For small business owners who are U.S. military service members looking to open a business bank account, the Navy Federal Credit Union (NFCU) may be a great place to handle your business finances. Find out why this financial institution may be a great place to open a business checking account or business savings account, and how you could qualify.
What Is the Navy Federal Credit Union?
Headquartered in Vienna, Virginia, the Navy Federal Credit Union (NFCU) is a global credit union started specifically for members of the U.S. armed forces. Like all credit unions, it’s regulated by the National Credit Union Administration (NCUA). It’s the largest consumer credit union in the U.S. due to both how many individuals are members and how many assets it manages.
In order to be a member of the NFCU, you have to satisfy one of the following eligibility requirements:
- Be an active duty member of the U.S. armed forces, including the Army, Marine Corps, Navy, Air Force, Coast Guard, National Guard, or Space Force. You may also be a member of the Delayed Entry Program (DEP), Department of Defense (DoD) Candidate/ROTC, or a DoD Reservist.
- Be a veteran or retired from the military, including annuitants.
- Be a family member of a military member, retiree, or veteran, including parents, grandparents, spouses, siblings, children (adopted or step-children, too), grandchildren, or even a household member.
- Be a Department of Defense Civilian, including civilian employees, U.S. government employees assigned to DoD installations, DoD contractors assigned to U.S. government installations, and DoD civilian retirees and annuitants.
- Be a minor whose parents, guardians, or grandparents sign you up.
If you’re looking to buy a car or purchase real estate, Navy Federal offers a host of benefits, such as loan discounts, Veteran Administration mortgages, and low auto rates. The institution’s size also means they have a lot of resources that you can tap into, like a worldwide network of ATMs, convenient physical locations and branches, and a mobile banking app with round-the-clock support.
Is Navy Federal a Good Place to Open a Business Account?
Navy Federal business solutions include a variety of business checking accounts, business savings accounts, and their GO BIZ debit card or GO BIZ Rewards credit card. If you’re already a member of the credit union with a personal account, opening a business account is also very convenient.
Unlike some other business checking accounts, Navy Federal’s business checking account offers interest you can earn, starting at 0.1% annual percentage yield (APY) and going as high as 0.45% APY for Business Premium Checking accounts of $25,000 and over. (These are the rates at the time of writing). It offers several checking and savings account options that can be good for everyone from sole proprietors to corporations with multiple owners.
Navy Federal Business Checking Accounts
NFCU offers three levels of business checking accounts:
|Account Type||Non-Electronic Transactions||Monthly Service Fee||Signers||Best for|
|Business Checking||First 30 included; 25 cents each after||None||Up to 2||Small, new businesses with limited cash flow|
|Business Plus Checking||First 50 included; 25 cents each after||$8||Unlimited||Growing businesses with multiple owners and steady banking activity|
|Business Premium Checking||First 100 included; 25 cents each after||$20 (waived for average daily balance of $5,000+)||Unlimited||Mature, multi-owner businesses with lots of transactions and higher deposit balances.|
Navy Federal Business Savings Accounts
Opening a business savings account is an excellent way to set money aside for times when your business isn’t doing as well, or just to plan for the future in general. NFCU provides competitive interest rates and, as with all their other accounts, accessible online banking options so you can transfer between your business savings and checking accounts when you need to. The credit union offers three types of business savings accounts:
|Account Type||Dividends Earned||Features||Minimum Balance to Earn Dividends||Best For|
|Money Market Savings Account||Daily||No term restrictions; competitive rates||$2,500||Businesses looking for higher earnings than a standard savings account|
|Jumbo||On $100,000 or more||No term restrictions; competitive rates||$100,000 +||Businesses with the ability to maintain higher balances on deposit or interested in earning a jumbo dividend rate|
|Certificates||Higher earned through longer maturities||No maximum purchase (excluding special promotions and offers); three- to seven-month terms available||Minimum purchases as low as $100||Businesses prioritizing earning the highest dividend rate without needing flexible access to savings|
Pros and Cons of Navy Federal Business Checking Account
- No monthly service fee
- Multiple account types
- Digital banking
- Well-rated mobile app
- Must have ties to the military to get membership
- Limited branch access
- May have transaction limits
Navy Federal Business Debit and Business Credit Cards
When you open a business checking account with NFCU, you can easily sign up for the GO BIZ debit card to easily pay for your business’s needs from your business checking account. The debit card gives Navy Federal business members a zero-liability policy for unauthorized transactions, Visa travel accident insurance, and contactless, tap-to-pay technology — all great if you travel, and even if you stay in the U.S.
The GO BIZ Rewards business credit card is a good idea to help your company build credit and open a larger line of credit for your small business. It boasts no annual fee and a points system, plus an annual percentage rate (APR) as low as Prime+ 5.90%. You can choose between a Visa or Mastercard and add multiple cardholders, which is great for a corporation. They also offer no earnings cap for points, no foreign transaction fees, and zero liability for unauthorized transactions.
The GO BIZ Rewards Visa offers Visa SavingsEdge, which can save you up to 15% on business purchases from participating merchants in travel services, IT solutions, shipping, and evening dining out. The GO BIZ Rewards Mastercard offers additional services like business advantages, cell phone protection, ID theft protection, and automobile collision damage waivers.
What Is Needed to Open a Business Bank Account with Navy Federal?
There are a number of documents you need to apply for a business bank account with Navy Federal, as well as a minimum deposit of $250 for sole proprietorships and $255 for other business types. Take a look at this list to see which documents you need for your specific business structure.
In order to open a business banking account with Navy Federal, you simply follow three easy steps:
- Make sure you and any other owners of your small business are all individual members with accounts in good standing.
- Sign into your personal NFCU account and complete the Business Membership Pre-Application Form, including all documentation for your business type.
- Call NFCU within two business days of completing step two and submit all required documentation.
As with all credit unions, Navy Federal is known for its customer service, and if you and your other business owners are already personal members of NFCU, opening a Navy Federal business account can be an excellent idea.
Alternative Business Checking and Savings Accounts
Finding the right business checking account can take time. Here are some of the top options on the market today.