August 9, 2022
Truist Business Checking Review
If you’re looking for a traditional bank that provides a free debit card, waivable fees, and rewards as your business grows, Truist is an excellent choice. It offers two regular small business checking accounts: Simple Business Checking has no monthly fee with up to 50 free monthly transactions, whereas Dynamic Business Checking has a waivable $20 monthly fee and 500 free monthly transactions, including rewards based on your account balance. Truist also has a specialty account for nonprofits, Community Business Checking. This doesn’t have a monthly fee and offers 225 free monthly transactions and fee-free unlimited cash deposits. Prior to opening a business checking account, check out the features of Truist’s checking accounts to see if it matches your business needs. How Truist Stacks Up With Its Competitors See fullscreen table × When Truist Is a Good Fit Small business owners with a low monthly transaction volume and cash deposits: With Truist Simple Business Checking, you get up to 50 free transactions and up to $2,000 in cash deposits each month. Businesses that want to receive more rewards as their balances increase: The Dynamic Business Checking account has three checking reward levels that you can maximize for more merchant services, credit card discounts, and favorable lending rates. You also get more free monthly transactions and a higher free cash deposit limit. Businesses seeking a traditional bank: Truist has more than 2,500 branches in 16 areas: Alabama, Florida, Georgia, Indiana, Kentucky, Maryland, New Jersey, North Carolina, Ohio, Pennsylvania, South Carolina, Tennessee, Texas, Virginia, West Virginia, and Washington, D.C. When Truist Is Not a Good Fit Businesses that need in-person banking but are based outside Truist’s service areas: With branches being limited to 15 states and Washington, D.C., you can instead consider , , and for their nationwide presence. Business owners who want ATM fee refunds: Truist doesn’t reimburse ATM fees when you use out-of-network ATMs, so if you want refunds, you can opt for and . Businesses looking to earn an APY: Truist’s small business checking accounts don’t generate interest, while gives out 1.5% APY on qualifying deposits. Our guide to the best small business checking accounts has more options if your small business meets one or more of those scenarios. Truist Business Checking Overview Truist Business Checking Requirements You can visit the website to open a business checking account. You’re required to provide your personal and business information, including your business partners’ information, if applicable. You’ll also need to e-sign documents related to opening a business account. Personal information refers to full name, social security number (SSN), date of birth, country of citizenship, company title, email, phone number, and current address. Business information refers to business name, tax identification number (TIN), Incorporation type, NAICS sector, NAICS subsector, NAICS national industry, business classification, estimated annual revenue, state established, date established, and business address. Click on your business type to see the additional checking requirements: Truist Business Checking Features Truist business checking accounts offer personalized debit cards, online and mobile banking, and merchant services. Free Personalized Debit Card You can get custom-designed business debit cards with your own logo or custom art—or select a design from Truist’s gallery. You can even request additional personalized debit cards for your employee for free. Dynamic Business Checking Account Rewards Opening a Dynamic Business Checking account lets you enjoy more benefits through its reward levels. Truist combines the balance for all business accounts such as checking, savings, money market, and certificates of deposit (CDs). As your balances shift, you’ll move to the appropriate level automatically. The other incentives for opening a Dynamic Business Checking account are More miles with a Delta SkyMiles® Business debit card Loyalty bonus on Truist business credit card rewards redemptions No monthly maintenance fee for personal Truist Dimension Checking account Access to financial wellness training for your employees Additional fraud protection with IDnotifyTM Online & Mobile Banking Truist lets you pay your bills, control account access with user permissions, and manage your money online. You can also pay your employees through direct deposits, use automated clearing house (ACH) services for auto bill payments, perform wire transfers, and access Zelle for sending and receiving payments. Download the Truist mobile banking app on App Store and Google Play. Merchant Services Small business owners can access Truist merchant services that are specifically designed for different industries. Whether you need a mobile point of sale (mPOS), traditional or virtual terminals, or online payment gateways, various product options at competitive prices are available. Employee Benefits Partner If you want to attract and retain top workers, you can get Truist as your employee benefits partner. This enables you to offer a cost-effective compensation program, from financial and retirement planning to insurance services. Moreover, Truist Momentum, a financial wellness program, allows employees to access an online learning center and use MoneyDesktop for personal financial management. Other Business Checking Products Truist offers several specialty checking accounts, such as Community Checking for nonprofits Commercial Suite Checking Analyzed Checking/ Corporate Edge® Checking Analyzed Interest Checking Commercial Interest Checking Interest on Lawyers Trust Account (IOLTA) or Interest on Trust Account (IOTA) or Minor Judiciary Interest on Trust Account (MJ-IOTA) or Maryland Housing Trust Account (MAHT) Basic Public Fund Checking Public Fund Interest Checking Public Fund Analyzed Checking Analyzed Interest Checking - Public Funds Public Special Money Rate Checking Other Banking Products Business savings: With a minimum deposit of $100, you can build your reserve funds with Truist Simple Business Savings. Business money market: For a minimum deposit of $100, you can place your money into higher yield savings with Truist Business Money Market. Business CDs: For guaranteed returns, you can grow your savings by opening business CDs with terms ranging from 7 days to 10 years Credit cards: Truist’s credit cards offer cash or travel rewards, no annual fee, and lower interest rates. You can choose between a Truist Business Credit Card, Truist Business Travel Rewards Credit Card, or a Truist Business Cash Rewards Credit Card. Lending: You can apply for financing through Truist’s small business loans, small business auto loans, small business commercial vehicle and equipment loans, small business real estate loans, and small business lines of credit. Insurance: McGriff and Truist Life Insurance Services provide general liability insurance, property insurance, workers’ compensation, auto insurance, cyber liability, professional liability, and bonding and surety. Truist Business Checking Pros & Cons Truist has excellent business checking accounts that cater to business owners who are starting out and growing their small businesses. It provides the first four incoming domestic wire transfers for free to Dynamic Business Checking account holders. You’re also given a $25 or $50 discount on your first check order, no matter the type of business checking account you open. Lastly, Truist offers a financial wellness program for your employees. The bank’s drawbacks include limited in-person banking, as it has physical locations in only 15 states plus D.C. Additionally, its Simple Business Checking account restricts you to 50 free monthly transactions, one of the lowest among financial institutions, and its checking account for nonprofits lacks free wires. Alternatives to Truist Business Checking Truist has excellent business checking account options, but if you prefer to earn interest with a basic checking account, want a traditional bank with a national presence, and don’t mind a digital account as long as there’s no minimum opening deposit, you can check out these three alternatives: is optimal for businesses that prefer a bank with no required opening deposits and whose banking needs can be served by a digital-only bank. is ideal for businesses seeking a traditional bank with a national presence. It has several branches in 48 states. is a good option for businesses that want an online bank that offers a high APY when required balances are met. Bottom Line The Simple Business Checking account of offers sole proprietors and startups with low transaction volumes no monthly fees. As your business grows and your transaction needs increase, you can open a Dynamic Business Checking account, where you get more rewards. Truist also has business savings, small business loans, and a financial wellness program that benefits your employees, making it an outstanding choice for your small business.
