Author Topic: Best business checking account?  (Read 4200 times)

jeromedawg

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Best business checking account?
« on: October 16, 2017, 11:42:34 PM »
Hey all,

With my wife and I looking at her parents' business checking account while they're gone, we've noticed they get charged tons of stupid fees and that keeping the money at this bank itself is a money drain on them. I think they pay anywhere between $40-60+ that goes to all sorts of fees at the bank they're at!

Any suggestions on a good business checking account to go with where a priority would be in-person service with a good number of banks around they can access here in Southern California? They do both cash and check deposits and would likely have trouble trying to use a phone to deposit checks... I was looking at US Bank Silver Business Package: https://www.usbank.com/small-business/checking/silver-business-package.html but wanted to see what some of you might use/recommend.

chasesfish

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Re: Best business checking account?
« Reply #1 on: October 17, 2017, 06:55:43 AM »
You need to request an account analysis statement from their current bank.  Business accounts are priced based on total activity (number of items) plus any special technology things they're using, like ACH and Wire Service.

Most banks provide small business accounts for free or with minimal qualifiers if the total item count is below 500.

jeromedawg

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Re: Best business checking account?
« Reply #2 on: October 17, 2017, 10:14:55 AM »
You need to request an account analysis statement from their current bank.  Business accounts are priced based on total activity (number of items) plus any special technology things they're using, like ACH and Wire Service.

Most banks provide small business accounts for free or with minimal qualifiers if the total item count is below 500.

We sort of have an idea of their activity per statements provided from the current bank. Generally they don't exceed 150 transactions (it's closer to 130) per month. Cash deposits may vary pretty widely though but they do quite a bit of check-writing. Even if they got the US Bank Silver Business package and exceeded the limits for cash units and free transactions, I'm pretty sure they wouldn't be paying anywhere close to $40-60 per month.

They are using credit card readers/swipe machines but I think those are provided by another vendor and they just have the direct deposits go into this account.
« Last Edit: October 17, 2017, 10:22:00 AM by jeromedawg »

Hotstreak

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Re: Best business checking account?
« Reply #3 on: October 17, 2017, 05:14:43 PM »
You need to request an account analysis statement from their current bank.  Business accounts are priced based on total activity (number of items) plus any special technology things they're using, like ACH and Wire Service.

Most banks provide small business accounts for free or with minimal qualifiers if the total item count is below 500.

We sort of have an idea of their activity per statements provided from the current bank. Generally they don't exceed 150 transactions (it's closer to 130) per month. Cash deposits may vary pretty widely though but they do quite a bit of check-writing. Even if they got the US Bank Silver Business package and exceeded the limits for cash units and free transactions, I'm pretty sure they wouldn't be paying anywhere close to $40-60 per month.

They are using credit card readers/swipe machines but I think those are provided by another vendor and they just have the direct deposits go into this account.


Business accounts are a product where all costs are shown up front, and you pay based on what you use.  First find out what the current bank is charging them for, then compare to other banks pricing (or consider cutting back on expensive services). Cash can sneak up on people who don't realize that there'S a substantial charge on their "free" account when they deposit too much of it.

jeromedawg

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Re: Best business checking account?
« Reply #4 on: October 17, 2017, 05:36:27 PM »
You need to request an account analysis statement from their current bank.  Business accounts are priced based on total activity (number of items) plus any special technology things they're using, like ACH and Wire Service.

Most banks provide small business accounts for free or with minimal qualifiers if the total item count is below 500.

We sort of have an idea of their activity per statements provided from the current bank. Generally they don't exceed 150 transactions (it's closer to 130) per month. Cash deposits may vary pretty widely though but they do quite a bit of check-writing. Even if they got the US Bank Silver Business package and exceeded the limits for cash units and free transactions, I'm pretty sure they wouldn't be paying anywhere close to $40-60 per month.

They are using credit card readers/swipe machines but I think those are provided by another vendor and they just have the direct deposits go into this account.


