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NerdWallet Review
no Bank of America, N.A., member FDIC
Bank of America's business checking account differentiates itself from national and regional brick-and-mortar competitors by offering free, unlimited electronic transactions, high cash deposit limits, and three different account opening options.
Bank of America offers two checking accounts for small businesses: Business Advantage Fundamentals™ Banking and Business Advantage Relationship Banking. Although this review includes information on both accounts, the star rating applies only to the Business Advantage Fundamentals™ account.
With 4,200 stores in 37 states plus Washington, D.C. Bank of America business accounts are a digital option for small business owners who want to access banking in person.
" MOST: The best checking accounts for businesses
The Bank of America Business checking account is best for small business owners who:
They want to be able to do some of their banking in person.
You don't mind paying a monthly fee, or you may qualify to waive it.
Running a cash-intensive business.
You would like to use additional banking or financial services from your bank in the future.
Advantages and disadvantages
advantage
Unlimited free electronic transactions.
High cash deposit limits.
Multiple ways to open an account: online, over the phone, or in person.
Access to 16,000 Bank of America ATMs and 4,200 US branches.
It includes the Business Advantage 360 online banking platform with Mobile Banking, an integrated tool for monitoring cash flow, paying bills, and depositing checks via mobile phone.
In contrast
There is no such thing as a free business checking account.
High additional costs.
Non-Bank of America ATM Fees: $2.50 for US ATMs, $5 for International ATMs (additional fee may be charged by the ATM owner).
Bank of America Business Checking Account Summary
Basics of Business Advantage Banking | Commercial Advantage Banking Relationship | |
Monthly Quota: | $16 (waived with a combined average monthly balance of $5,000 or spend of $250 on eligible net new purchases with a business debit card)* | $29.95 (waived with a combined average monthly balance of $15,000)* |
Minimum opening deposit requirement: | 100 $ | 100 $ |
APY: | none | Prices vary by location. |
Protocol: | Unlimited, fee-free electronic transactions (ACH, debit card transactions, electronic direct debits, mobile check deposit deposits, remote deposit online or at a Bank of America ATM). Up to 200 free non-electronic transactions (paid cheques, other direct debits, deposited items), i.e. 45 cents per item. | Unlimited free electronic transactions. Up to 500 non-electronic transactions free, so 45 cents per item. |
Cash deposits: | Up to $7,500 free, so 30 cents for every $100 deposited. | Up to $20,000 free, so 30 cents for every $100 deposited. |
Prima: | none | none |
*You can also waive the monthly fees for each of these accounts by becoming a member of Bank of America's Preferred Rewards for Business program. To qualify, you must have an active commercial checking account with Bank of America and a three-month combined average daily balance of at least $20,000 in qualifying Bank of America commercial deposit accounts and/or Merrill commercial investment accounts.
How the Bank of America business checking account works
Account Settings:Bank of America offers two main commercial checking accounts: Business Advantage Fundamentals Banking and Business Advantage Relationship Banking.
In addition to these top options, the bank offers business verification with full analysis for businesses with high balances and growing cash management needs, and escrow for utility companies.
Site availability:Bank of America has 4,200 branches and 16,000 ATMs in 37 states plus Washington, D.C. The bank does not have branches or ATMs in the following states: Alabama, Alaska, Hawaii, Louisiana, Mississippi, Montana, Nebraska, North Dakota, South Dakota, Vermont, West Virginia, Wisconsin and Wyoming.
However, unlike some traditional banks, your business does not have to be in a state with a Bank of America branch to be eligible for a business checking account. In fact, you can use Bank of America's website to find rate and fee information for each of the 50 states plus Washington, D.C.
How to apply:Apply for a business checking account with Bank of America by completing and submitting an application online, by calling a small business bank clerk, or in person at a branch.
Needed information:
Basic information about you and your company, including your social security number, date of birth, company name, date of incorporation of your company,Employee Identification Numberand founding situation.