August 8, 2022
How To Close a Business Checking Account in 8 Steps
You might be closing your business checking account because you are unsatisfied with your current financial institution or your business needs have changed, requiring different banking services. A new business checking account might offer a better annual percentage yield (APY), more perks, and other business services that can support your company. We’ll cover how to close a business checking account in eight steps. This process will ensure minimal impact on your business and limit any disruption to your clients and customers. Step 1: Open a New Business Checking Account As long as your business isn’t dissolving, you’ll need a new business checking account, one that serves your business needs, before closing your old one. If you haven’t chosen a new bank, check out our list of the leading small business checking accounts. When you pick one, see our guide on how to open a business bank account. is an excellent choice for a new business checking account. It offers 2.0% APY on balances of $100,000 or less and is the best small business line of credit on the market. Visit Bluevine’s website for more information. Step 2: Make Sure All Outstanding Checks Have Cleared When closing a business bank account, you must ensure that all issued checks have cleared your account before closing. Once your account is closed, the bank will return any checks that arrive at the bank. This could delay payments to customers and vendors, cause aggravation, and possibly damage your business. Once you have your new business checking account, start issuing checks from the account as soon as possible. If you have the finances to have some overlap between the opening of your new account and the closing of your old account, this should give you ample time for all checks to clear. Step 3: Transfer All Automatic Withdrawals to New Account Not only do you need to ensure that all checks clear your account, but you also need to see to it that any recurring automatic withdrawals from your old account are transferred to your new one. You should keep a master list of these withdrawals as part of your business accounting, so it should be easy to make sure they all get moved before closing the account. Like checks, any auto withdrawals that hit your account after closing will be returned unpaid, which could cause problems for your business. Step 4: Gather All Documents Needed for Account Closing There will be several documents you want to have on hand before closing your account. It includes information the bank will need to process the closing. Those documents could include: The name of your business The address of your business headquarters Business incorporation/partnership documents, which should include banking details, registration information, incorporation or partnership date of formation, and business structure Information detailing who has the authority to open and close accounts Information about any outstanding debts to the bank, if applicable A letter formally requesting the closing of the account, the accounts being closed, and where the funds in the account are to be transferred Most of this information is similar to what you used to open your new business checking account. Step 5: Determine Who Must Initiate Account Closing If your business is a sole proprietorship or a partnership, figuring out who has the authority to close a bank account should be straightforward. However, it may be a little more complicated if your business is structured as a limited liability company (LLC) or a corporation. Your company’s business organization documents should state who has authority to conduct financial transactions, including opening and closing accounts. It may be one singular person, or it may be a group of people. Find out who is responsible, and make sure they sign your formal request letter. Step 6: Have Authorized Persons Notify the Bank of Account Closing Once you have the formal request letter signed by the authorized persons, it is time to send it to your financial institution to close the account. This can be done by mail, email, or in person at a branch. Depending on your bank, you may have to complete the closing process in person at a bank branch. For online-only banks and other large corporate banks, you may be able to handle the whole process over the phone or online. In some cases, the letter may be enough to close the account, with the bank either transferring the funds electronically or sending you a cashier’s check in the name of the business. Your old bank might make you repay debts owed to the bank before closing the account. You should do this before transferring funds to your new account. Step 7: Transfer Funds From Closing Account to New Account This step can be done before closing or when the account is closed. As long as you have ensured all checks have cleared and auto withdrawals have been moved to your new account, you can transfer funds to your new account at that point. Regardless of whether you transfer funds before the account is closed or at closing, there could be wire transfer fees involved. Step 8: Finalize Account Closing The final step is to ensure the closing is finalized with your old bank. This is completed once you have signed whatever documentation they require to close the account and the funds have been transferred to your new account. Other Considerations When Closing a Business Checking Account While the steps above should cover almost every potential issue that might arise when closing your business checking account, there are a couple of more things you might want to consider when closing an account. What To Do if Your Company Is Dissolving When your company dissolves, you must decide what to do with the remaining business finances. This should be spelled out in your partnership or corporation agreement to avoid any issues wrapping up the company. Generally, your bank should allow you to leave your business checking account open long enough to allow the final checks to clear and to process any end-of-business expenses that might arise. You generally won’t be able to do new business with the account. You should contact your bank immediately and let it know when your business dissolves. With the assistance of your business organization agreement, it should be able to help you through the final days of your business before the account is closed and funds are distributed. If your business dissolves, any existing business lines of credit with your bank will likely go from a revolving credit account to an amortizing loan. All parties in the company will likely be liable for the debt, so keep that in mind. Avoid a Dormant Business Checking Account One reason you might close a business checking account is that you simply don’t use it anymore. It’s possible you opened it to take advantage of some introductory cash back or APY offer but never used it as your primary account. Once you go 12 months without a transaction, your account will become inactive. After 24 months, it will become a dormant account. Once that happens, the funds will be turned over to the state, and the account will be closed. You can petition the state to return your funds, but it is much easier to close the account if you’re not using it. Differences Between Closing a Business Checking and Business Savings Account Closing a business savings account is much easier than closing a business checking account. Because savings accounts have limited transactions, it should be straightforward to ensure all withdrawals are accounted for before closing the account. Plus, if you have a business checking account at the same bank and are not closing that account, you can transfer the funds from your savings to your checking and close the savings account. You can do it for free if you haven’t exceeded your monthly transaction limit on your savings account. Bottom Line Generally, closing a business checking account is a straightforward procedure. Of the eight steps listed, four are critical. Ensure you have a new account open before closing your old one and see to it that all outstanding checks have cleared. Check that automatic withdrawals are changed or canceled and, finally, know who in your business has the authority to close the account. If you follow the steps in this guide, you should be able to close your business checking account with minimal impact on your business.
