Having a business checking account seems like a given for any small business owner. Part of separating your personal and business finances simply has to involve a business checking account, along with applying for and using new sources of credit. Unfortunately, not having a business checking account isn’t just inconvenient, it could also spell bad news for your business.
In a survey done by Nav, 50% of business owners without a business bank account want to open one, but haven’t had the time to set one up. Those who didn’t have a business bank account considered closing their business at twice the rate of those with a separate business bank account. To make things smoother for yourself as you run a business, it’s good practice to open that separate account sooner rather than later (read more about the importance of separating your business finances here).
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The majority (57%) of business owners surveyed bank with a larger bank, and there are certainly worthy options among the larger institutions. Both Chase and Bank of America are common choices for business owners, but which business checking account is better?
Chase Business Checking Accounts
Chase offers three different business checking accounts: Chase Total, Chase Performance, and Chase Platinum. Here’s a quick breakdown of each.
|Account Type||Chase Total||Chase Performance||Chase Platinum|
|Monthly Fee ($0 with minimum daily balance)||$15||$30||$95|
Bank of America Business Checking Accounts
By contrast, Bank of America only offers two different business checking accounts: the Business Fundamentals Checking account and Business Advantage Checking.
|Account Type||Business Fundamentals||Business Advantage|
|Business Size||Small (avg. monthly balance < $5,000)||Mid-size to Large (avg. monthly balance > $15,000|
|Monthly Fee ($0 with minimum balance)||$17||$29.95|
|Minimum Balance||$3,000 daily, $5,000 or higher average monthly balance||$15,000 or higher average monthly balance|
Additionally, both Chase and Bank of America offer free additional debit cards for employees, and the ability to avoid the monthly service fee is a win.
Overall, it appears the basic Chase Total account offers more for less than the Bank of America Fundamentals Checking account, but both institutions offer competitive products in the higher-tier accounts.
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