Bank of America also requires basic personal information (including date of birth and social security number) from all owners who own 25% or more of the company and from all controlling managers (e.g., chief financial officer, managing member).
Required Documents:
Company incorporation document (varies by company type) and a government-issued identification document for you, all owners with at least a 25% interest in the company and all controlling managers.
If your company with aDBA oder "doing business as",is a fictitious name, business name, or fictitious name, Bank of America requires that you provide the appropriate certification showing your assumed business name.
If you're applying for a Bank of America business checking account online, fax or email your receipts to the bank once you've completed your application. After applying online, you have 11 days to submit your documents before your application will be rejected and you will have to resubmit your application. Once Bank of America receives your application and supporting documents, your account can be approved and opened in less than 24 hours.
" MOST: What do you need to open a business account?
Next Steps:Once your account is approved, you can make your first deposit by transferring funds from an existing Bank of America or other bank account, using a Visa or MasterCard debit card, check, or money order. You can also sign up for online banking, download the Bank of America mobile app, and start managing your account.
If you ordered a business debit card or checks with your initial application, you should receive them within five to seven business days. You can also order a debit card for you and your employees by logging into internet banking, calling Bank of America Small Business Customer Service, or visiting a branch.
Where Bank of America Business Verification excels
Unlimited Free Electronic Transactions:Both Bank of America business checking accounts offer unlimited free electronic transactions, including ACH transactions, debit card transactions, electronic withdrawals, and deposits via mobile check deposit, online remote deposit, or at a Bank of America ATM.
This feature sets Bank of America's business checking account apart from brick-and-mortar competitors in particular, since most traditional banks have a monthly limit that covers both electronic and non-electronic transactions.
Cash deposits:The Business Advantage Fundamentals account includes up to $7,500 in free cash deposits and the Business Advantage Relationship account includes up to $20,000 in free cash deposits per month.
Compared to other entry-level business checking accounts, the $7,500 limit of the Business Advantage Fundamentals account sets it apart from traditional competitors. For example, the Chase Business Complete Checking Account℠, the Wells Fargo Initiate Business Checking Account, and the Capital One Spark Basic Business Checking Account each have a fee-free cash deposit limit of $5,000.
Additionally, while the $20,000 limit of the Business Advantage Relationship account matches that of second-rate business check offerings from traditional national competitors such as Chase, Wells Fargo and Citibank, it exceeds that of other competitors such asamerican bankjBanco de Huntington.
Digital tools:Bank of America business checking accounts provide access to digital tools such aszelle, Cash Flow Monitor, and Business Advantage 360 - Bank of America's online banking platform for small businesses, which allows you to view and manage bank statements and account transactions, pay bills, and Activities can download QuickBooks and customize account notifications.
Bank of America's online banking is fully integrated with the Cash Flow Monitor tool, which allows you to track credits and debits, get cash flow forecasts based on scheduled transactions, and get help from small business experts. You can also connect 3rd party apps to Cash Flow Monitor dashboard including ADP,Online speed books, Google Workspace, Google Analytics, Expensify und TurboTax.
Small Business Services Package:If you prefer to use the same bank for your future financial needs, Bank of America offers a variety of additional products for small business owners, including business savings accounts, payment processing, credit cards, and business loans.
In addition, when you join Bank of America's Preferred Rewards for Business program, you can receive discounts on other services offered by the bank and waive the monthly fees for Business Advantage Fundamentals or Business Advantage Relationship accounts.
For example, Preferred Rewards entry-level members can access a 25% reward bonus on qualifying business credit cards, a 5% interest rate increase on Business Advantage savings accounts, and a 0.25% interest rate rebate on new Business Advantage lines of credit, term loans. and secured loans.
" MOST: Best banks for small loans
Where Bank of America's business review fails
Monthly Fees:Both Bank of America business checking accounts have monthly fees ($16 and $29.95 respectively) for Business Advantage Fundamentals and Business Advantage Relationship accounts, respectively.
