account with at least $25.
Another perk to Chase is they offer you the flexibility to conduct 100 transactions each month for free. They allow up to $5,000 in deposits each month too without a service charge. Charges can accumulate from electronic transfers, though. For a small business, this account is perfect.
However, it is easy to see that you could potentially outgrow the parameters of this account quickly. Thankfully, Chase has numerous checking accounts to offer to any business size. It would be no problem to upgrade to the Platinum Business or another checking.
2. Capital One
Almost everyone has heard of Capital One and their famous slogan. Spark Checking account is perfect for the small business owner. Regrettably, they do not offer any sign-up bonuses. On the other hand, they do not charge a monthly service fee. Requirements to open an account are just $1.00.
There are no monthly limits either. Spark is a straightforward account with no bells and whistles, but they offer electronic invoicing and bill pay. Customers enjoy the 39,000 ATMs they have around the country. Moreover, there is no fee for transactions conducted through the ATM either.
If your business booms one day, you can still use this checking. Though, you may want to consider moving up to an interest-bearing account.
3. Bank of America
Bank of America has several offerings. Thus, their Business Fundamentals account is one of the best internet banks for small business. The monthly fee is $16. However, they will waive this fee if you keep a daily balance that does not go below $3,000 and a monthly balance that is at $5,000.
Fees are negligible compared to what this account offers. First, it is more suited for a company that has a high number of transactions or that will deposit a great deal of money into their account.
Also, be advised that there will be a service charge of 0.2% assessed on any deposits over $10,000. After the first 200 transactions, you will be charged $0.45 percent for each one.
There are some charges associated with this account. On the other hand, if you do a high number of deposits and transactions throughout the month, be prepared to spend some serious cash to accommodate those transactions with any bank.
Many companies love the fact that Bank of America is very user-friendly. They operate branches everywhere. The costs are sometimes more than justified.
Citibank offers a streamlined checking account that is $12 a month. Just like other banks on the list, they will waive this fee when you keep at least $5,000 in the account. When it comes to free transactions, you will get 250. Each additional transaction is billed at the cost of $0.30 each.
Any deposit over $10,000 in a month’s time has assessed a fee of 0.10 percent. Those who use a checking account for point-of-sale business will find that these little costs can add up fast. You can get unlimited transactions with your account.
Still, they offer the lowest per-transaction costs on the internet. This feature makes them a real contender to those who do point-of-sale revenue.
One thing that the new business owner needs is overdraft protection. With an account from Citizens, it comes complimentary. They offer the Basic Business Checking for those who just want a bank that they can count on. It is a simple account with no minimum balance requirements and no maintenance fees.
Though they are one of the best internet banks for small business, this account may not fit your needs as your business grows. Companies that do more than 175 transactions per month or have deposits that are more than $5,000 will find that the fees are high with this checking.
6. Iberia Bank
Iberia Bank is not one of the biggest names on the list. Nonetheless, their options are worthy of a second glance. Unlike the other banks, everyone starts out at the same level here. They monitor your account activity and will raise you up to the next tier of checking as they see fit.
As one of the best internet banks for small business, they do not have a monthly fee and no account balance minimum. On top of this, they give you 500 free transactions each month. There is no need to worry if you are going over your allotted amount.
If your account has more than $10,000 in deposits or transactions over 500 for two successive months, they will automatically upgrade you to the next tier.
Finding an Account that Works for You
Choosing the first bank you come across is not the smartest way to open a checking account. Never use a personal checking to conduct your business transactions, no matter how small your company.
Business and personal finances can be a mess to keep straight, especially when they are both on the same account. Take some time and find the best internet banks for small business that works best for you. Do not be lured by those free or introductory offers. You must be aware of all the terms and conditions up front.