August 8, 2022
Dormant Bank Account & What It Means For Your Business
A dormant business bank account occurs when an account has no owner-initiated transactions for more than 24 months. These include withdrawals, deposits, and transfers consisting of cash, checks, automated clearing house (ACH), and wire transactions. Interest accrued isn’t considered a transaction to keep an account active. Dormant business bank accounts occur most often with companies that closed. If you only have one business bank account and it becomes dormant, chances are your business is already in financial trouble. If the dormant account is one your business doesn’t use anymore, it likely won’t significantly impact your business. If you’re looking for a new business bank account, is an excellent choice. You can earn a 2.0% annual percentage yield (APY) on balances up to $100,000. You can keep track of your account 24/7 on its mobile app and website, avoiding any potential dormancy issues. Visit Bluevine for more information. How a Business Bank Account Becomes Dormant Before a business checking account becomes dormant, it first becomes inactive. An account is classified as inactive if there are no owner-initiated transactions for 12 months. Some banks might reach out at this point to notify you that your account is now inactive. After another 12 months without activity, it becomes dormant, and your bank may charge a monthly fee while it is. The bank will turn over any funds left unclaimed in dormant accounts to the state as abandoned funds. But before it does this, a dormancy period must elapse. During that time, it’ll notify you that your account has become dormant and attempt to return your funds or allow you to make the account active again. What To Do When Your Account Becomes Dormant If you receive a notification that your account has become dormant, you have three options: Make a transaction and reactivate the account: As long as the bank hasn’t turned the funds over to the state, you can still initiate a transaction on the account, which reactivates it. Withdraw or transfer the remaining funds and close the account: If you aren’t using the account and don’t need it, you can transfer the funds or withdraw them and close the account. Check out our guide on how to close a business checking account. Do nothing, and the funds will be turned over to the state: The worst option would be to do nothing. Once the dormancy period ends, the escheatment process will begin, and the bank will turn over the funds to the state. At this point, you’ll have to attempt to reclaim those funds from the state. Escheatment Process & Retrieving Unclaimed Funds If the bank cannot contact the account owner to notify them of their dormant account, it will turn the funds over to the state in a process called escheatment. Escheatment can occur once the state-required dormancy period has expired. Each state establishes its own rules for its dormancy period. Generally, the period begins with the last owner-generated transaction on the account, such as a deposit, withdrawal, and check issue date. The bank account dormancy periods are listed below for all 50 states and Washington, D.C. Some states will have specific rules in addition to the dormancy period, so if you’re looking for more information, or are interested in reclaiming funds, visit the website of the Federal Deposit Insurance Corporation (FDIC) for its list of unclaimed property information or the National Association of Unclaimed Property Administrators (NAUPA) for unclaimed property links. You can also contact your state’s treasurer’s office or your bank. You will lose your rights to your unclaimed funds within five to seven years of being transferred to the state. How to Avoid Dormant Business Bank Accounts Dormant business bank accounts occur less frequently than dormant personal bank accounts. The reason is simple: Businesses should have financial experts keeping track of where the company’s finances are located. It should be much more difficult for a business account to remain open, without transactions, for a long enough time for the account to become dormant. Here are tips to avoid dormant business bank accounts: Plan for what happens to accounts if the company dissolves: One of the most common ways business bank accounts become dormant is when companies become dormant. When drawing up a business plan and organization documents, detail what happens to bank accounts in the event of business failure. Choose an account with online and app access: Almost every business bank account has an app or at least online access. Use that to keep track of your accounts and be mindful of accounts that are not used regularly. Close unneeded accounts, especially if you’re being charged to keep them: Don’t keep accounts you don’t need, especially if there are monthly fees. You don’t want a situation when an account becomes overdrawn due to fees. If the money is earning you interest, keep it, but make sure you have regular transactions on the account. Schedule regular transactions in accounts with infrequent usage: If you need to keep an account open because it earns you interest, schedule regular transfers into or out of the account. This allows you to keep the account open without worrying about it becoming dormant. Bottom Line While a dormant business bank account won’t likely devastate a healthy business, it does become a hassle if you must reclaim abandoned funds from the state. If your only business bank account becomes dormant, there is a good chance your business is struggling. Make sure your financial expert monitors where you have business bank accounts open. They should also ensure regular transactions for all your accounts to avoid them becoming dormant.
August 5, 2022
America First Basic Business Checking Review
If your small business needs an affordable checking account that also provides access to other useful banking services, the America First Basic Business Checking account is a great option. It charges no monthly fees and imposes no minimum balance requirements. It comes with 250 fee-free transactions, including written checks, deposited checks, and deposited items, each month and charges a fee of 15 cents for every transaction after the limit. America First also offers savings accounts, money market accounts, business certificates, lending products, and other business services. For those in a geographic location or career served by America First, its basic business checking is a great product. How America First Stacks Up With Its Competitors See fullscreen table × *To waive Self-Help FCU’s monthly fee, users must maintain a minimum balance of $25,000 across all accounts (checking, savings, and certificates). When America First Is a Good Fit You make 250 or fewer transactions per month: The America First Basic Business Checking account was designed for businesses with low transaction volumes and provides 250 fee-free transactions per monthly statement cycle. You need access to a full range of banking services: Aside from business checking accounts, America First also offers savings products, lending products, and business services. You prefer in-person banking and operate within Utah, Idaho, Oregon, New Mexico, Arizona, or Nevada: America First has 131 brick-and-mortar locations, mostly concentrated in Utah and Nevada. You qualify for an America First Credit Union Membership: Membership to America First isn’t open to everyone. Visit the company’s website for membership information. When America First Is Not a Good Fit You want to earn interest on checking balances: America First Basic Business Checking doesn’t earn interest. Businesses wanting to grow their checking balances through a credit union can look into , which can earn interest at a rate of 0.05% or 0.10%. You make more than 250 transactions per month: The America First Basic Business Checking account charges a 15-cent fee for every transaction that goes over its limit of 250. A better option would be , which offers unlimited fee-free transactions. You prefer in-person banking but operate outside America First’s jurisdiction: Though America First has many brick-and-mortar branches, it only operates in the states of Utah, Idaho, Oregon, New Mexico, Arizona, and Nevada. Businesses needing in-person banking access should look into , which has over 4,700 branches across the country. If your small business meets one or more of these scenarios, see our guides to the best small business checking accounts and leading small business credit unions for additional recommendations. America First Basic Business Checking Overview America First Basic Business Checking Requirements Applicants wanting to open a business bank account need to apply for membership with America First Credit Union. Only individuals who meet the following criteria qualify: Those who live, work (or regularly conduct business in), worship, volunteer, or attend school in select areas in Utah, Arizona, Idaho, Oregon, New Mexico, or Nevada. Owners, employees, or suppliers involved in the Utah food industry Members and employees of America First’s select employer groups (SEG) or affiliated associations Immediate family members or household members of existing or eligible America First members Spouses of members who died within the field of membership Employees of America First Federal Credit Union or its subsidiary corporations The application form will ask all signers for the following: Name Address Phone number Date of birth Social Security number ID information Existing account number (if applicable) Applicants must also prepare certain business documents. Click on the tabs below to see the requirements per entity type. America First Basic Business Checking Features The America First Basic Business Checking account comes with 250 fee-free transactions per month, a free Business Visa Debit Card, and digital banking. 