While each account offers some sort of waiver of these fees, there are online and offline competitors that offer thisfree business accountsif you do not want to meet these requirements or have to budget for these fees on an ongoing basis.
High additional costs:Bank of America charges fees for non-Bank of America ATM withdrawals: $2.50 for US ATMs and $5 for international ATMs; In addition, the ATM owner may charge an additional fee.
Bank of America also charges a $10 overdraft fee, which is low for a brick-and-mortar bank, and variable fees for outgoing transfers. It's also important to note that while Bank of America doesn't cover fees for payment interruptions, incoming wire transfers, check imaging services, check and statement copying, and ATM and debit card replacements for cardholders for business benefit relationships, all of these services have associated fees for business advantages. Key Account Holder.
While these types of fees are not uncommon on commercial checking accounts, particularly those at traditional banks, most areChecking accounts for online businessescharge much less fees.
Compare company checking accounts
Bank of America Business Advantage Fundamentals™ Banca Member FDIC | US Bank Silver Commercial Girokonto Member FDIC | Chase Business℠ Entire bank Member FDIC |
|---|---|---|
NerdWallet Review | NerdWallet Review | NerdWallet Review |
Learn more | Learn more | Learn more |
monthly quota$ 16,00 Rejected with a minimum balance of $5,000 | monthly quota$ 0 | monthly quota$ 15,00 Rejected with a minimum balance of $2,000 |
APYN / D | APYN / D | APYN / D |
prima200 $ See listing page for details. | prima40 $0 Requirements to qualify | prima30 $0 Requirements to qualify |
FAQs
Is Bank of America a good business bank? ›
Their Business Advantage Relationship Rewards Program caters to and rewards their dedicated customers. Their major drawbacks include low interest rates - even for Relationship Rewards customers - and a large number of fees. Overall, though, Bank of America is a great choice for businesses large and small.
How long does it take for Bank of America to approve a business account? ›Your application will be processed in 1 to 2 business days. We'll send you either an email or letter letting you know if you are approved for your account. You will receive your account documents via U.S. Mail within 7-10 business days.
Which bank is best for a business account? ›- Best Overall: Chase.
- Best for Online-Only Checking: Axos Bank.
- Best Credit Union: Navy Federal Credit Union.
- Best Number of Branches: Wells Fargo.
- Best for Business Analysis: M&T Bank.
- Best Fee-Free Brick-And-Mortar Checking: US Bank.
You can open a business bank account once you've gotten your federal EIN. Most business bank accounts offer perks that don't come with a standard personal bank account.
Is bofa better or Chase? ›When it comes to savings accounts, both banks offer the same interest rate, but Chase comes out slightly ahead with no initial deposit requirement and a lower monthly service fee (that's also easier to get waived).
What is the most trusted bank in America? ›The Lifestory Research 2022 America's Most Trusted® Bank Study found Chase the most trusted bank. The America's Most Trusted® Study is a large-scale survey of consumers in the United States that seeks to identify the brands that people trust the most within their respective industries.
Can you be denied a business bank account? ›Banks typically require that you fill out an application when you open a business account. If you don't complete the application or provide all of the required information, the bank may deny your request.
Is it hard to get approved for a business bank account? ›Though it's fairly easy to open a basic business bank account with weak credit, applying for commercial credit lines based on a poor personal credit history is difficult, said Verrett. As Verrett has learned helping businesses obtain financing, a variety of personal credit factors come into play.
Does Bank of America approve instantly? ›Bank of America's Instant-Use Policy
Bank of America offers instant card approval and use to existing customers who open a new card via the Bank of America mobile app. Upon approval, you will be able to upload your credit card number to your digital wallet.
It is important to have a separate account for your business so that you can prove that you and your business are separate financial entities in the event of a lawsuit or large liability. Anyone who forms an LLC should get a business bank account to help maintain liability protection for the company's members.
