Bank of America Business Checking Account Review

Bank of America Business Checking Account Review

Bank of America Business Checking Account Review

As a business owner, it’s considered best practice for you to keep your personal and professional finances separate—even if you are doing business as a sole proprietor or independent contractor. Opening a checking account just for your business expenses is an important first step in managing your company’s finances, and will save you time and stress at tax time. What’s more, if you anticipate borrowing in the future there are many lenders who will not approve a business loan application if you don’t have a business checking account.

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 account review, you’ll learn about the different options and how to choose the right account for you. 

Just keep in mind as you read this that some accounts, services, and fees vary from state to state. 

Features of Bank of America Business Checking Accounts

Bank of America offers two primary types of checking accounts available to small business owners, and you can switch between them as your needs change. Both of these are non-interest bearing accounts. 

1. Business Advantage Fundamentals Banking

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 Advantage Fundamentals Banking, you’ll get access to Bank of America’s Small Business Online Banking platform. Use it to send one-time or recurring electronic payments (bill pay), 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 Advantage Fundamentals Checking account, there is a $16 monthly fee. However, that fee will be waived in the following cases you meet of the following requirements each statement billing cycle:

  • You spend $250 in new net purchases on a linked Bank of America business debit card or  
  • You maintain an combined average monthly balance of $5,000 or more
  • Alternatively, you qualify for 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. There are no excess transaction fees for certain transactions including debit card transactions, Remote Deposit Online, Bank of America ATM, or checks deposited through Mobile Check Deposit. 

2. Business Advantage Relationship Banking

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. 

This business bank 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 a transaction fee, 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. 

What Do I Need to Open a Business Checking Account at Bank of America?

To apply for a Bank of America business checking account, you’ll need the following information: 

  • Business documentation such as filing documents, articles of organization, articles of incorporation and/or certificate of resolution
  • Business Tax ID (EIN)
  • Name and address of the business
  • State in which the business operates
  • State in which the business was formed
  • Date the business was established
  • SSN, address and DOB of the business owner

Once the bank has your application and all the appropriate documents, your account could be open and available for use within 24 hours. You will need to supply documentation within a certain number of days, so be prepared to provide it. 

Once your account is open, you should receive a debit card and checks (if you’ve ordered them) within 5-7 business days.

How Much Money Do You Need to Open a Business Account with Bank of America?

You can open either of the BofA business accounts with an initial $100 deposit. Many financial institutions require you to add a minimum deposit into your account when you open it, usually between $25 and $100 for a checking or savings account. 

To make this deposit, you can transfer money from an existing Bank of America account. If you’re not a customer, you can use a debit card, check, money order, or Zelle.

How a Bank of America Business Account Works

A Bank of America business account typically includes one of a couple of different types of checking accounts listed above. If you need a more full-service relationship, you can link a second Business Advantage Relationship Banking account, Business Economy Checking, Business Interest Checking, Business Advantage Savings, Business Investment Account and Business CDs. You may want both a business checking and business savings account, especially as your business grows.

You can open a Bank of America business account online but once your account is approved you’ll either need to mail a signature card or take it to a local financial center. You can then put funds into your account while applying by using a debit card, transferring money from another account or writing a check. You can open most banking accounts with an opening deposit of $100 or more. 

You’ll get a debit card giving you access to thousands of ATMs, mobile banking, bill pay, and access to Zelle for your business.

Pros and Cons of a Bank of America Checking Account

If you’re thinking about opening a Bank of America small business checking account, keep these benefits and drawbacks in mind. 

Benefits

  • 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. 
  • Bricks-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. 

Drawbacks

  • Fees: While it’s possible to get your monthly fees waived with a Bank of America checking account, not all businesses will qualify. And there are other fees that may impact your business.
  • High monthly balance requirements : To have your monthly fee waived, Bank of America requires you to have an average monthly account balance of $3,000 to $15,000. That’s higher than some other free business checking account offerings. 
  • Mobile app gets mixed reviews. The Bank of America mobile app (not specifically for business banking) gets mixed reviews and does not appear to be as robust as some designed specifically for small business owners. 

FAQs

Here are the answers to some common questions about Bank of America’s business checking accounts: 

1. What is the Bank of America Business Checking Bonus? 

Occasionally, Bank of America will offer a bonus to new business checking customers. For example, at the time of this writing, you can earn up to $200 when you open a new Bank of America business checking account over the phone and meet qualifying criteria

The bonuses are always for a limited time, and are subject to change. Currently, you can earn $100 to $500 to support your small business.

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.

FeeBusiness FundamentalsBusiness 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 FeesNo fee for first 200 transactions,
then $0.45 per item
No fees for first 500 transactions,
then $0.45 per item
Cash Deposit FeeNo fee for first $7,500,
then $0.30 per $100
No fees first the first $20,000,
then $0.30 per $100
This does not include all fees. Fees may change, and may be different in some states.

3. 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. 

4. 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. 

You can also set up your Bank of America business credit card as overdraft protection. 

Bank of America offers several excellent credit card options for business owners. For example, with the Bank of America® Business Advantage Travel Rewards World Mastercard® credit card, you can 1.5 rewards points for every $1 spent on all purchases and 3 points for every $1 spent for travel booked through the Bank of America® Travel Center. 

Or, you can opt for the Bank of America® Business Advantage Customized Cash Rewards Mastercard® credit card and 3% cash back in the category of your choice (for the first $50,000 in combined choice category/dining purchases each calendar year, 1% thereafter), 2% cash back on dining purchases (for the first $50,000 in combined choice category/dining purchases each calendar year, 1% thereafter), and 1% cash back on all other purchases.

The Bank of America® Platinum Plus® Mastercard® Business card carries $0.00 annual fee, and you can $300 statement credit online bonus after you make at least $3,000 in net purchases in the first 90 days of your account opening.

Who is Bank of America’s Business Checking Best For?

A BofA business account could work well for a business owner looking for both online and in-person banking services, like checking your daily balance or making deposits. For business services like withdrawals, you can go to a physical branch or ATM. If you can qualify for the requirements needed to waive the monthly fee, one of these accounts could work well for your business. All of its accounts are FDIC insured, so there’s no need to worry about your money, as well.

Furthermore, a BofA business account can help you qualify for other accounts down the line. If you’re interested in getting financing like a line of credit or a loan, you can qualify for a lower interest rate. It could also be easier for an already established account holder to get a credit card with Bank of America.

Opening a Business Checking Account

Ultimately, the best business checking account is the one you use. A business checking account can invaluable as you grow your business, and even when it comes to qualifying for small business loans.

Bank of America is just one of many banks that offer business checking accounts. If you’re thinking of opening a new business checking account for your company, choosing one of Bank of America’s checking accounts is an option to consider. With fees that may be waived and branches across the U.S., Bank of America can help you manage your business’ finances and streamline your bookkeeping.

This article was originally written on September 17, 2020 and updated on April 18, 2022.

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