250 Free Transactions Under the America First Basic Business Checking account, businesses can make 250 transactions per monthly statement cycle. America First defines “transactions” as written checks, deposited checks, and deposited tickets. Subsequent transactions after the limit of 250 cost 15 cents per item. Business Visa Debit Card The America First Basic Business Checking account comes with a free Business Visa Debit Card that’s accepted in over 23 million locations worldwide. It can function as a debit, ATM, or credit card. Businesses needing extra funds have the option to apply for limit increases on their card. Digital Banking America First customers can access their checking accounts through America First’s website, iOS app, and Android app. Digital Banking lets customers transfer money, pay bills, apply for loans, check FICO scores, track spending, review debts, manage budgets, and calculate net worth. Other America First Business Products Other Business Checking Accounts America First offers three additional business checking accounts: Premier Business Checking for businesses with higher transaction volumes, High Yield Business Checking for businesses wanting to earn interest, and Non-Profit Business Checking for nonprofit corporations and associations of members. Premier Business Checking: It’s designed for businesses that make more than 250 transactions per month and has a monthly maintenance fee of $8. It charges 15 cents per written check, 15 cents per deposit, and 5 cents per deposited item, with no transaction limits. Account balances earn credits that customers can use to offset fees. High-Yield Business Checking: The America First High-Yield Business Checking account has a monthly fee of $50 and earns interest at a rate of 0.05%. It charges 15 cents per written check, 15 cents per deposited item, and 5 cents per deposited check. Accounts need a minimum of $10,000 to open an account and a minimum of $2,000 to earn interest. Non-Profit Business Checking: Like Basic Business Checking, Non-Profit Business Checking offers 250 fee-free transactions per month and charges no monthly fee. After the limit, transactions cost 15 cents per item. Non-Profit Business Checking earns interest at a rate of 0.05%. Business Visa Credit Card America First Business Visa Credit Cards can earn either cash back or rewards. Points can be redeemed for cash, travel, merchandise, and items at the America First online store. Business credit cards come with Visa Business Reporting, a tool that tracks and analyzes card spending. Chip-enabled (EMV) and Card Guard protect America First credit cards from fraud and theft. Business Savings Products America First’s business savings offerings include Business Share Savings, Business Money Market Savings, Dedicated Savings, Health Savings (HSA), and Business Certificates. Business Share Savings: America First members receive a Business Share Savings account automatically after applying. It has no monthly fees, has no fees or limits for withdrawals and deposits, and earns interest at a rate of 0.05% on balances that meet the minimum requirement of $1. Business Money Market Savings: This account has a tiered APY system that lets businesses access higher interest rates as their balances increase. Balances from 1 cent to $4,999.99 earn interest at a rate of 0.05%, while balances of $5,000 to $249,999.99 earn interest at a rate of 0.10%. Balances worth $250,000 and above earn interest at a rate of 0.15%. The account has no fees or limits for withdrawals and deposits. Dedicated Savings: To help businesses save for future expenses, the America First Dedicated Savings account deducts shares from a main account automatically on a monthly basis, then earns interest on the deducted funds over a set period of time. The minimum a main account can contribute is $10, while the maximum is $10,000. Accounts can hold a maximum of $100,000. Health Savings: Through America First’s HSA offerings, employers can give their employees fee-free health savings accounts with low premiums and high deductibles. Employers can make pre-tax contributions to their employees’ HSAs through checks or ACH. Business Certificates America First offers regular business, bump business, flexible business, and ladder business certificates. The minimum opening deposit for any America First business certificate is $500. Regular Business: America First’s most basic business certificate offers terms as short as three months to as long as five years. APY is 0.60% for the shortest terms and 1.80% for the longest terms. Bump Business: Unlike regular business certificates, which have fixed rates, bump business certificates give account holders the option to move their funds to higher rates when rates increase. APY is 0.45% for the shortest term of three months and 1.65% for the longest term of five years. Flexible Business: This gives businesses penalty-free access to their certificate balances during the first five calendar days of each quarter. Currently, only 12-month flexible certificates are available. Ladder Business: This sets up CD ladders that ladder the maturity rates of certificate accounts automatically, giving businesses access to premium rates while offering more flexible access to their money. Business Loans The lending products America First offers include lines of credit, vehicle loans, equipment and machinery loans, unsecured capital loans, business acquisition loans, and commercial real estate loans. Lines of credit: Businesses can connect their America First checking accounts with lines of credit to access funds for necessary business expenses, including inventory, late invoice payments, and repairs. Monthly payments can be as low as $25 or 35% of the balance. Vehicle loans: Businesses can access low-rate loans with terms up to 72 months to purchase new company vehicles. Fees apply if loans exceed $50,000. Equipment and machinery loans: These can pay for industrial equipment, medical equipment, or additional business equipment. Loan terms can last as long as seven years. America First charges low down payments and has no pre-payment or annual fees. Unsecured capital loans: Businesses can access funds without providing collateral using America First’s unsecured capital loans. Loans have a maximum amount of $15,000 and a maximum term length of 60 months. Business acquisition loans: America First offers competitive rates for business owners looking to purchase franchises or independent businesses. Details are available upon request. Commercial real estate: Businesses needing to buy, build, or improve business properties can connect with America First to access commercial real estate loans, which charge as little as 10% down payment and can have term lengths as long as 25 years. Financing for acquisition and construction are both available. Business Services Additional services America First offers include business ACH, speech access, merchant services, and payroll services. America First business accounts integrate with Zelle for payments and Intuit QuickBooks to simplify the process of inputting banking data into accounting records. America First also has a business resources page that describes useful business banking products and services in detail. And through its partnership with Live Plan, businesses can use software to create better business proposals. What’s more, America First Business Registration Services can help new business owners manage paperwork through the different steps of establishing a business. These include incorporating, getting a doing business as (DBA) name, obtaining an employee identification number (EIN) tax ID, and formulating operating agreements. America First Basic Business Checking Pros & Cons With no minimum balance requirements or monthly maintenance fees, the America First Basic Business Checking account is affordable to open and maintain. Choosing America First as a banking institution gives businesses access to a good selection of banking services, including savings products like savings accounts, money market accounts, CDs, lending products like lines of credit and loans, and business services such as software integration and business registration assistance. The America First mobile app, available on iOS and Android, is often praised for being intuitive and easy to use. However, America First cannot accommodate customers needing access to in-person banking services unless their businesses operate within Utah, Idaho, Oregon, New Mexico, Arizona, or Nevada. Additionally, the America First Basic Business Checking account doesn’t earn interest and charges steep fees for wire transfers. Plus, you must be a member of America First Credit Union, and that isn’t open to everyone. Alternatives to America First Basic Business Checking The America First Basic Business Checking account was designed specifically for smaller businesses with lower monthly transaction volume. If you run a larger business, or simply have other banking needs America First cannot address, here are three options to consider: is best for affordable wire transfers. Under Relay, receiving wire transfers is free, while sending domestic wire transfers costs $5 for domestic recipients and $10 for international recipients. America First charges $10 to receive wire transfers, $15 to send domestically, and $30 to send internationally. is ideal for cash back on debit card purchases. Its debit card earns 1% cash back on all online and in-store debit card purchases, whereas the America First business debit card earns no rewards. is great for earning competitive APY. With Bluevine, qualified business checking accounts can earn interest at a rate of 2.0%. The America First Basic Business Checking account doesn’t earn interest. Bottom Line America First Basic Business Checking is a great option for businesses with low transaction volumes. Because the credit union also offers business savings products, lending products, and business services, it’s also a good choice for businesses wanting all of their banking activities under one platform. However, if your business relies on in-person banking and operates outside of Utah, Idaho, Oregon, New Mexico, Arizona, or Nevada, America First may not be able to accommodate your needs.
