As a business owner, it’s essential that you keep your personal and professional finances separate. Opening a checking account just for your business expenses is an important first step in managing your company, and will save you time and stress at tax time.
If you’re not sure where to start, consider Bank of America business checking accounts. The company offers two robust options that can work for small business owners, offering low fees and useful perks to streamline your business operations. In this Bank of America business checking review, learn about the different options and how to choose the right account for you.
Bank of America checking accounts
Bank of America offers two of the best checking accounts available for small business owners.
1. Business Fundamentals Checking
If you have a new business or if your average monthly balance tends to be relatively low, a Bank of America Fundamentals account may be for you. When you open a Business Fundamentals Checking account, you’ll get access to Bank of America’s Small Business Online Banking platform. Use it to send one-time or recurring electronic payments, receive bills from companies online, and download transactions to QuickBooks for easy accounting.
You’ll also get business and employee debit cards so you can track your business spending more easily.
With a Business Fundamentals Checking account, there is a $17 monthly fee. However, that fee will be waived in the following cases:
- You spend $250 in net purchases on a business debit or credit card
- You maintain an average monthly balance of $5,000 or more
- You maintain a minimum daily balance of $3,000
- You Maintain a combined average monthly balance of $15,000 or more in your linked Bank of America accounts
- You qualify and enroll in the Preferred Rewards for Business program
There is a monthly account management fee of $15. Incoming wire transfers will cost you $15 per domestic transfer, and $16 per international transfer.
There are no fees for your first 200 transactions, including checks paid or deposited. After that, Bank of America will charge you $0.45 per item. For cash deposits, there’s no charge for the first $7,500. After that, there’s a $0.30 fee per $100 deposited.
2. Business Advantage Checking
If your business is more established, you spend at least $2,500 per month on your business card, or maintain an average monthly balance of $15,000 or more, consider signing up for a Business Advantage Checking account.
As an account member, you’ll get access to a Business Advantage Savings Account with no additional monthly fee. And, you can open a second Business Advantage Checking account without having to pay another monthly fee.
You’ll get access to the Small Business Online Banking platform, and get business and employee debit cards to manage your spending.
As an added perk, there is a special $300 credit card offer for Business Advantage Checking account members. Spend at least $3,000 in new purchases within the first 90 days of opening an eligible business Bank of America credit card account, and you’ll get a $300 statement credit.
The account has a simple fee structure: $29.95 per month. However, that fee will be waived if you meet one of the following requirements:
- You spend $2,500 in net new purchases on a business credit card
- You maintain an average monthly balance of $15,000 or more
- You maintain a combined average monthly balance in your linked Bank of America accounts of at least $35,000
- You actively use Bank of America Merchant Services or Payroll Services
- You qualify for and enroll in the Preferred Rewards for Business program
There are no additional account management fees, and there is no fee for wire transfers.
In terms of transaction fees, there are no fees for your first 500 transactions. After that, you’ll be charged $0.45 per item. There is no cash deposit fee for the first $20,000, then you’re charged $0.30 per $100.
Pros and cons of a Bank of America checking account
If you’re thinking about opening a Bank of America business checking account, keep these benefits and drawbacks in mind.
- Monthly fees can be waived: While there is a monthly fee, you can have that fee waived if you meet certain criteria.
- Robust banking platform: You’ll have access to the Small Business Online Banking platform, a program you can use to manage your finances, accept and send payments, and sync with QuickBooks.
- Brick-and-mortar locations: Bank of America has thousands of branches nationwide. If you need in-person customer support, you can visit a branch and speak to a live representative for help.
- Fees: While it’s possible to get your monthly fees waived with a Bank of America checking account, there are other fees to be aware of. You’ll pay transaction fees after your first 200 or 500 transactions, depending on the account you have. And, you should keep in mind that there are often cash deposit fees and wire transfer fees.
- High monthly balance minimums: To have your monthly fee waived, Bank of America requires you to have an average balance of $3,000 to $15,000. That’s higher than some other business checking account offerings. For example, Bank OZK — formerly Bank of the Ozarks — offers small business checking options with no minimum balance and no monthly service fees.
Here are the answers to some common questions about Bank of America’s checking accounts:
1. Should I get a Bank of America business credit card?
If you’re a small business owner and are signing up for a business checking account, it’s a good idea to sign up for a business credit card, as well. Having a separate credit card will help you track your spending, allowing you to maximize your deductions. And, a good credit card can help you earn valuable rewards.
Bank of America offers several excellent credit card options for business owners. For example, you’ll earn 3X points per $1 spent on travel purchases and 1.5X points per $1 spent on all other purchases with the Business Advantage Travel Rewards card.
Or, you can opt for the Business Advantage Cash Rewards Mastercard and earn 3% cash back on your choice of one of the following six categories: gas stations, office supply stores, travel, television and wireless services, and computer services or business consulting services.
The Platinum Visa is another great option. It has no annual fee, and you can earn a $300 statement credit if you spend $3,000 on net purchases within the first 90 days of opening an account.
2. What are the Bank of America business checking account fees?
The fees for your checking account depend on what kind of account you have.
|Business Fundamentals||Business Advantage|
|Monthly Maintenance Fee||$17||$29.95|
|Account Management Fee||$15||$0|
|Wire Transfer Fees||$15 per domestic transfer, $16 per international transfer||$0|
|Excess Transaction Fees||No fee for first 200 transactions, then $0.45 per item||No fees for first 500 transactions, then $0.45 per item|
|Cash Deposit Fee||No fee for first $7,500, then $0.30 per $100||No fees first the first $20,000, then $0.30 per $100|
3. What is the Bank of America business checking bonus?
Occasionally, Bank of America will offer a bonus to new business checking customers. For example, the company previously offered a $500 bonus to customers who made $20,000 in qualifying deposits and at least 10 electronic payments within 60 days of opening an account.
The bonuses are always for a limited time, and are subject to change.
4. Can I open a Bank of America business checking account online?
Yes, you can open a Bank of America business checking account online. You can also open an account by visiting a financial center in-person or by calling 866-543-2808.
Opening a business checking account
If you’re thinking of opening a new business checking account for your company, choosing one of Bank of America’s checking accounts is a smart option. With fees that can be waived, a solid reputation, and an easy-to-use online banking platform, Bank of America can help you manage your business’ finances and streamline your bookkeeping.