Is it better to have a business account with a credit union or bank? ›
Because credit unions are not-for-profit, they generally charge fewer (or lower) fees on their business accounts. In addition, they provide more value to their members in the form of offering lower loan rates and paying higher dividends on deposit accounts. Local market knowledge.
How much money do you need in a business bank account? ›Banks often require you to maintain a daily balance of $1,500 to avoid any monthly maintenance fees. The majority of basic business checking accounts will have monthly fees ranging from $10-$50.
How much does it cost to open a bank of America business account? ›| Business Advantage Fundamentals Banking | |
|---|---|
| Monthly fee: | $16 (waived with a $5,000 combined average monthly balance or by spending $250 in net new qualifying purchases on a business debit card)* |
| Minimum opening deposit requirement: | $100 |
| APY: | None |
The first thing you'll need is an employer identification number — also called an EIN, FEIN or tax identification number. The IRS issues and manages your EIN. If you haven't filed for a tax ID number, you may still be able to open a business bank account with your personal Social Security number.
What documents are required to open a business bank account? ›- A federal tax ID number for the business, such as an employer identification number.
- A combination of your Social Security number and state or local authority documents that show you've formed a legal entity, such as a limited liability company (LLC)
The bottom line: Wells Fargo beats Bank of America when comparing checking accounts, but you may prefer Bank of America if you want to open a saving account. For CDs, it'll likely depend on whether you prefer a variety of terms or higher rates.
Is Bank of America still a good bank? ›Bank of America is best for customers who want a reliable digital banking experience, the option to visit a branch location and a full array of savings products and other financial services. Especially if having all your accounts under one institutional umbrella is a priority, Bank of America could be a good fit.
Why Bank of America is better than other banks? ›Pros Explained. Higher rates and lending discounts via Preferred Rewards – Bank of America rewards customers for having a larger relationship with the bank with higher rates, discounts on lending products, and higher rewards on certain credit cards.
What are the top 3 banks in America? ›- JPMorgan Chase. Chase Bank is the consumer banking division of JPMorgan Chase. ...
- Bank of America. Bank of America serves about 67 million consumers and small business clients worldwide. ...
- Citigroup. ...
- Wells Fargo. ...
- U.S. Bancorp. ...
- PNC Financial Services. ...
- Truist Financial. ...
- Goldman Sachs.
| Rank | Profile | Type |
|---|---|---|
| 1. | Industrial & Commercial Bank of China | Bank |
| 2. | Agricultural Bank of China | Bank |
| 3. | China Construction Bank Corp | Bank |
| 4. | Bank of China | Bank |
What bank do millionaires use in USA? ›
Bank of America, Citibank, Union Bank, and HSBC, among others, have created accounts that come with special perquisites for the ultrarich, such as personal bankers, waived fees, and the option of placing trades. The ultrarich are considered to be those with more than $30 million in assets.
Why would I be turned down for a business account? ›The reasons for refusing account applications could be one of the following; Industry type deemed to be high risk. Personal or Business adverse/poor credit. Registered location of company.
Does a business bank account affect my credit score? ›Opening a business checking or savings account will not affect your credit score in any way - because after all, you are not dealing with credit. However, some banks may see your poor credit as proof that you are unreliable - in which case, they may not give you an account.
Can you open a business bank account without a DBA? ›Sweeney added that most banks require a certified copy of a DBA to open a business bank account, since entrepreneurs aren't allowed to use their personal bank account under their business name. “Filing for a DBA allows entities to do business under another name without having to form a new organization,” Sweeney said.
Can you use an EIN to get a credit card? ›Yes, it's possible to get a business credit card without an SSN. Some card issuers will allow you to use an EIN, which is like a Social Security number for your business, to apply for a card instead of using your personal information.
