A Discover business checking account doesn’t exist yet — but there are many fantastic business checking options out there. Opening a business checking account can help small businesses and entrepreneurs separate their personal finances from their business accounts. This separation may give business owners more protection and more credibility. Plus, many business checking accounts are fee-free, have online banking, and offer potential business perks.
Here we cover the top alternatives to a Discover account and what to look for in a business checking account.
Does Discover Offer Business Checking Accounts?
No. You can’t get a Discover business checking account currently. Discover Bank only offers personal checking accounts and savings accounts. Also, if you want a business savings account or money market account to connect with your business checking account, you’ll have to look at other banks.
Alternatives to Discover for Business Checking
Finding the right business banking account can be a challenge, especially if you hoped to go with a bank you already have an account with, like Discover. Discover is famous for having no fees on its financial products and offering enticing cash-back rewards. So we gathered several business checking accounts that have similar features for you to consider.
Chase Business Complete BankingSM
Chase Bank charges a monthly fee for its business checking account, but there are multiple ways you can qualify to waive it. You can accept customer payments through Chase QuickAccept without paying extra fees. Chase’s mobile app is also highly rated, like Discover’s. You can also get a business savings account to connect with your checking account through Chase.
Small Business Checking by Bank of America
The business checking account from Bank of America has a monthly fee, but there are several methods to waive it. Its basic account also offers a Cash Flow Monitor tool and a Zelle account for your business. The Bank of America mobile app is also rated well. You can also connect a Bank of America Business Advantage Savings account and receive an interest rate increase.
Bluevine Business Banking
There are unlimited transactions, monthly fees, or minimum balance requirements with Bluevine’s business banking account. Also, similar to Discover’s interest on its products, you can get high-yield interest on your business banking account with Bluevine. Discover is a bank while Bluevine is a financial technology company — but it’s still a Member FDIC company.
Axos Basic Business Checking
Like Discover, Axos doesn’t charge monthly fees. There’s also no minimum deposit requirement and an unlimited number of ATM reimbursements you can get. You’ll also have unlimited debit, credit, and deposit transactions. The mobile app from Axos Bank is also well rated by customers.
What to Look for in a Business Checking Account
It’s smart to compare several accounts when you’re searching for the right business checking account so you can get a full picture of what’s out there and what meets your banking needs. With each account, try to investigate the features below for each account.
Make sure you aren’t overpaying for things like:
- Minimum opening deposit: Some banks require you to deposit some money before you can open a business checking account. The amount is typically between $25 and $100.
- Monthly maintenance fee: The fee each month can vary depending on the bank and the specific account you open, from $0 to $50 and possibly more. Often, you can qualify to get the monthly fee waived.
- Minimum balance requirement: Typically, one of the ways to waive the monthly fee is to keep up with the minimum balance requirement set by your business checking account. If you can’t manage to keep the balance, you often have to pay the monthly maintenance fees.
Like personal checking accounts, a debit card is a universal feature of business checking accounts. It’s helpful to have a separate debit card to be able to use for business expenses in person or online. Some business checking accounts give cardholders a cashback debit card, which gives cash back for each debit card purchase or for spending in certain categories.
If your business has a lot of cash transactions or uses cash frequently, you’ll want to consider ATM access. If the bank has ATM fees, calculate how much it will cost you to use them each month. Many banks have free ATMS in their network. Even a small fee of a few dollars each time you use an ATM can add up over time.
Many banks limit the number of transactions you can make for free on your account each month. On average, you’ll be allowed to complete 100 to 200 free monthly transactions before you get charged an additional fee — which is often a fee per transaction, so it can cost you. There are online banks that allow for unlimited free transactions, however.
If your business has a lot of cash coming in and going out, like a restaurant, pay attention to the number of free cash deposits the account allows for. Many banks set a limit to the amount of cash you can deposit per month without charge, and often charge for every $100 over that amount you deposit.
Annual percentage yield (APY)
The annual percentage yield, often referred to as interest rate, is the percentage you earn back on your balance. This perk is typically linked with savings accounts, but some business checking accounts offer it as well. If you plan to keep a high monthly balance in your business checking account, look for an account that gives you interest back on it.
Access to mobile banking is practically a requirement for most bank customers these days. You’ll want to consider whether there is a mobile app for the bank you’re considering, as well as its ratings. That way, you’ll be able to easily and quickly check your account balance on the go or transfer funds.
The Federal Deposit Insurance Corporation is the U.S. government agency that insures your deposits, up to a certain amount. Make sure the bank declares on its website that it is a “Member FDIC” so you know your money is covered by the government if the bank files for bankruptcy.
Other account options
Another thing to consider is what other types of accounts the financial institution offers, like:
- Business credit cards
- Certificates of deposit
- Lines of credit
For example, if you were eyeing a Discover card to add to your wallet, you might consider opening a checking account with Discover. It may be a bit easier to qualify for a credit card if you already have a relationship with that bank. Additionally, look into whether the bank gives you easy access to your credit score or not.
The Bottom Line
While you can’t get a business checking account through Discover, there are many other fantastic choices. Having a business bank account may give you a leg up when you apply for lending and increase your personal protections. Often, you need to demonstrate multiple years of cash flow in a business checking account to get approved for funding like a small business loan.
Using Nav is the easiest way to find the right business checking account for you, and more. Sign up for a free account at Nav to get started on your business funding journey today.