Best Business Checking Accounts for July 2024
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Best Business Checking Accounts for July 2024
9 min read
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By: Tyler Richards

 

Business checking accounts are transactional accounts that can be opened at a bank or credit union. They are different from other accounts, such as savings accounts, in that they are intended for day-to-day use, like paying bills or other daily transactions. They are not intended to hold money for the long term, as is the case with CDs, and withdrawals are not limited, such as with savings and money market accounts. In some instances, checking accounts may pay interest, but because the funds are readily available, the rates offered tend to be on the lower end of the spectrum. Based on our research, the national average rate is currently at 0.06% for checking accounts. There are some checking accounts available that offer high yields, with the best checking account currently yielding 3.93%. Here are some of the best business checking accounts we've identified for July 2024:

 

 

Features Offers

BankFinancial logo
Bank Grade
Top 1% rate
3.93% APY
IOLTA Checking
Business Checking by BankFinancial
Poppy Bank logo
Bank Grade
Top 1% rate
3.46% APY
Poppy Attorney Client Trust (IOLTA)
Business Checking by Poppy Bank
Bank of Burlington logo
Bank Grade
Top 1% rate
2.79% APY
Commercial Interest Checking
Business Checking by Bank of Burlington
Bank of Utah logo
Bank Grade
Top 1% rate
2.72% APY
Public Fund Advantage
Business Checking by Bank of Utah
Blue Foundry Bank logo
Bank Grade
Top 1% rate
2.65% APY
Blue Carbon Edge Business Checking
Business Checking by Blue Foundry Bank
Seattle Bank logo
Bank Grade
Top 1% rate
1.80% APY
Business Interest Checking
Business Checking by Seattle Bank
Adams Bank & Trust logo
Bank Grade
Top 1% rate
1.65% APY
Smart Business
Business Checking by Adams Bank & Trust
Adams Bank & Trust logo
Bank Grade
Top 1% rate
1.65% APY
Business Essential
Business Checking by Adams Bank & Trust
Adams Bank & Trust logo
Bank Grade
Top 1% rate
1.65% APY
Business Interest
Business Checking by Adams Bank & Trust

 

What is a business checking account?

 

 

Business checking accounts are transactional accounts that can be opened at a bank or credit union and allow you to access your money without limitations. They usually include a debit card, check-writing, as well as online banking. Business checking accounts are a bit different than personal checking accounts because businesses have different needs than individuals. Business owners are busy individuals and need to focus on operating and growing their businesses. As businesses tend to process many transactions, many banks will assess monthly service charges based on the number of transactions processed per month. It is important to do the research to find the best business checking account possible. Based on our research, the average yield for a business checking account is 0.06% with the best business checking account currently yielding 3.93%

 

Why should you open a business checking account? 

 

 

Business checking accounts can be used to pay vendors, employees, bills, etc. They are essential to the day-to-day operation of any and all businesses with little to no withdrawal limitations such as with savings and money market accounts. Most business checking accounts also offer debit cards and access to online banking and mobile apps to make processing transactions as easy and streamlined as possible.

 

Is a business checking account safe?

 

Generally speaking, yes, as long as your bank is FDIC insured or your credit union is NCUA insured and your account falls within the limits of up to $250,000 per depositor, per account ownership type, and per financial institution, there isn’t much to worry about as your money is safe in case of a bank failure.

 

 

Analyzing things further, in an inflationary environment such as the one we find ourselves in now, if your money is not growing at the same or greater rate as inflation, the purchasing power of your money is decreasing. This means that your dollar buys less and less over time. This makes it even more important to use the information we've gathered on our website to find the best business checking account available. The best business checking account is yielding 3.93%, which helps your money keep up with inflation while at the same time providing you with the benefits of having a checking account.

 

How to select the best business checking account

 

    

Choosing the best business checking account isn’t always a straightforward decision. There are many different types of business checking accounts with varying perks and features. When shopping around for the best checking account, here are the most important factor to consider:

 

  • Fees - As with any financial product, account fees can chip away at your account. The main fees associated with business checking accounts are generally the monthly service charges and per item fees beyond the allowed items included. If your business checking account comes with a debit card, out-of-network fees may be assessed if you use an ATM machine that is not associated with your bank. It is important to understand what fees may be assessed and why.

 

 

  • Account Minimums - Some banks may require you to maintain a minimum average daily balance to avoid monthly service charges or to qualify for specific rates.

 

 

  • Bonuses - Some banks offer bonuses for opening and funding a business checking account. Unless you want to use a specific bank, it might be beneficial to find a bank that offers account opening bonuses.

 

 

  • Cash Bank Rewards - Some banks offer cash back rewards that may be either a specific dollar amount or a percentage of a transaction for example.