Business accounts are a product where all costs are shown up front, and you pay based on what you use.  First find out what the current bank is charging them for, then compare to other banks pricing (or consider cutting back on expensive services). Cash can sneak up on people who don't realize that there'S a substantial charge on their "free" account when they deposit too much of it.

So this particular bank charges them for each check they deposit and each check they write. I think there's literally a fee for every type of transaction. There are no "freebies" that they give you like US Bank or many others who give a limit of 50, 100, 150 or more transactions. Of course, many of those are based on minimum amounts in the account but I think US Bank might be an exception. The "analysis fees" this current bank charges is a collection of all the fees they're assessed for every transaction they incur on the account whether it's a debit or credit. It's pretty awful.... I think they may resist change though because they've been "used to doing it this way" for a long time. I don't know how long they've been assessed these fees but the bank has undergone several name changes too in the past several years. They may have added these fees along with all that and now it's more of a money sink to even hold money at this bank.

chasesfish

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Re: Best business checking account?
« Reply #5 on: October 17, 2017, 07:18:22 PM »
Great!  I see you're in LA, so I don't run any risks of making comments that sound like I'm biased.  I work in this business but  we don't operate on the west coast, so I'll share my opinions: 

US Bank is a good institution and you should fit into their packaged product you mention.  The 2nd tier banks (after the Big 4 of Citi, BofA, Wells, and Chase) tend to have technology that's close to or as good as the Big 4 without just being awful impersonal humans.  Avoid Bank of the West too, they're a subsidiary of BNP Paribas and come with all the same joys as dealing with a Big 4.

The community banks are okay, they tend to lack the technology business clients want.  Scale matters in that business.

katsiki

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Re: Best business checking account?
« Reply #6 on: October 17, 2017, 07:49:02 PM »
This may not fit your scenario but I wanted to mention it.  I have recently been chasing business bank bonuses.  At this time, Chase and BOA have promos going.  Both are $200 if I remember correctly.  Check out doctorofcredit.com for more details if you are interested.

This may a crazy idea for a "real" business but again might be worth looking into.

Thinkum

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Re: Best business checking account?
« Reply #7 on: October 17, 2017, 09:04:27 PM »
We are in the market for a business checking account as well. While I liked US Bank, I cannot justify the price per transaction over their allowed amount per month. As you (OP) stated, it would add up quick. Since we do not need a brick & mortar, we are going with Spark Business from Capital One. Free checking, no transaction limits at all. The only downside is that if you need to deposit cash, it might be harder since here in CA, Capital One has no B&M locations.

Heroes821

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Re: Best business checking account?
« Reply #8 on: October 18, 2017, 09:56:41 AM »
I use chase for my business account.  I've had it 14 months now and I have not seen a single fee.  I've also had the balance sit below $1000 several times for 30+ days.

Downside, my current state has no chase banks at all.

jeromedawg

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Re: Best business checking account?
« Reply #9 on: October 18, 2017, 01:36:01 PM »
I use chase for my business account.  I've had it 14 months now and I have not seen a single fee.  I've also had the balance sit below $1000 several times for 30+ days.

Downside, my current state has no chase banks at all.

So you're the lowest level? And you don't exceed 100 transactions presumably?

Heroes821

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Re: Best business checking account?
« Reply #10 on: October 18, 2017, 01:54:53 PM »
I use chase for my business account.  I've had it 14 months now and I have not seen a single fee.  I've also had the balance sit below $1000 several times for 30+ days.

Downside, my current state has no chase banks at all.

So you're the lowest level? And you don't exceed 100 transactions presumably?

That is accurate. Looks like .40 cents per transaction over 100 per month on my current account. That being said from a spending perspective my Chase business INK card does not appear to have a transaction limit so if lots of transactions are outgoing that may be a solution.

jeromedawg

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Re: Best business checking account?
« Reply #11 on: October 18, 2017, 01:57:03 PM »
I use chase for my business account.  I've had it 14 months now and I have not seen a single fee.  I've also had the balance sit below $1000 several times for 30+ days.