August 5, 2022
Brex Cash Review: Cash Management Account
For businesses that qualify, Brex Cash Management Account is an excellent business checking product. Your funds can earn a high-interest yield and are protected with up to $1 million in Federal Deposit Insurance Corp. (FDIC) insurance. In addition, you get access to the Brex Card, a unique and powerful business credit card product. Recently, Brex tightened its qualifications for a Brex Cash Management Account. To be sure of qualification, your business and your potential Brex account will need to meet one of the following criteria: Received an equity investment of any amount, such as an accelerator, angel investor, venture capitalist, or web3 token) Have more than $1 million a year in revenue Have more than 50 employees Have above $500,000 in cash Are a tech startup that’s on a path to meeting the criteria above and is referred by an existing customer or partner If you don’t meet these, you can contact Brex to see if your business qualifies as businesses that might soon meet one of the criteria and may still be eligible for an account. You can also check out our list of the best Brex Cash Management Account alternatives. How Brex Cash Management Account Stacks Up With Its Competitors See fullscreen table × *Providers are financial technology (fintech) platforms backed and FDIC-insured through a supporting bank partnership (10 program banks are partnered with Brex; Evolve Bank & Trust for Mercury, and Coastal Community Bank for Bluevine). When Brex CMA Is a Good Fit We recommend Brex for the following scenarios: You make frequent money transfers: If you need to transfer money frequently, Brex is an excellent choice, as all ACH, check, and wire transfers are free. You don’t need to deposit cash: If your business doesn’t deal with cash regularly, Brex is ideal because it doesn’t accept cash deposits. You don’t need to withdraw cash: If your business doesn’t need to withdraw cash from an ATM, Brex is a good choice because the Brex Card doesn’t allow you to withdraw at an ATM. You have an advanced startup or a scaling business: Because of Brex’s new qualification requirements, if you have an advanced startup―with at least $1 million in annual revenue―or a scaling business, Brex is a good fit. When Brex CMA Isn’t a Good Fit While Brex offers a great online banking product, it might not be the best fit for your business. You might choose an alternative in the following scenarios: Your business needs to deposit cash regularly: Brex doesn’t allow you to deposit cash. If you’re depositing cash constantly, you might consider a bank with a physical location, such as , , or . You need to withdraw cash from your account for your business: The Brex card doesn’t allow you to withdraw cash at all. is a good digital banking alternative because it refunds all ATM fees at the end of each month. You need a full-service digital bank: While Brex offers some great business services, it doesn’t offer lending products. If you need a full-service digital bank, is a great choice. Brex CMA Overview *Brex is a business fintech platform, which partners with 10 program banks that are FDIC-insured. Brex CMA Requirements To qualify for an account, Brex has a list of requirements your business must satisfy. For more information on how to open a business checking account, check out our guide to opening a business bank account, which includes a convenient checklist to help you through the process. Brex Cash Features Brex’s Cash Management Account has some great features that can benefit your startup or scaling small business. Brex Cash Management Account Brex Cash serves as a business checking account. It has no opening deposit and minimum balance requirement, no transaction limit, and no monthly fees. All incoming and outgoing wires and ACHs are free, domestic and international. Brex also allows you to invest extra funds in a money market, which is currently earning up to 1.46% APY. You cannot order physical checks, but you can send them from the app. While you cannot deposit or withdraw cash with Brex, you can issue an unlimited number of Brex Cards for free. A significant advantage the company provides is spreading your funds across 10 program banks. This allows your funds to be insured by the FDIC for up to $1 million instead of the usual $250,000. Brex Card One of the biggest perks of Brex Cash is the Brex Card. It combines the credit-building benefits of a business credit card with access to your Cash Management account of a debit card. You can choose the daily or monthly payment option with the Brex Card. Daily payment comes with every Brex Cash account while monthly requires an application. Both are fee-free, with no personal guarantee required, and report to credit bureaus, as with other business credit cards. The terms, benefits, and qualifications of each card are listed in the table below. The Brex Card offers 7x points on rideshares, 4x on Brex travel, 3x on restaurants, 2x on software, and 1x on all other spending. You can issue unlimited cards with custom limits and track team expenses. It comes with Mastercard Zero Liability Protection to protect your users from fraud. One downside is your company must be organized with an EIN to qualify. It’s unavailable to sole proprietors and other unregistered businesses. Brex Empower Brex’s latest product is its spend management program called Brex Empower. It allows you to control and monitor several aspects of your business finances. You can contact Brex’s sales department for more information about this product and any fees involved. Budgets: You can give employees a preapproved spending amount for a specific purpose. They can use a single Brex Card to spend from different budgets and can even update budgets from the Brex dashboard at any time. Several other budget features can be controlled, including approvals and policy creation. Expenses and reimbursements: You can control these using a Google Chrome extension, allowing the upload of receipts with one click. You can also leave comments on expenses and auto-validate receipts. Expenses can be split or itemized and reimbursed, and bills can be paid automatically. Integrations and application programming interfaces (APIs): You can integrate with Sage Intacct, QuickBooks, NetSuite, and more. There are extended API support, automated human resources information system (HRIS) offboarding, and universal enterprise resource planning (ERP) support via comma-separated value (CSV) files. Global support: Brex Cards will work in more than 100 countries. You can see transactions in your company’s base currency and in the local currency where expenses occurred. All cards―physical and virtual―can be set with a PIN, and physical cards include chips for extra security. Brex Integrations Outside of Brex Empower, the company offers dozens of integrations with companies in ERP/procurement, HRIS, workflow automation, and comms/authentication. Visit Brex’s website for the complete list of integrations available. Brex Rewards In addition to the Brex Card rewards, you can use Brex points to purchase Billboard advertising, executive coaching, team off-sites, and more. You can even extra Brex points by purchasing those items with cash on the Brex Card. Brex also offers partner rewards of more than $180,000. Companies offering those rewards include AWS, Apple, QuickBooks, UPS, Gusto, Slack, Google Ads, Vouch, Experian, and Freshworks. You can also earn 4x on travel, redeeming points for miles with Aeromexico, Air France KLM, Avianca, Singapore Airlines, Emirates, Asia Miles, and Qantas. Brex Expenses You can text or email receipts to Brex, and it’ll match them to expenses. You can sync expense data across systems to automate reconciliation. Custom spend reports that find ways to save your company money are also available. Spending can be tracked in real-time on the app. Unique Brex Cards can be created for free with custom limits for each subscription, vendor, and employee. Brex Bill Pay You can manage all bills in one place. Invoices can be paid by forwarding an email, and you won’t pay transaction fees. You can send payments from wire, ACH, or check for free, even internationally. You can also auto-sync with Xero or QuickBooks. Brex Pry Brex offers Pry, a platform that helps founders manage budgets, hiring plans, financial models, and runways. It lets you get accurate financial forecasts in real-time and create scenarios to plan for different possible financial scenarios. Interactive dashboards show you real-time financial data to help display your current financial picture. Brex CMA Pros & Cons For incorporated businesses looking for a largely fee-free banking experience, Brex is an excellent choice. It has no minimum balance and opening deposit requirement, has no monthly fees, offers free wires and ACH transfers, and provides an unlimited number of fee-free Brex Cards. However, businesses dealing with cash or needing physical locations might consider an alternative. Also, sole proprietors and unregistered businesses are ineligible, and other businesses might find eligibility more difficult with Brex’s recently-tightened requirements. The Brex app is very highly rated on both Google Play and App Store. It has 4.4 out of 5 stars on Google Play (out of more than 630 reviews) and 4.9 out of 5 stars (with more than 1,600 reviews) on the App Store. Most users raved about the app's interface on both systems, while some negative reviews revolved around accounts recently closed with Brex’s tightened qualification requirements. Alternatives to Brex CMA While Brex offers a great Cash Management Account product, it might not be the best fit for your business. Alternatively, your business may not qualify with Brex’s more stringent qualification requirements. If you need a digital bank that caters to tech companies and startups, has a checking that earns interest, or offers full-service banking products, you may want to consider one of the following alternatives: : Best overall for incorporated tech companies and startups, with great third-party software integrations and $200 cash back if you spend $2,000 on your debit card in the first 90 days. : Best for a business checking account with a high-interest yield and for businesses that occasionally need to deposit cash, as you can do that at Green Dot Retail Locations for $4.95. : Best for businesses wanting the same full-service banking options a traditional brick-and-mortar bank provides with the convenience of a digital-only bank. Bottom Line If your business qualifies and primarily lives in the digital finance space, Brex Cash is a great option. Brex’s Cash Management Account and the Brex Card give you a largely fee-free banking experience. With the ability to spread funds across Brex partner banks, you can have up to $1 million insured by the FDIC. See if your business qualifies and if Brex’s features fit your business model. If so, Brex is an excellent choice.