 

 

  • Annual Percentage Yield (APY): The total interest you receive on money in your checking account over the course of a year is expressed as an APY. The higher the APY on your account, the harder your money that is in your checking account, will work.

 

   

Pros and cons of having a business checking account

 

Direct Deposit is available for most accounts to pay employees easily and conveniently.Many business checking accounts tend to assesses higher monthly service charges or charge per transaction based on volume.
You can write checks or use your debit card to pay bills and withdraw money from an ATM.There are overdraft fees, account minimum fees, etc.
Many business checking accounts allow peer-to-peer transactions.Not all accounts offer free checks.
Funds are FDIC or NCUA insured up to the limits allowed by each program.Checking accounts typically earn little to no interest.
They are a convenient and easy way to pay bills, vendors, employees and other types of transactions.

 

 

 

Alternatives to business checking accounts

 

  • Business Money Market Accounts: A business money market account is a type of interest-bearing account available at banks and credit unions. They are similar to business savings accounts; however, one significant difference is that certain business money market accounts also provide some checking-writing features.

 

  • Business Savings Accounts: A business savings account is a deposit account that guarantees principal and pays interest. While business savings account rates at large traditional banks typically stay close to zero, some online banks offer rates higher than the average rate of !AvgRateBusinessSavings! our research has identified.

 

  • Business Certificates of Deposit (CDs): Banks and credit unions both offer a type of savings account known as a business certificate of deposit, or CD. Generally speaking, you commit to leaving your money in the Business CD for a predetermined period without taking any withdrawals. Early withdrawals may incur penalties, depending on the type of CD.

 

 

Frequently Asked Questions

 

 

What is an important feature to have with your business checking account?
How do I qualify for a business checking account bonus?
Is it true that online banks pay more interest than traditional banks?
Is it necessary for me to pay taxes on interest earned in my business checking account?
Is it safe to put my money in a business checking account?
Can I have multiple business checking accounts?
What are non-sufficient funds fees?
Which business checking account is the best?

 

Additional offers that might be useful

 

 

Business Checking

If you are a self-employed individual or have your own small business, having the right business checking account to meet your business needs is crucial. We've reviewed hundreds of business checking accounts and have identified the best ones available. Here are a few to consider:

 

Seattle Bank
Business Interest Checking
Business Checking by Seattle Bank
Bank Grade
B+
APY
1.80%
Avg. user rating
3.50
Why we chose it?
What to watch for
Adams Bank & Trust
Smart Business
Business Checking by Adams Bank & Trust
Bank Grade
B+
APY
1.65%
Why we chose it?
What to watch for

 

Senior Checking

Since many seniors are retired and live on fixed incomes, managing their money is very importance. It's essential to select a bank account that's senior-friendly and offers benefits such as free checks, higher-than-average APY and no monthly service charges. Additionally, many seniors might like a bank with a wide network of branches that makes it convenient for them to visit when they need to process a transaction. Here are some of the best senior checking accounts we've identified based on our research:

 

1st Bank Yuma
1st Senior Checking
Senior Checking by 1st Bank Yuma
Bank Grade
B+
APY
2.96%
Avg. user rating
1.00
Why we chose it?
What to watch for
Adams Bank & Trust
Gosmart 50 Checking
Senior Checking by Adams Bank & Trust
Bank Grade
B+
APY
1.80%
Why we chose it?
What to watch for

 

 

Personal Checking Accounts

Managing your money is of the utmost importance to ensure that your day-to-day expenses and bills are paid. This is where having the right checking account comes into play. You want a checking account that is flexible, offers free checks and possibly even lets you earn some interest on your money. There are some banks that offer excellent checking accounts, with the best checking account yielding 6.05%. Here are some accounts to consider if you are looking to open an account:  

 

Cadence Bank
Performance Checking
Personal Checking Account by Cadence Bank
Bank Grade
B
APY
5.00%
Avg. user rating
2.00
Why we chose it?
What to watch for
Bank of Frankewing
Kasasa Cash Back
Personal Checking Account by Bank of Frankewing
Bank Grade
B+
APY
4.00%
Why we chose it?
What to watch for

 

 

Methodology

 

Our editorial staff continually updates the information contained on our website. Our editorial staff has analyzed virtually all of the banks and credit unions that it follows, and it does weekly rate analysis for more than 250 prominent banks and credit unions. These institutions were chosen because they provide competitive APYs, low fees, and other factors we find important. These banks and credit unions often provide accounts that are available nationally. All of these banks are FDIC-insured, and all of these credit unions are NCUA-insured. Choosing an FDIC-insured bank or an NCUA-backed credit union assures that your money is protected as long as it stays within insurance limits and requirements.

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