How quickly can I open a business bank account? ›It'll usually take 1 to 4 weeks to open a business account, as the bank will need to carry out a number of checks to confirm your identity, business and any directors registered to your company. Several factors can speed up the process such as: If you're already registered at the bank with a regular current account.
How fast can I get a business bank account? ›Opening a business account is easy; you can typically apply in minutes as long as you have the right details and documents, especially if you open an account online.
Which FICO score does Bank of America use? ›What score model was used to calculate my score? Your score in Online Banking is a FICO® Score 8 based on TransUnion Data to manage your account and that is what Bank of America shares with you.
Is Bank of America a hard inquiry? ›It is likely Bank of America will make a hard inquiry on at least one of your credit reports. To get a good idea of whether or not you should risk a hard inquiry, attempt Bank of America's pre-approval process. A preapproval will not normally make a hard inquiry against your credit.
What credit report does Bank of America pull? ›Bank of America will usually pull your Experian credit report. If you freeze your Experian report they will pull your TransUnion credit report. See real-time data in our Credit Card Database.
How much does it cost to open a Bank of America business account? ›
| Business Advantage Fundamentals Banking | |
|---|---|
| Monthly fee: | $16 (waived with a $5,000 combined average monthly balance or by spending $250 in net new qualifying purchases on a business debit card)* |
| Minimum opening deposit requirement: | $100 |
| APY: | None |
Bank of America offers startup-friendly services such as access to their credit and debit cards, funding options, and industry-leading customer support.
Is Bank of America a stable bank? ›High Ratings Reflect Franchise: BAC continues to hold leading or near-leading market shares in many categories across its segments, including a leading market share in retail deposits and small business lending in the U.S. The firm continues to hold a top market position in client assets, deposits and loans within its ...
Is it worth getting a business bank account? ›It makes your business more trustworthy
Some banks won't lend you money for your business unless you have a separate business account. So if you think you'll need extra funds for getting started or scaling up, it's best to get a business account up and running.
Bank of America Core Checking Account has a $12 Monthly Maintenance fee which is waived with at least 1 direct deposit of $250 each month or maintain a minimum daily balance of $1,500 or more.
What documents are needed for a business bank account Bank of America? ›- Name and address of business.
- Business tax ID number: Business Employer Identification Number (EIN) provided by the IRS in the following 9-digit format XX-XXXXXXX, or, if the LLC is a single member LLC, the EIN of the company or the Social Security Number (SSN) of the single member.
Bank of America is best for customers who value ease of access over higher interest rates. It may be particularly good for customers who want to: Be able to bank in person. Have easy access to bank ATMs.
Why is Bank of America so good? ›It offers a wide variety of financial products -- including checking and savings accounts, credit cards, loans and investing services -- as well as thousands of retail locations and ATMs across the country. Bank of America also features a strong online experience with a robust website and a fully featured mobile app.
Why is bofa better than its competitors? ›Other peoples' money
Every one of its competitors does too. But what distinguishes Bank of America in this regard is that it has more noninterest-bearing deposits than any other bank in the United States. This advantage traces back to Bank of America's origin.
- Interest rates for savings and CD accounts lag behind other banks.
- $35 overdraft fee can be charged up to four times daily.
- High account balances are required to qualify for Preferred Rewards status.
What is the weakness of Bank of America? ›
Following are some of the weaknesses of the company: Low rate of income in the countries outside of the U.S: Bank of America gets 90% of its annual revenue from the banks in the United States. They receive only 10% of revenues from worldwide banks. Hence low rates of income occur in other nations.
Why is Bank of America closing so much? ›Both Wells Fargo and Bank of America were forced to temporarily close locations in late 2021 due to a labor shortage and a surge in COVID-19 infections, but now, they're shutting locations permanently.
Is it OK to have two business bank accounts? ›There isn't a limit on the number of bank accounts your business can have. In theory, you could open as many as you want, as long as your bank approves each application.