What is Overdraft Protection? Understand Why Your Business Needs it
By revenued
Business Bank Reviews 13 Results
Azlo
Azlo says they are building a new banking experience where customers won’t get hit with minimum balance charges or hidden fees.
Account Details
- We scored Azlo at four stars for several reasons: a lack of fees, excellent mobile app, no overdraft fees and a focus on entrepreneurs. The only things that kept it from getting five stars were the lack of a savings account and the fact they don’t pay interest.
- Azlo is a specialized online bank that only provides accounts to businesses and entrepreneurs.
- Azlo services include a complete invoicing process that’s integrated with Stripe, an integrated debit card, all standard banking services and real-time notifications.
- Azlo does not charge fees — there are no transaction, ATM or monthly account fees; there are also no overdraft fees.
- They provide services to permanent and temporary U.S. residents.
- They do not pay any interest, so are a 0% APY account.
Common Fees
None
Bank of America
Band of America checking accounts get separate debit, deposit and employee cards with detailed record keeping and expense tracking.
Account Details
- As is typical of the larger banks, Bank of America has a number of inflexible fees and does not pay a very high interest rate, which resulted in a score of two stars.
- Bank of America provides several different accounts for businesses including Business Fundamentals Checking, Business Advantage Checking, Business Investment Account and Business Advantage Savings Account.
- The APY on the savings accounts runs from 0.02% to 0.04%.
- Features of the Fundamentals checking account include online banking, account alerts, bill pay, mobile banking, remote deposit, debit cards and a linked savings account.
- There is a monthly fee of $18 for the Fundamentals account, although this fee can be avoided by maintaining minimum daily or monthly balances.
- There is a transaction fee of $0.45 per item after you complete 200 transactions in a month. Other fees include a replacement card fee of $5, a 3% foreign transaction fee, a $12 overdraft protection transfer fee and several others.
Common Fees
Replacement card fee $5, 3% foreign transaction fee, $12 overdraft protection transfer fee. Fees vary by account type.
BBVA Compass
BBVA Compass provides flexible business checking and savings accounts with the option to upgrade an account to avoid certain common fees. They have no monthly fees or minimum balance requirements.
Account Details
- We thought the range of servcies, low fees, cash deposit, overdraft protection and flexibility made BBVA Compass an excellent choice, so we awarded it five stars.
- BBVA Compass provides both checking and savings accounts for businesses.
- Key services include mobile deposit, free mobile banking, online banking, bill pay, account alerts and online statements.
- There is no interest paid on the checking account.
- The overdraft fee is $25 if an account is overdrawn by more than $1 for 10 consecutive days. There is a $32 fee for each item paid by a bank that would make an account overdrawn.
- BBVA Compass does levy fees on inter-account transfers, wire transfers, deposits over certain limits and some in-branch services.
Common Fees
No ATM fees, $1 fee for each check after five a month, $4 for each in-branch deposit over the monthly limit of two, wire fees of $15-$50, inter-account transfer fee of $12 a day. Fees vary by account type.
BofI Federal Bank / AXOS Bank
BofI Federal Bank (soon to be AXOS bank) offers a variety of business checking, savings and money market accounts designed to meet the needs of businesses of various sizes and transaction volumes. Bank of Internet USA is also working with BofI to become part of AXOS.
Account Details
- BofI scored two stars. Although they provide a good APY and sensible current and savings accounts, this is offset by high fees and a lack of overdraft protection.
- Key services include: Wire Transfers, ACH Origination, Remote Deposit Capture, Zero Balance Accounts, Information Reporting, Cash Management Solutions.
- BofI Payment services include: Premium Bill Pay, Smart Pay/Payment Portal, and Positive Pay.
- Typical APYs run from 0.8% to 1.06%.
- BofI monthly fees run from $0 to $200 depending on the type of account, averaging around $10. Higher fees are paid for more analysis and services from the bank.
- There are activity fees for several services, depending on the monthly fee you pay. Overdraft fees run around 18% APR on the outstanding balance.
Common Fees
Deposit processing $0.50, item deposits $0.10, check paid $10, outgoing wire transfer $15, manual transfer $5. Some of these fees only apply after limits are passed. Fees vary by account type.
Chase
Chase provides business accounts for small, mid-sized or large businesses to help companies manage their everyday expenses.
Account Details
- As is typical of the larger banks, Chase has a number of inflexible fees and does not pay a very high interest rate, which resulted in the score of two stars.
- Chase provides several different account types including Total Business Checking, Performance Business Checking, Platinum Business Checking, Total Savings and Premier Savings.
