One post tagged with "banking tips"

Choosing a business bank account shouldn’t feel like a part‑time job. Below is a practical, up‑to‑date guide that cuts through marketing fluff and shows you what to look for—then matches common business needs to solid options. I’ll also flag a few rules and gotchas so you can open your account with confidence.

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TL;DR​

• Match the account to your workflow. Heavily digital? Prioritize real‑time transfers, sub‑accounts, and software integrations. Handle cash often? Favor branch access or large cash‑deposit networks.
• Mind the fees and limits. Look closely at monthly fees (and waiver rules), transaction caps, cash‑deposit fees, and wire/ACH costs.
• Protect your balance. Standard FDIC insurance is $250,000 per depositor, per insured bank, per ownership category—use sweep programs or multiple institutions if you regularly hold more.

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Step 1: Make a 2‑minute “needs list”​

Ask yourself:

1. Cash handling: Do you deposit on a weekly basis? You’ll want branch coverage or a wide cash‑deposit network (e.g., Allpoint+ or Green Dot).
2. Payments: How often do you send ACH, wires, or international payments? Do you need same‑day ACH or support for instant payment rails (RTP® or FedNow®)?
3. Team and controls: Will you issue multiple cards, set spending limits, or create sub‑accounts/envelopes to run “Profit First” style budgeting?
4. Tools: Which platforms must connect (QuickBooks, Xero, Stripe, Shopify, payroll)?
5. Balance safety: If you keep >$250k on deposit, consider accounts that use sweep networks or ICS® to expand FDIC coverage.

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Step 2: Shortlist by use‑case (top options that actually fit)​

Note: Features and APYs can change—always confirm details on the provider’s site when you apply.

If you want high‑yield checking with easy ACH​

• Bluevine — No monthly fee on Standard; 1.3% APY on qualifying balances (higher APYs on Plus/Premier), free standard ACH, and large cash‑deposit access via Allpoint+ ATMs and Green Dot. FDIC insurance can reach **up to $3M** via program banks. (Outgoing domestic wires ~$15; no international wires.)

If you need lots of sub‑accounts, roles, and spend controls​

• Relay — Create up to 20 checking accounts and issue up to 50 debit cards with spend limits; deposit cash at Allpoint+ (often free) or 90k+ Green Dot locations (retailer fee up to $4.95). Paid tiers add same‑day ACH and free outgoing wires; savings APY varies by plan.

If you’re a startup or send global payments​

• Mercury — $0 monthly fee; **free ACH**, **free domestic and USD international wires**; **1$5M** via partner banks. Robust user roles, virtual cards, and accounting integrations.

If you handle some cash but want a modern, low‑maintenance account​

• U.S. Bank Business Essentials® — $0 monthly maintenance fee, unlimited digital transactions, and 25 free teller/paper transactions per statement cycle. Handy if you occasionally need a branch.

If you want big‑bank branch access and built‑in card acceptance​

• Chase Business Complete Banking® — $15 monthly fee with multiple ways to waive; Chase QuickAccept lets you take cards in the app and get same‑day funding. Check the transaction allowances and non‑Chase ATM fees if you’re high‑volume.

If you prefer an online bank with wire perks​

• Axos Basic Business Checking — No monthly fees, free domestic & international incoming wires, two domestic outgoing wire reimbursements monthly, and unlimited domestic ATM fee reimbursements. No minimum opening deposit.

If you’re mostly online and don’t handle cash​

• Novo — Clean integrations (Stripe, Square, etc.), budgeting “Reserves,” and ATM fee refunds—but no direct cash deposits (you’ll use money orders if you must deposit cash).

If you’re a solo operator/freelancer who wants built‑in bookkeeping & tax tools​

• Found — $0 monthly fee; banking bundled with invoicing, expense tracking, and real‑time tax estimates—great for sole props. Check transfer/cash limits if you scale.
• Lili — Freelancer‑friendly features (expense categories, tax tools) with tiered plans; consider paid tiers for advanced features.

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Step 3: Run this 10‑minute selection checklist​

1. Map fees to your usage. Add up: monthly fee (and realistic waiver), wire costs, same‑day ACH fees, and cash‑deposit charges. For example, some networks cap retailer cash‑deposit fees up to $4.95; certain ATMs may be free.
2. Check transaction caps. Many “free” accounts cap in‑branch or paper transactions and charge per item afterward; digital transactions are often unlimited.
3. Look for instant payment rails. If you need immediate settlement, ask whether the provider supports RTP® or FedNow® (availability varies by bank).
4. Confirm integrations. Ensure your account syncs with your accounting stack and payment processors (QuickBooks, Xero, Stripe, Shopify, payroll).
5. Plan for balances >$250k. Either spread funds across banks or use sweep/ICS programs for expanded FDIC coverage.

