- Capital One offers two business checking accounts that may be good for small businesses who want unlimited free transactions.
- The Capital One Spark business checking accounts do include a monthly fee, but that can be waived by maintaining minimum balance requirements.
- While they do offer online banking and a mobile app, they are also a brick-and-mortar bank with locations in eight states and Washington, D.C.
- Capital One can offer a good small business checking option with minimal transaction fees.
As a small business owner, it’s a good idea to keep your personal finance banking separate from your business finance banking. A good place to start is by opening a business checking account.
Business checking accounts help you stay on top of your bookkeeping and accounting. They can also increase your chances of getting funding.
But which business checking option is right for your business? Read on to find out more about Capital One business checking and whether it’s right for you and your small business needs.
Capital One Business Checking Overview
Capital One is a FDIC-insured national bank with physical branches in eight states and the District of Columbia. They have two business checking account options, both with unlimited, fee-free transactions, which makes them a popular option for small businesses that do a large volume of business.
While they are known for their in-person banking services at physical branches, they also offer modern conveniences similar to other online-only or online-forward checking account options. They offer a free business debit card with their checking accounts so you can access their network of 70,000 ATMs for cash deposits and withdrawals without ATM fees. They also offer a strong mobile app that allows you to check balances, deposit checks, and pay bills from your phone.
They do charge a monthly fee for either of their business checking accounts. However, these can be waived by meeting account balance requirements. If you deal with large amounts of cash deposits, their Unlimited account may be a good option because you can get unlimited cash deposits.
Is Capital One Business Checking a Good Option for Small Businesses?
Capital One offers one of the best business checking accounts for small businesses that need basic cash flow management. They also offer a checking product with a number of advantages. They’re best for small business owners whose banking needs include a brick-and-mortar bank with a strong mobile app. It’s especially good for small businesses looking for unlimited transactions, because they don’t charge a monthly fee for those.
Capital One also provides other banking services that are great for small businesses, such as small business financing, merchant services, and business savings accounts. Wrapping all of your business banking into a single bank can make it easier to manage all your money in one place, including transferring money between accounts and gathering financial information at tax time.
Their business credit cards are particularly popular, and offer a number of rewards and perks for different business needs. Some of their most popular cards include rewards such as:
- No APR or low interest rate
- No annual fee
- Cash back
- Travel rewards
- Card options for those with fair credit who need to build their score
The Capital One merchant services can be particularly helpful to small businesses that want to give their customers secure payment methods, including fraud protection. These services also give you next-day access to your customer payments, so it’s in your account faster than other providers. They also provide mobile and digital options so you can collect payments easily from your in-person or online store, including popular payment options such as:
- Google Pay
- Major credit and debit cards
In terms of loans and lines of credit, Capital One offers a number of options to help you grow your small business or handle daily expenses, including:
- Real estate term loans
- SBA loans
- Lines of credit starting at $10,000
Nav helps small business owners determine which types of financing they’re most likely to qualify for based on business data including business credit scores, personal credit scores, and more. Sign up for a free account to compare your best loan options.
Is Capital One Business Checking Free?
Some aspects of Capital One business checking accounts are free, such as fee-free ATMs and free unlimited monthly transactions. But no, Capital One business checking accounts are technically not free. Depending on which of the accounts you opt for, you will pay a monthly maintenance fee of either $15 or $35. Also, there is a $250 minimum opening deposit, which may be steep for small business owners who are just starting out.
How Capital One Business Checking Works
There are two Capital One business checking accounts to choose from:
Capital One Spark Business Basic Checking Account
This basic checking account includes:
- Unlimited fee-free transactions
- A $15 monthly maintenance fee that can be waived with a $2,000 or more minimum balance over a 30- or 90-day period (whichever is greater)
- Up to $5,000 free cash deposits per month and $1 fee per $1,000 deposited after
- $15 charge for incoming wire transfers
- $25 for outgoing domestic wire transfers
- Free debit cards
- Thousands of fee-free ATMs
- Mobile banking app
- Online bill pay
- Mobile check deposit
- Unlimited digital transactions
- Overdraft coverage
- $15 for incoming international wire transfers
- $40 for outgoing international wire transfers (or $50 in U.S. dollars)
Capital One Spark Business Unlimited Checking Account
The higher tier Capital One Spark Business Unlimited checking account includes everything the Capital One Spark Business Basic Checking Account offers, with a few minor differences:
- No fee on cash deposits
- Free incoming domestic wires
- Five free outgoing wires per month
- $35 monthly service fee that can be waived with an average minimum balance of $25,000 or more over a 30- or 90-day period (whichever is greater)
- Capital One ProDeposit, a remote deposit service to save you a trip to the bank
The Pros and Cons of a Capital One Business Checking Account
- No fees or limits on transactions
- Over 70,000 fee-free ATMs
- Free mobile app, including mobile check deposit and bill pay
- Other business services like savings accounts, merchant accounts, business credit cards, and small business loans available
- $250 minimum deposit
- Monthly fee of $15 or $35
- Have to apply at a physical branch in one of eight states or Washington, D.C.
- No interest-earning APY options
What Does it Take to Qualify for a Capital One Business Bank Account?
In order to qualify for either of the Capital One business checking accounts, you’ll need to be over 18 and be a legal resident of the U.S. The bank may also verify your information through background checks and ensure you don’t have a record of bad standing with other banks.
You’ll also need the following documentation:
- Legal name of your business
- Type of business
- Name, date of birth, and social security number of all owners who will have access to the account
- Email address
- Phone number
- U.S. address (not a P.O. box) and date of ownership of address
- Business establishment date (including each owner’s full name)
- Tax ID number
- Ownership structure
- Number of employees
- Percent of ownership
- Annual gross revenue
Certain business structures may require other documentation like articles of incorporation or tax documents. For instance, an LLC will require Certified Articles of Incorporation or Certified Articles of Formation/Registration or Certificate of Good Standing or a Signed and Dated operating agreement as well as an IRS Form SS-4/CP575A or an IRS letter 147C. Make sure to check with the bank when you make your appointment or check at their website for more information.
How to Open a Capital One Business Checking Account
While Capital One does have free online and mobile banking, you unfortunately can’t apply online for one of their business checking accounts. You’ll need to set up an appointment at a physical branch in one of these locations:
- New Jersey
- New York
- Washington, D.C.
You can also look online and enter your zip code to find your local branch.
Bring the documentation outlined above to the appointment as well as the required $250 minimum opening deposit.
Once your application is filed and approved, they’ll give you your debit card(s). Within hours, you’ll have access to your account online. You can also order checks online.
Nav helps business owners like you find the right business checking account for your business needs. Compare your business checking options today and find the solution you need for your business finances.