- Interest rates run from 0.04% to 0.11% depending on the type of checking or savings account.
- Chase Total Business Checking account has a $15 monthly charge for balances below $1,500. They provide 100 transactions per month at no charge, plus unlimited electronic deposits.
- Chase Total Business Checking services include: sending and receiving funds with wire transfers, Chase QuickDeposit, Chase Online Bill Pay, Chase Online Banking and Chase Mobile Banking.
- Chase has an insufficient funds/returned item fee of $34 per item paid each day (up to six items). Their extended overdraft fee is $15, which is charged each time an account is overdrawn for five or more consecutive business days.
Common Fees
Non-Chase ATM fee $2.50, international ATM $5, foreign transaction fee 3%, ACH fee of $25 for first 25 items. Fees vary by account type.
Citibank
Citibank provides banking to meet the challenges of today and plan for the future. They provide banking services for many different industries.
Account Details
- Unlike several of the other larger banks, Citibank has a competitive fee structure and provides overdraft protection and good cash deposit options, resulting in a rating of three stars.
- The CitiBusiness Flexible Checking Account provides several services including a linked debit card, overdraft protection, remote check deposit, cash management services, online services and a mobile app.
- There is a $22 monthly fee if you do not maintain a balance of $10,000.
- You can make 500 transactions a month without fees and deposit up to $20,000 of currency.
- There is no fee for the first 500 cumulative transactions of these types: checks paid, deposit tickets, deposited items, ACH debits and ACH credits. Wire transfer fees are $25.
- Citi offers overdraft protection by transferring money from other Citi accounts at a fee of $10
Common Fees
No ATM withdrawal fees, no fees up to transaction limit, $25 wire transfer fee, monthly fee if you do not maintain a minimum balance. Fees vary by account type.
Fifth Third Bank
Fifth Third Bank provides several types of easy-to-use checking accounts for streamlined business banking. They also offer several types of business savings accounts for longer-term deposits.
Account Details
- We rated Fifth Third Bank at two stars. They offer a good range of services, but fees are quite high and they do not offer interest on business current accounts.
- The business standard checking account charges an $11 monthly fee, and the Elite account charges a $35 monthly fee. These fees are waived if you meet certain criteria like a minimum balance.
- With the standard checking account, you can make up to 250 transactions or $5,000 in deposits a month free of charge.
- The business current accounts do not pay interest. Savings accounts do, but no rates are listed.
- Fifth Third Bank provides three types of business checking accounts as well as savings, money market and CD savings accounts.
- They also offer online and mobile banking, including deposits and bill pay.
Common Fees
$0.50 per item over limit, $26.25 for employee-assisted transfers, $33 to stop payments, $12.50 for returned items, $15.50 for incoming wires, $30/$50 for outgoing domestic/international wires, $37 overdraft fee per item, $8 per day overdraft fee.
KeyBank
KeyBank provides accounts built to work with cash flow strategy that provide access to the digital tools and resources for every stage of business growth.
Account Details
- We rated KeyBank at four stars due to their range of account services, relatively low fees, the option for an interest-bearing checking account and their local presence across several states.
- KeyBank provides three business checking accounts: Basic Business Checking, Business Interest Checking and Business Reward Checking.
- They also provide a regular business savings account and a money market account.
- Checking accounts have a monthly fee of between $5-$25; these fees are waived if certain criteria are met, like maintaining a minimum balance.
- The Business Interest Checking account provides interest rates of 0.05%-0.15% APY.
- They do not list fees for ATM withdrawals or overdrafts, although it is possible they charge for these services.
Common Fees
$0.40 per item over limit, $20 for incoming wire transfers, $30/$45 for outgoing domestic/international wire transfers.
PNC Bank
PNC provides checking account services to businesses with plenty of features included. They also provide powerful tools to help track and manage cash flow.
Account Details
- We rated PNC Bank at two stars as they offer a good range of services but do not have an everyday business savings account, and some of the fees are quite high.
- PNC provides two main types of business checking accounts: Business Checking and Business Checking Plus. They also provide Analysis Business Checking for treasury management.
- They do state that they provide a Business Interest Checking account, but no interest rates are listed.
- Business Checking has a $10 monthly fee, and Checking Plus has a $20 monthly fee. These fees are waived if certain criteria are met, like maintaining a minimum balance.
- Services include deposits, debit cards, transfers, online banking, bill pay, mobile banking and online statements.
- They also provide Business Money Market and Business Certificate of Deposit accounts for longer-term deposits, though interest rates are not provided online for these types of accounts.