August 4, 2022
PNC Bank Business Checking Review
is an excellent traditional bank that provides three business checking options: Business Checking, Business Checking Plus, and Treasury Enterprise Plan. It comes with waivable monthly fees, access to merchant services, Cash Flow Insight® tools, and online and mobile banking. For basic business needs, you can open a Business Checking account. If you have higher cash deposit needs and transaction volumes, you can apply for Business Checking Plus or Treasury Enterprise Plan. How PNC Bank Stacks Up With Its Competitors See fullscreen table × When PNC Bank Is a Good Fit Your business has a low transaction volume: If your transactions don’t reach 150 and your cash deposits are below $5,000 each month, you can open PNC Bank’s Business Checking account and avoid paying additional bank fees. You want to benefit from a full suite of banking services: You can apply for Small Business Administration (SBA) loans, get business credit cards, and take advantage of PNC Bank’s merchant services. You’re looking for a bank that offers rewards for opening a business checking account: PNC Bank gives out a cash bonus of $200 or $500, depending on the business checking product you open. See these qualifying conditions before applying. You prefer having access to a physical branch: PNC Bank has more than 2,500 bank locations in 28 states and Washington, D.C.: Alabama, Arizona, California, Colorado, Delaware, Florida, Georgia, Illinois, Indiana, Kansas, Kentucky, Maryland, Massachusetts, Michigan, Minnesota, Missouri, New Jersey, New Mexico, New York, North Carolina, Ohio, Pennsylvania, South Carolina, Tennessee, Texas, Virginia, Washington, D.C., West Virginia, and Wyoming. You’re looking for a business auto loan provider with low-cost financing: If you’re located in one of the states served by PNC Bank, you can borrow up to $250,000 for up to 72 months. This is why it’s part of our list of the best business auto loan providers. When PNC Bank Is Not a Good Fit Your business is based outside PNC Bank’s locations: Its brick-and-mortar branches are found in only 28 states plus Washington, D.C. You can consider alternatives like , , and , each with a strong branch presence in more states. You prefer a free checking account and only require a digital bank to satisfy your business needs: While PNC Bank has online banking, you can opt for fully digital banks that offer fee-free checking accounts, such as , , and . Your business sends wire transfers frequently: PNC Bank’s outgoing wire fees are substantially higher than other banks. You can choose , , Axos Bank, or Wells Fargo for free or lower wire fees. PNC Bank Business Checking Overview *To waive fees, account holders must meet at least one of the following conditions: Business Checking Maintain a $500 average monthly collected balance, or Use a linked PNC business credit card to make a minimum of $500 in eligible purchases, or Maintain a linked PNC Merchant Services® account and generate a minimum of $500 in qualifying monthly processing deposits Business Checking Plus Maintain a 5,000 average monthly collected balance, or Use a linked PNC business credit card to make a minimum of $5,000 in eligible purchases, or Maintain a linked PNC Merchant Services® account and generate a minimum of $5,000 in qualifying monthly processing deposits, or Maintain a $20,000 average combined collected balance in a linked PNC business checking account and business money market account Treasury Enterprise Plan Maintain a $30,000 average combined monthly collected balance in all checking accounts within your Treasury Enterprise Plan, including beneficiary accounts, or An earnings credit is applied to the average monthly collected balances in excess of $125,000 to reduce or offset certain transaction fees PNC Bank Business Checking Requirements You can visit the to open a business checking account; you’ll need to provide your business’s tax identification number (TIN) and a valid e-mail address. If you open an account at a PNC branch, you must present two IDs. It can be one primary government-issued ID and one secondary ID or two primary government-issued IDs: Primary ID: Driver’s license, passport, state-issued or authorized city-issued ID, resident alien ID, military ID, veteran’s healthcare ID, firearm ID, or global entry card Secondary ID: US visa, paystub, home rental agreement, utility bill, major credit or debit card, or vehicle registration The bank will also ask for documents verifying your business registration and your authority to act on behalf of and control, manage, or direct the business. Information regarding the individual Beneficial Owners of the business—those who own, directly or indirectly, 25% or more of the equity interests of the business—will also be collected by the bank. They’ll need to provide their legal name, Social Security number, date of birth, address, citizenship, and percent of ownership. Click on the tab of your entity type to view the bank’s additional business checking requirements. Check out our guide on how to open a business bank account, which includes a free downloadable checklist of required documents. PNC Bank Business Checking Features PNC Bank’s Business Checking account offers a Visa debit card, waivable monthly fees, mobile and online banking, Bill Pay, and access to PNC Merchant Services®. Debit Card with Rewards PNC Bank issues a free secure Visa® business debit card equipped with contactless card technology. It can be requested through the phone or at your branch—get instant issuance at selected PNC branches. You can also provide your employees with debit cards for easy expense tracking. To earn debit card cash backs, visit the Rewards Center through Online Banking to activate offers when you shop and dine using your debit card. PNC Purchase Payback® is a rewards program that presents great offers from favorite and suggested retailers. If you opt out of it, you can still earn PNC points. Online & Mobile Banking PNC Bank allows customers to view balances, download digital images of paid checks, pay bills, create payroll, or transfer funds online. You can download PNC Bank’s mobile banking app from the App Store and Google Play. Reviews for the PNC Bank mobile app are favorable on both the Apple App Store and Google Play Store. The app gained a 4.2-star rating out of 5 on Google Play with more than 200,000 ratings. On the Apple Store, it has 4.8 stars out of 5, with more than 1.2 million ratings. Positive user feedback highlights the app’s reliability and convenient features. However, users mentioned issues with failed biometric logins. PNC Remote Deposit Business owners can skip bank trips by depositing checks through a desktop scanner or compatible mobile device. The bank provides a single-feed scanner, but monthly fees may apply. You must enroll in PNC Online Banking to use this service. Analysis Business Checking This checking solution suits businesses wanting multiple checking accounts and earnings credit for all balances. Linking multiple accounts helps simplify bookkeeping and cash flow management. MMDA Sweep You can gain increased returns on your idle cash balances by linking your checking account to a PNC Bank money market deposit account. Nonprofit Checking Nonprofit businesses can apply for this specialty account and maintain an average monthly collected balance of $500 to waive the monthly fee. You can also take advantage of the ® program and extend financial wellness education to your employees. This is among the reasons PNC made it to our list of best banks for nonprofits. Business Interest Checking PNC Bank offers Business Interest Checking, which yields a variable interest rate. With this account, your monthly fee can be waived when you maintain an average monthly collected balance of $5,000. Contact the bank for current interest rate, APY, and non-promotional balance tier information. Interest on Lawyers Trust Accounts This checking solution is restricted to attorneys and law firms that maintain escrow accounts for multiple clients. An interest on lawyers trust account (IOLTA) pools the funds into a single, interest-bearing account. No minimum balance nor monthly fee is required. Business Services PNC Merchant Services®: Small business owners can benefit from ecommerce and in-person solutions. The bank’s ecommerce flat rate pricing per transaction is 2.9% plus 20 cents. For in-person solutions, various Clover devices are available at different price packages. You need a PNC Merchant services account to access these payment processing solutions. PINACLE® Express: PNC Bank provides access to more online and mobile features and services. You can add user access and process payments using PINACLE Payments, which offers wire, automated clearing house (ACH), Real Time Payments (RTP), and Bill Payments in one integrated solution. You can also use several of PNC Bank’s online treasury management services, such as Lockbox, Remote Safe, Liquidity Management, and Fraud Protection Services. Cash Flow Insight®: Business owners can monitor and plan their cash flow, send invoices, and schedule online payments. Cash Flow Insight tools (Spend Analysis, Timeline, Trend, Cash In, Cash Out) help you track business spending and income and provide insights for greater efficiency and control in your business operations. Other Banking Products Business Credit Cards: PNC Bank offers five different credit card options. You can choose cash rewards, points, travel rewards, or lower rates when you open PNC business credit cards. The PNC Cash Rewards® Visa Signature Business Credit Card offers 1.5% cash back on all purchases and a $200 sign-up bonus if you spend $3,000 within the first three months. Business Lending: PNC Bank offers SBA loans, term loans, and small business lines of credit, vehicle finance loans, and commercial real estate loans. PNC Bank