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What matters most (and how to evaluate it)​

• Fees & waivers: Monthly fees and waiver rules (e.g., balance minimums, debit spend) differ widely—for instance, some big‑bank small‑business accounts waive fees with specific balances or card spend each cycle.
• Payments: Compare standard ACH (often free) vs same‑day ACH (typically a flat fee), domestic/intl wire pricing, and FX margins.
• Cash: If you’re cash‑heavy, check branch coverage and ATM/retail cash‑deposit networks (Allpoint+ and Green Dot are common) and their fees/limits.
• User roles & controls: Multi‑user permissioning, virtual/physical cards, spend limits, and sub‑accounts reduce reconciliation headaches.
• FDIC coverage: Standard coverage is $250k per depositor, per insured bank, per ownership category; sweep/ICS programs help extend coverage across multiple banks.

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Document checklist for opening your account​

Banks need to verify you and your business. Expect to bring:

• Personal ID (government‑issued).
• Business formation documents (Articles of Organization/Incorporation, etc.).
• EIN (or SSN for certain sole proprietors); many LLCs will be asked for an EIN.
• Operating agreement (LLCs) or bylaws (corporations).

Heads‑up on beneficial ownership: Regardless of separate federal reporting rules, banks still must collect beneficial owner information (generally any 25% owners and one control person) under the FinCEN Customer Due Diligence (CDD) Rule when you open an account. Be prepared to provide names, DOBs, addresses, and IDs for those individuals.

About BOI reporting to FinCEN: The separate federal beneficial ownership reporting requirement has been in flux in 2025; an interim final rule issued March 26, 2025, exempted most domestic companies while rulemaking proceeds (foreign reporting companies remained in scope). Check FinCEN’s site for the latest before you file.

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Quick “good‑fit” matches (by scenario)​

• Profit First budgeting or multi‑brand ops: Relay (20 accounts, role‑based controls, same‑day ACH on paid tiers).
• High‑APY checking & simple domestic payments: Bluevine (1.3%–3.5% APY plans; free standard ACH; cash deposits via Allpoint+/Green Dot).
• Global transfers & large balances: Mercury (free USD wires, 1% FX on non‑USD, sweep up to $5M).
• Occasional cash deposits + zero monthly fee: U.S. Bank Business Essentials (unlimited digital, 25 free in‑branch/paper per cycle).
• Branch network + in‑app card acceptance: Chase Business Complete (QuickAccept, multiple fee‑waiver paths).
• Wire‑friendly online bank: Axos Basic Business Checking (free incoming wires, ATM fee reimbursements).
• Freelancers/sole props wanting built‑in tax: Found or Lili.
• Online‑only, no cash: Novo (great integrations; no direct cash deposits).

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Pro tips before you click “Apply”​

1. Simulate your monthly activity. Price out your typical month—ACH volume, wires, card spend, cash deposits—to see which account is truly cheapest. (Fee pages and “clarity statements” matter.)
2. Ask about instant rails. If your payables/receivables need speed, confirm RTP®/FedNow® support with the bank (and whether it’s for receive, send, or both).
3. Verify FDIC details. If a fintech is “not a bank,” look for the member banks behind it and how sweep coverage works.
4. Keep cash options handy. Even digital businesses need occasional cash deposits—know your nearest Allpoint+ or Green Dot locations and the fee/limits.

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FAQ​

Do I need an EIN to open a business bank account? Sole proprietors sometimes open with an SSN, but LLCs are often asked for an EIN, and having one broadens your account choices. It’s free and fast to apply with the IRS.

Are online platforms safe? Look for accounts where deposits sit at FDIC‑insured partner banks and, when needed, are spread via sweep networks (or ICS) to increase insured coverage.

Which accounts are “free”? “Free” usually refers to monthly maintenance; you may still pay for wires, same‑day ACH, or cash deposits. Compare the schedule of fees and your actual usage.

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Final word​

There’s no one “best” business bank account—just the best fit for your mix of cash handling, transfers, team needs, and balances. Use the shortlist above as a starting point, and always verify current APYs, fees, and limits on the provider’s site when you apply. If you want, tell me your transaction mix, average balances, and must‑have integrations—I’ll recommend a tight top‑three tailored to you.