Downside, my current state has no chase banks at all.

So you're the lowest level? And you don't exceed 100 transactions presumably?

That is accurate. Looks like .40 cents per transaction over 100 per month on my current account. That being said from a spending perspective my Chase business INK card does not appear to have a transaction limit so if lots of transactions are outgoing that may be a solution.

Makes sense if you use credit card for business-related payments. With my in-laws they write checks left and write. But they do use their credit card for grocery purchases too - we should probably open a Chase Business Ink for them although I wish there were something a little better for grocery purchases.

Heroes821

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Re: Best business checking account?
« Reply #12 on: October 18, 2017, 02:24:45 PM »
I use chase for my business account.  I've had it 14 months now and I have not seen a single fee.  I've also had the balance sit below $1000 several times for 30+ days.

Downside, my current state has no chase banks at all.

So you're the lowest level? And you don't exceed 100 transactions presumably?

That is accurate. Looks like .40 cents per transaction over 100 per month on my current account. That being said from a spending perspective my Chase business INK card does not appear to have a transaction limit so if lots of transactions are outgoing that may be a solution.

Makes sense if you use credit card for business-related payments. With my in-laws they write checks left and write. But they do use their credit card for grocery purchases too - we should probably open a Chase Business Ink for them although I wish there were something a little better for grocery purchases.

The nice thing about Chase Business INK right now is the 80,000 bonus points.  Also you can refer other businesses to the card and if they get it you as the referrer get 20,000 more bonus points.
All points on this chase card count for 1.25 more points when used "on travel" so 80k points is $1000 on travel.

Also office supplies and telecomm purchases are 3% point ratios.

https://creditcards.chase.com/credit-cards/small-business/ink-business-preferred?iCELL=61GF


jeromedawg

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Re: Best business checking account?
« Reply #13 on: October 19, 2017, 04:51:44 PM »
I use chase for my business account.  I've had it 14 months now and I have not seen a single fee.  I've also had the balance sit below $1000 several times for 30+ days.

Downside, my current state has no chase banks at all.

So you're the lowest level? And you don't exceed 100 transactions presumably?

That is accurate. Looks like .40 cents per transaction over 100 per month on my current account. That being said from a spending perspective my Chase business INK card does not appear to have a transaction limit so if lots of transactions are outgoing that may be a solution.

Makes sense if you use credit card for business-related payments. With my in-laws they write checks left and write. But they do use their credit card for grocery purchases too - we should probably open a Chase Business Ink for them although I wish there were something a little better for grocery purchases.

The nice thing about Chase Business INK right now is the 80,000 bonus points.  Also you can refer other businesses to the card and if they get it you as the referrer get 20,000 more bonus points.
All points on this chase card count for 1.25 more points when used "on travel" so 80k points is $1000 on travel.

Also office supplies and telecomm purchases are 3% point ratios.

https://creditcards.chase.com/credit-cards/small-business/ink-business-preferred?iCELL=61GF

I was even thinking to sign up for the Chase Business Ink Preferred for the 80k points, then downgrade it just before a year comes around to avoid the $95 annual fee. The Business Ink Cash card gets you 5% on office supplies, internet, phone, etc. and there's no annual fee. Since my in-laws don't travel much (and even when they do they go through tour groups rather than buying individual flights/hotels/cars, of which the major benefit of having the Preferred portal access is that those things are discounted even more), I think it wouldn't make sense for them to pay the annual fee for what they're not really going to take advantage of.  But they'll at least get those 80k points which they can then cash out.

Rubic

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Re: Best business checking account?
« Reply #14 on: October 20, 2017, 07:17:48 AM »
Wells Fargo is offering a $300 bonus for new business checking
accounts:

https://www.doctorofcredit.com/wells-fargo-300-branch-business-checking-bonus/

Earlier this year I took advantage of the $250 bonus on their personal
checking.