Business Checking Pros & Cons PNC Bank is a good choice if you’re looking for a bank that provides flexible options given its variety of business checking accounts. As a Business Checking account holder, you can save more from the two reimbursements given back when using a non-PNC Bank ATM. For Business Checking Plus or Treasury Enterprise Plan account holders, no ATM charges are collected. The bank also offers business loans, credit cards, and a myriad of business payment solutions through its PNC Merchant Services® to support your business operations. However, it requires a $100 minimum deposit to open a new account and charges monthly fees. Though the fees can be waived, you need to maintain certain account balances. Another downside is the bank’s domestic and international outgoing wire fees, which are higher compared to other banks. Alternatives to PNC Bank Business Checking If you want an interest-drawing basic account, access to nationwide branches, and free or lower fees for wire transfers, check out these alternatives: offers APY for qualified deposits and is optimal for business owners looking for a free interest-earning checking account. has branches well-distributed around 48 states and is ideal for businesses seeking an institution with a strong branch presence. offers free incoming domestic wires and five free outgoing domestic wires monthly and is best for businesses wanting free or lower wire fees. Check out more providers in our list of the best small business checking accounts. Bottom Line presents business owners with multiple checking account options and outstanding merchant services. The basic Business Checking is geared toward businesses with lower transaction volumes, but the free transaction limits are still higher than other banks offer. The next tier, Business Checking Plus, gives out even higher free transaction limits. For those with multiple checking accounts who need more financial tools, the Treasury Enterprise Plan is highly suitable. PNC also offers account-opening bonuses, making it a great choice for small businesses.
July 27, 2022
Prime Alliance Bank Business Savings Review
Prime Alliance Bank’s business savings account is an excellent banking option for companies wanting to grow their excess funds at competitive rates. It comes with a tiered annual percentage yield (APY) system, which offers an APY of 1.20% for balances below $99,999.99, 1.40% for balances from $100,000 to $199,999.99, and 1.55% for balances worth $200,000 and above. Prime Alliance Bank has no monthly fees or minimum balance requirements. How Prime Alliance Bank Stacks Up With Its Competitors See fullscreen table × *Third-party operator fees may apply; First Internet Bank reimburses up to $10 of third-party machine operator ATM fees monthly When Prime Alliance Bank Is a Good Fit You want to earn competitive interest: Prime Alliance Bank has one of the best business savings accounts for those seeking tiered APY options. Its lowest APY is 1.20%, allowing businesses to grow their funds when they maintain a balance of $1 to $99,999.99. Its highest APY of 1.55% can be accessed by maintaining a balance of $200,000. You can conduct your banking activities online: Prime Alliance Bank relies on digital banking. It has only one branch in Woods Cross, Utah. When Prime Alliance Bank Is Not a Good Fit You rely on in-person banking: Prime Alliance Bank has only one brick-and-mortar bank branch, located in Woods Cross, Utah. , which has 755 bank branches across the country, would be a better fit for fans of in-person banking. You regularly make more than six transactions per month: Prime Alliance Bank’s fee for exceeding the six-withdrawal limit monthly is particularly steep at $25. Given the strict transaction limits that savings accounts impose, checking accounts are better options for businesses needing to move their money around frequently. is a good option for businesses wanting to grow their checking balances since qualified accounts earn an APY of 2.0%. If your small business meets one or more of these scenarios, check out our guide to the best small business banks for additional recommendations. Prime Alliance Bank Business Savings Overview Prime Alliance Bank Business Savings Requirements Applicants must email Prime Alliance Bank to open a business bank account. Then, they’ll be asked to provide the following information: Full name Date of birth Social Security number Current address Mother’s maiden name Birth city Phone number They must also prepare the following documents: Articles of incorporation Certificate of beneficial owners Risk assessment Two forms of ID for each person on the account If an applicant’s current address is different from what’s on their ID, Prime Alliance Bank will require proof of address. Prime Alliance Bank Business Savings Features Prime Alliance Bank’s standout features include its tiered APY system and digital banking. Tiered APY Prime Alliance Bank’s savings account rewards higher balances with higher interest rates. The rates are as follows: 1.20% for balances of $99,999.99 and below 1.40% for balances of $100,000 to $199,999.99 1.55% for balances of $200,000 and above Rates are variable and subject to change without prior notice. Interest compounds daily and is paid quarterly. Digital Banking Customers can access their Prime Alliance Bank business savings accounts through the bank’s website, iOS app, and Android app. The app allows customers to view balances, make mobile deposits, transfer funds, pay bills and loans, manage contact information, and contact customer services. Other Prime Alliance Bank Business Products Money Market Accounts Similar to Prime Alliance Bank’s business savings accounts, its money market accounts offer tiered APY, ranging from 1.20% for balances worth $99,999.99 and below to 1.55% for balances of $200,000 and above. Money market accounts compound interest daily and pay monthly. CDs Prime Alliance Bank offers competitive APY rates through its business CDs. The shortest available term is six months, which earns interest at a rate of 1.20%, whereas the longest available term is 60 months, which earns interest at a rate of 2.75%. These business CDs have a minimum deposit requirement of $500 and pay interest quarterly. Checking Accounts Prime Alliance Bank offers two checking accounts, the interest-earning Business Interest Checking account and the no-frills Keep It Simple Business Checking account. Business Interest Checking: Like Prime Alliance Bank’s business savings products, this has a tiered APY system. Balances up to $99,999.99 earn interest at an APY rate of 0.05%, balances from $100,000–$199,999.99 earn 0.10%, and balances of $200,000 and over earn at a rate of 0.20%. Keep It Simple Business Checking: Although it doesn’t earn interest, it comes with several useful features, such as reduced wire transfer fees and free wallet-style checks. Both accounts provide a free EMV chip Visa debit card. There are no minimum balance requirements, monthly maintenance fees, and transaction limits. Commercial Loans Prime Alliance Bank offers real estate loans, Small Business Administration (SBA) loans, commercial lines of credit, and equipment lease financing. Real estate loans: Businesses needing to purchase property or construct or acquire commercial buildings can secure loans of up to $10 million. Loans must be worth less than 80% of the target property’s value, and terms last five to 15 years. SBA loans: Prime Alliance Bank helps businesses secure SBA loans, including land loans, real estate term loans, equipment financing loans, and operating capital. The maximum amount a business can borrow is $10 million, and the terms last 15 to 25 years. Commercial line of credit: Businesses can borrow lines of credit worth up to $10 million. Revolving credit lines and one-time draw-down lines of credit are both available. Terms can last one to three years. Equipment lease financing: Prime Alliance Bank offers tax leases, equipment leases, lease lines, and finance lines. Terms can last two to four years. Prime Alliance Bank Business Savings Pros & Cons Prime Alliance Bank’s savings account offers some of the highest APY rates in the market. Because it lacks monthly fees and minimum balance requirements, it’s affordable to maintain. However, it does charge a steep $25 fee for transactions after the six-monthly limit and a $1.50 fee for non-MoneyPass ATM withdrawals. Prime Alliance Bank also only has one physical branch location, which makes it unsuitable for those needing in-person banking. Alternatives to Prime Alliance Bank Business Savings For some businesses, Prime Alliance Bank’s lack of physical branches, strict transaction limits, and costly withdrawal fees may be a hindrance. Here are three alternative options to consider: : Best for businesses wanting to earn competitive interest rates on their checking accounts. Prime Alliance Bank’s most competitive interest rates of 1.20%–1.55% are limited to savings accounts. Bluevine offers qualified checking accounts an APY of 2.0% : Best for businesses wanting access to brick-and-mortar bank branches. Capital One has around 755, whereas Prime Alliance Bank only has one located in Utah. : Best for businesses conducting more than six transactions per month. Prime Alliance Bank limits accounts to six withdrawals per month and charges $25 for every withdrawal after. Axos Bank gives businesses 20 fee-free transactions per month, which includes debits, credits, and deposits. Bottom Line is an excellent business savings choice for businesses looking for tiered APY systems. The institution offers a competitive interest rate of 1.20% even at its lowest tier, which only increases as balances grow. Given its extensive list of business services, which include checking, money market accounts, CDs, and lending products, it’s a great business banking option all around.