Common Fees
$0.50 per item over limit, $15 for cashier’s check, $36 overdraft fee per item, $7 per day overdraft fee, $12.50/$20 for incoming domestic/international wire transfers, $30 for outgoing domestic wire transfers (variable fee for outgoing international transfers).
Radius Bank
Radius Tailored Checking is meant for rapidly-moving businesses. There is no need to count transactions because you’re afraid of penalties.
Account Details
- Radius Bank scored three stars due to paying a good APY, offering a flexible checking account and providing overdraft protection. Unfortunately, the lack of a savings account and local deposit options stopped it earning a higher score.
- Radius Tailored Checking account services include: online and mobile banking, mobile check deposit, debit cards, free ATMs worldwide, bill pay, electronic statements and more.
- There are no fees on standard deposits and some other transactions.
- There are fees levied on a number of other services including a $5 a day overdraft fee, expedited card delivery, foreign item collection and domestic/international wire transfers.
- Radius provides interest of 0.75% APY on balances of $10,000 and up.
- There is a monthly fee of $15 if your balance is less than $10,000.”
Common Fees
Overdraft fee of $5 a day and $25 per item, expedited cards $35, wire transfers between $10 and $40, foreign item collection $30. Fees vary by account type.
TD Bank
TD Bank understands that every business has times of transition, change and growth. They have a complete range of accounts, tools and services to support businesses.
Account Details
- We rated TD Bank at five stars due to their wide range of accounts, lower fees than their competitors and an extensive range of services.
- TD Bank provides three types of business checking accounts: Simple, Convenience and Premier.
- Services include deposits, online banking, bill pay and mobile banking.
- Checking accounts have a monthly fee between $10-$30. Some accounts allow this fee to be waived if certain criteria are met, like maintaining a minimum balance.
- They also provide a Business Interest Checking Plus account, although interest rates are not listed. Business savings accounts provide a 0.05% APY interest rate.
- Money market and CD accounts offer more competitive interest rates between 0.2%-2.48%.
Common Fees
$0.35-$0.75 per item over limit, $30 stop payment fee, $20 for returned items, $15 incoming wires (domestic and international), $25 outgoing domestic wire, $40 outgoing international wire, ATM fees, deposit fees, foreign transaction fees, $35 overdraft fee per item, $10 per day overdraft fee.
TIAA Bank
TIAA Bank helps organizations stay on the leading edge of today’s business world by providing banking products, solutions and services around the clock.
Account Details
- We rated TIAA Bank at four stars due to their excellent interest rates, low fees, overdraft protection, fee-free ATMs and low foreign transaction fees — they just lack a simple business savings account.
- TIAA Bank provides several checking accounts including Small Business, Business and Analysis checking.
- Checking accounts have a $15 monthly fee that is waived if certain criteria are met, like maintaining a minimum balance.
- They offer a couple of business savings accounts, specifically money market and CD accounts.
- TIAA offers excellent interest rates of between 0.2%-0.75% APY on checking accounts and up to 3.15% APY on CD savings.
- TIAA Bank has lower fees than many of their competitors, including better overdraft protection.
Common Fees
$0.25 per item over limit, $10 for cashier’s check, $30 for returned items, $30 overdraft fee per item, $25/$35 for outgoing domestic/international wire transfers.
Wells Fargo
Wells Fargo provides several different checking and savings accounts: Simple, Choice, Platinum and Analyzed Business Checking; Market Rate and Platinum Savings; and a Certificate of Deposit account.
Account Details
- As is typical of the larger banks, Wells Fargo has a number of inflexible fees and does not pay a very high interest rate. This resulted in a score of two stars.
- Wells Fargo provides several different checking and savings accounts: Simple, Choice, Platinum, and Analyzed Business Checking; Market Rate and Platinum Savings; and a Certificate of Deposit Account.
- Checking and savings account interest rates run from 0.01% to 0.3%, depending on balance.
- Accounts have a service fee of $10 or above unless you maintain a minimum balance.
- The Simple Business Checking account has no transaction fees on the first 50 items a month. After that, the fee is $0.50 per item.
- Overdraft fee is $35 per item paid or returned. An Overdraft Transfer from another Wells Fargo account to cover an overdraft is charged at $12.50.
Common Fees
Cashier’s checks $10 each, returned items $12, excess activity fee (applied to savings accounts) $15 per withdrawal or transfer, international debit card purchase transaction fee 3%, wire transfer $15 for incoming domestic/internal transfer, $30 for outgoing domestic/internal transfer. Fees vary by account type.
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