If you own a small business, you need an easily accessible checking account to handle your day-to-day operations. That’s obvious. The good news is it’s fast and simple to set one up if you have the right registrations and paperwork ready. The complicated part? There are a lot of banks and offers from which to choose. Here are several things to look for, whether you’re just starting your banking journey, or are considering moving on from your current bank; they can help make the selection process a little easier:
Interest rates
Interest-generating business checking accounts are very common. They’re popular because they allow business owners to rack up added income through interest accruing on their deposits…and it doesn’t hurt to earn more interest wherever you can.
This is one place where your research can literally pay off. At the present time, online banks have a clear edge, taking advantage of their digital (rather than physical) presence to offer higher interest rates due to lower overhead.
Service fees
Typically, business checking accounts will come with some kind of monthly charge that the bank refers to as a “service fee.”
These fees may range from $10-$30 per month. In many cases, though, banks that tout more attractive features often charge an even higher service fee. While you might decide that fees will not make a significant difference to you, free or low-cost alternatives can be found.
They may also waive service fees if you meet other criteria, like maintaining a minimum daily balance or signing up for another banking product. Regardless, not doing your research could result in some unexpected cost that you might otherwise have avoided.
Minimum account balance fees
If your business has – or will have – an account balance that fluctuates significantly on a regular basis, this is one fee to keep in mind. Check to see whether a prospective banking partner requires a firm minimum daily balance. In some cases, too, a minimum first deposit (that could total $500 or more) might be needed in order to open an account or to take advantage of selected services. This is where a careful read of the bank’s business checking terms and conditions is vital.
Transaction allowances
Transaction allowances (and their associated fees) might either be a non-factor for you or, worst case, a recurring source of financial headaches. In this definition, “transaction” can be anything from cash or check deposits, to withdrawals, transfers and electronic payments.
Thankfully, you can find banks offering unlimited free transactions. If not, be sure you know how many no-charge transactions you would have before the fees kick in. If the number is, say, 300 per month and that number is well beyond your expectations, it’s not anything that should concern you. On the other hand, if you would surpass that number by the 10th of the month, finding a more accommodating bank would definitely be a priority.
Deposit allowances
Some banks track the number of cash deposits made each month into business checking accounts, charging a fee when a set number of transactions is exceeded. If your business is highly cash-oriented or you make daily deposits, this is one fee you can easily avoid with a little bank shopping.
Application versatility
Spurred by the rapid growth of fully-online banking, the prevalence of online applications for all banking has grown rapidly. These days, to be
competitive, business checking account apps must be totally mobile, perform all common transactions, offer integration with financial software, have useful built-in tools and be available 24/7. If you’re considering a traditional bank, make sure their apps are comparable to options from digital-only institutions.
In-person vs. online services
Small business owners have more banking options than ever today. Do you want a bank that has physical branches you can visit, or do you conduct the majority of your transactions online? A business that deals constantly with cash deposits may prefer a traditional bank with nearby locations. Those who are comfortable conducting their day-to-day business online may choose to forego the physical bank approach and enjoy the freedom of choosing an institution based on factors other than proximity.
Both online and traditional banks now offer applications that provide 24/7 access to accounts and the ability to perform most, if not all of the typical functions customers would expect (as you might imagine, the most robust of these apps live in the online realm). Regardless of the type of bank you select, this is increasingly important.
Finally, as previously mentioned, keep in mind that fully-online financial institutions usually offer higher interest rates than brick-and-mortar banks, due to the fact that they don’t have to support physical branch locations. This difference can, in fact, be pretty significant.
Now that we’ve established some parameters, here’s how Do More BusinessTM Checking from First Internet Bank stacks up to the competition in the areas we’ve covered:
- Interest rates: Our checking account earns a competitive Annual Percentage Yield (APY) of 0.50%* But that’s not all! When you open a First Internet Bank Business Money Market or Regular Savings
account and use your Do More Business Checking account’s free Balance Optimizer, your surplus cash on hand (a total that you’ve predetermined) moves seamlessly into your savings, earning higher interest. It’s a great way to build a rainy day fund or plan for growth.
- No Minimum account balance fees, Service fees or Overdraft fees: None of those here!
- Unlimited Transactions: Make as many as you need – no charge
- Deposit allowances: Unlimited – because you shouldn’t have to pay to run your business
- App versatility: Secure 24/7 online and mobile apps; make ACH payments, wire transfers and more
- In-person vs. online services: We’re not just “another internet bank” – in 1999, we became the first FDIC-insured institution to operate entirely online, and we have been a leader in digital banking ever since. If you’re not totally attached to spending time driving and standing in line, we’re worth a look. We think you’ll like what you see.
- …and even more: With Do More Business Checking, you can see both your business and personal accounts – even those with other banks. Cash Flow Analysis provides forecasting, insights and spots potential issues before they impact your firm. Plus, you can benchmark your performance against the competition. That’s why we call it “Do More”.
The right business checking account can prepare your organization for growth and provide a healthy buffer when the unexpected occurs. Why not start with the best? To learn more, check us out here.
*Earn interest with an average daily balance of $10,000. Rate is variable and may change after the account is opened. Rate is current as of 7.1.2025