July 25, 2022
Live Oak Bank Business Savings Review
With one of the highest interest yields in the market, Live Oak Bank’s business savings account is an excellent choice for your business. The internet-only bank earns an annual percentage yield (APY) of 1.40% with a 1-cent minimum balance to earn interest, no monthly maintenance fees, and no earning cap. Live Oak Bank also offers other services, such as high-yield business certificates of deposit (CDs), business checking, and small business loans. How Live Oak Bank Stacks Up With Its Competitors See fullscreen table × When Live Oak Bank Is a Good Fit Your business needs are served by a digital bank: Live Oak Bank has no brick-and-mortar bank branches. Businesses must conduct their banking operations on Live Oak Bank’s website or mobile application (available on both iOS and Android). You want to earn competitive interest on balances: Its APY of 1.40% is 17x larger than the national average. Interest compounds daily. Because of its competitive APY and minimal fees, it’s our #1 choice among the best savings accounts for small businesses. You want access to other banking products: The bank offers business checking, CDs, and small business loans, including Small Business Administration (SBA), United States Department of Agriculture (USDA), and commercial loans. Live Oak Bank is our top-recommended SBA lender. When Live Oak Bank Is Not a Good Fit You work with cash regularly: Currently, Live Oak Bank doesn’t accept cash deposits. A better alternative is , which lets businesses deposit $5,000 worth of cash fee-free per month. You send wire transfers regularly: Live Oak Bank charges a $19 fee for outgoing wire transfers. Businesses wanting to send and receive wire transfers fee-free can consider the fintech solution . You make more than six transactions per month regularly: Like many savings accounts, Live Oak Bank’s business savings accounts limit transactions to six per statement cycle. If you make more than six transactions monthly and want the advantage of earning interest on account balances, it may be better to opt for an interest-bearing checking account. , which lets qualified accounts earn 2.0% APY on checking balances, is a good option. Check out our guide to the best small business savings accounts for additional recommendations if your small business meets one or more of these scenarios. Live Oak Bank Business Savings Overview Live Oak Bank Business Savings Requirements When you apply for a business savings account, Live Oak Bank will ask for the following personal information: Full name Current address Social Security number Date of birth Citizenship status Mobile number Email address Employment status It will also ask you whether you’re a current or past Foreign Senior Political Figure or if you’re an immediate family member or close associate of a current or past Foreign Senior Political Figure. Then, it will request relevant business and banking information. For a list of documents banks often require during the application process, see our guide to opening a business bank account. Live Oak Bank Business Savings Features Live Oak Bank’s features are straightforward: it offers competitive interest rates and mobile banking. The bank also charges a dormant account fee to discourage inactivity. Competitive Interest Rates Live Oak Bank’s business savings account earns interest at a rate of 1.40%. However, the rate is variable and subject to change without notice. Interest compounds daily, and accounts must hold at least 1 cent to qualify. Mobile Banking Live Oak Bank customers can access their savings accounts through the mobile app, available on iOS and Android. Through the mobile app, account holders can check balances, search transaction history, transfer funds, make check deposits, and view and download account statements and tax documents. Other Live Oak Bank Business Products Live Oak Bank also offers high-yield CDs, small business checking, and small business loans. High-yield CDs Businesses can access Live Oak Bank’s most competitive interest rates through its CD offerings. The lowest rate a business can earn is 1.50% for a six-month term. The highest rate is 3.00% for a five-year term. Although Live Oak Bank charges no monthly fees, the minimum balance requirement for CDs is $2,500. The maximum balance a CD can hold is $250,000. Small Business Checking Live Oak Bank also offers a small business checking account called Tidal Small Business Checking. Like Live Oak Bank’s savings account, Tidal Small Business Checking charges no monthly maintenance fees and imposes no minimum balance requirements. Tidal Small Business Checking users can make an unlimited number of transactions fee-free. However, the account doesn’t earn interest. Small Business Loans Live Oak Bank offers SBA loans, USDA loans, and commercial loans. All small business loans start at $150,000. After closing each loan, Live Oak Bank connects businesses with one of their business analysts, who will check in each quarter to assess loan progress and provide insights and guidance. Live Oak Bank Business Savings Pros & Cons Live Oak Bank has the typical profile of an internet-only bank: at the cost of access to physical branch banking and cash deposit functionality, businesses get cheaper fees, lower minimum balance requirements, and better interest rates. However, fees for outgoing wire transfers remain high at $19 per transaction. Alternatives To Live Oak Bank Business Savings Though Live Oak Bank can cover basic savings needs, certain businesses may prefer having access to physical branches, cheaper fees, and higher transaction limits. Here are three alternative options to consider: : Best for businesses that need in-person banking and cash deposit functionality. Live Oak Bank does not accept cash deposits and has no physical bank branches. Capital One has more than 750 branches across the country and allows fee-free deposits up to $5,000. : Best for businesses that rely on wire transfers. Live Oak Bank charges $19 for outgoing wire transfers. Under Mercury, incoming and outgoing wire transfers are both free. : Best for businesses that want to earn competitive interest on their checking accounts rather than savings accounts. Live Oak Bank limits fee-free transactions to six per statement period. Placing funds in an interest-earning checking account like Bluevine, which is on our list of best small business checking accounts due to its 2.0% APY rate, lets businesses earn interest without limiting access to their money. Bottom Line Through Live Oak Bank, businesses grow their excess funds and gain access to a good selection of banking services, such as business CDs, business checking, and small business loans. Cash-reliant businesses, however, might have to look elsewhere for in-person banking and support for cash deposits.