By revenued
There are several different lists that proclaim which banks are best for small business banking, and as one might imagine, they are not identical. Because there are many factors to consider when selecting a bank for your business, there’s not a one size fits all solution. There is one commonality between almost of all the lists, though, and that is Bank of America is almost always listed in the top five.
Bank of America is an award-winning financial institution. There are 3 million small businesses that use it. People say it’s one of the easiest banks to use, and there are several benefits to banking with them.
There are two business checking accounts to choose from at Bank of America: Business Fundamentals Checking and Business Advantage Checking. Both accounts include online banking ability, business debit cards and mobile banking. Both options also include comprehensive account management tools like the ability to set spending limits on specific debit cards and being able to pay bills with just a couple of clicks. The primary differences in the accounts revolve around monthly purchase amounts and average monthly account balances.
| Account Type | Business Fundamentals Checking | Business Advantage Checking |
|---|---|---|
| Monthly Fee | $13.00 | $29.95 |
| Ways to avoid paying the monthly fee | • Spend $250 in debit or credit card purchases; or • Keep a minimum average monthly balance of $5,000; or • Keep a minimum daily balance of $3,000; or • Keep a combined average of $15,000 for linked accounts. | • Spend $2,500 in debit or credit card purchases; or • Keep a minimum average monthly balance of $15,000; or • Keep a combined monthly average balance of $35,000 in liked accounts; or • Use Merchant Services or Payroll Services on a regular basis. |
In general, smaller businesses may prefer a Business Fundamentals Checking Account because the fee waiver requirements are easier to meet.
There are also two business savings accounts from which to choose. Both options come with mobile banking, automatic transfers and overdraft protection.
| Account Type | Business Investment Account | Business Advantage Savings Checking |
|---|---|---|
| Monthly Fee | $5.00 | $15.00 |
| Annual Percentage Yield (APY) | 0.02% | 0.02 - 0.04% |
| Minimum opening deposit | $100.00 | $100.00 |
| Ways to avoid paying the monthly fee. | • Keep a minimum daily balance of $2,500; or • Utilize at least one Business Investment Account; or • Enroll in the Business Advantage Relationship Rewards program. | • Keep a minimum daily balance of $5,000; or • Use at least one Business Advantage Savings Account Account; or • Enroll in the Business Advantage Relationship Rewards program. |
Having a good mobile banking app these days isn’t just a nice feature to have, it’s an absolute necessity. Bank of America doesn’t just have a good mobile banking app, they have a great, award-winning one. It’s said to be one of the highest functioning banking apps. It has a 4.8 star rating on iTunes with over 1.1 million reviews for Apple iOS, and 4.5 stars on Google Play with nearly 470,000 reviews for Android.
Part of those high reviews might be because of Erica. Erica is Bank of America’s virtual financial assistant and once you get used to having her around, you’ll have a hard time letting her go. You can ask Erica to pay your bills, research specific financial transactions and ask general questions. Erica can also send you reminders and notifications. After getting hit with a late fee for my electric bill two months ago, I asked Erica to remind me to pay it on the 28th of the month. Sure enough, Erica reminded me the other day and there will be no more late fees thanks to her.
There are two features, in particular, that might make Bank of America a superior choice for managing your small business finances: business credit cards and small business lending.
Business Credit Cards
Everyone wants cash back benefits from their credit cards, but it’s not as easy to find those offers for business credit cards. Bank of America, however, offers up to 3 percent cash back on some purchases. Plus, there’s no annual fee, which is another business credit card rarity.
Small Business Lending
The other reason Bank of America might be the best bank for your business is because they have an incredible reputation for lending money to small businesses. They’ve been known to loan over ten billion annually to small businesses. Bank of America offers several different types of lending, from business loans to vehicle financing, so chances are they’ll have an option that will work for you.
Choosing the right bank to manage your small business finances is an important decision, one that can have a huge impact on the success of your business. You’ll want to make sure to do your own research and read articles from trusted financial service agencies before settling on the right bank for you.
Sources:
Want to be the first to know when they launch?
The PayPal Business Debit MasterCard can be a convenient way for businesses that use PayPal to access the funds in their PayPal account. It’s important to know exactly how this card works — including overdraft features — to determine if it’s a good choice for your business and to use it correctly.
By revenued
Most of us are familiar with the term “cash flow” — it is the total monetary amount flowing in and out of a company. Knowing what it is and how to analyze it is paramount for small businesses that lack substantial cash reserves. Without cash flow monitoring and course correction, your business could quickly veer […]
By grant
Note: Due to funding no longer being available through the US Small Business Administration (SBA) for the Paycheck Protection Program (PPP), Revenued is no longer accepting applications. Revenued is currently accepting applications for the US Small Business Administration (SBA) Paycheck Protection Program (PPP). Whether you are a first-time applicant or a borrower seeking a second draw […]
By grant
Given its importance, identifying and preserving a steady cash flow should already be a priority. If it’s not, there’s no better time to start tracking it as one of your most significant metrics — and the best way to do that is to start with a cash flow statement. Here is a complete breakdown.
By revenued