An online business checking account is best for businesses that don’t need to make cash deposits at a physical branch location. The best online business checking accounts charge no monthly maintenance fees and pay better interest rates than many business savings accounts. Some accounts even offer an introductory APY up to 1.21%.
Top 6 Online Business Checking Accounts October 2019
Bank | Best for |
|---|---|
(Best Overall) Earning a substantial introductory APY | |
Fee-free checking that seamlessly connects with payment services like Square | |
Another great fee-free account | |
Free remote deposits and access to other business accounts | |
Earning a higher ongoing APY | |
Opening multiple online accounts |
How the Best Online Business Checking Accounts Changed
On Sept. 18, the Federal Reserve cut short-term interest rates for the second time this year. Additionally, in August 2019, Radius announced its partnership with NorthOne, an API mobile-first banking platform. This article was originally published in May 2019.
Federal Reserve Cuts Short-term Interest Rates
On Sept. 18, 2019, the Federal Reserve cut its benchmark interest rate by another quarter of a percentage point, which is the second rate drop this year. We monitor Federal Reserve rate changes because they impact the cost of money for banks. When the prime rate changes, banks may change their account fees or the rate they pay on interest-bearing checking accounts. This did not have an impact on the accounts on our list.
Radius Bank Partners with Competitor NorthOne
On Aug. 27, 2019, Radius Bank announced it was teaming up with NorthOne. NorthOne is a mobile banking platform that focuses on financial management solutions for freelancers and small business owners. They joined with Radius in order to take advantage of Radius’ FDIC-insured business checking accounts and make them available on its platform.
NorthOne provides business checking accounts starting at $10 per month for up to 20 transactions. NorthOne also has a checking account with unlimited transactions for $50 per month. Although NorthOne offers online business checking, the fee structure for these mobile-based accounts were too costly to consider them one of our best online business checking accounts.
Azlo Introduces Partnership with Kabbage
Recently, Azlo and Kabbage, a small business lending platform, announced the launch of Mission Street Capital — a new program that provides small businesses that bank with Azlo access to loans through Kabbage of up to $250,000. Kabbage provides hassle-free lending, as there are no fees to apply or maintain access to funding. Additionally, small businesses are not required to withdraw funds once qualified. This change did not impact our rankings.
Novo Adds Integrations With Xero
Novo recently announced its partnership with Xero, a global cloud accounting provider for small businesses. With this integration, Novo became Xero’s first U.S. digital banking platform partner. Novo users will be able to sync their bank accounts with Xero, which will automatically transfer transactions to Xero every hour. This change did not impact our rankings.
First Internet Bank Offers New Business Checking Account
First Internet Bank recently replaced its Small Business Checking account with Amplify Checking for Small and Mid-sized Business. The bank added an ongoing APY offer, reduced the minimum initial deposit requirement, and removed the monthly account fee. The Amplify Checking account pays 0.70% APY on balances of at least $10,000, requires an initial deposit of $100, and has no monthly account fee.
Before Amplify Checking, First Internet Bank offered a Small Business Checking account that didn’t pay interest. Additionally, it had a minimum initial deposit requirement of $500 and a monthly account fee of $25. The bank would waive the monthly account fee if you maintained a minimum balance of $10,000. This change did not have an impact on our rankings.
Opening Conventional vs Online Business Checking Accounts
Business owners opening a business checking account can choose between a conventional business checking account or an online business account. A conventional checking account is one that is offered by a bank with brick-and-mortar branches. Those accounts often carry more fees, but the banks that offer them also have a wide variety of products and services. Online business checking accounts are designed for businesses that don’t handle cash.
Most online business checking accounts are free business bank accounts, which have no monthly account fees or make it easy to avoid account fees by meeting minimum requirements. For example, you can avoid a monthly maintenance fee if you maintain a monthly minimum balance set by the bank. However, if you need access to a physical branch or to make frequent cash deposits, this type of account may not be the best business checking account for you.
How We Evaluated Online Business Checking Accounts
Online business checking accounts are best for business owners who do not need to visit a physical branch for cash deposits. These accounts focus on offering business banking directly from your computer, tablet, or mobile device. The best online checking accounts carry minimal fees, offer an excellent online banking experience, and have ATM accessibility.
In our evaluation of the best online checking accounts, we considered:
- Fees: Monthly account fees, transaction fees, and ATM fees. The best online business checking accounts are fee-free.
- ATM accessibility: Whether or not the online bank has ATM partners in the area. The best online business checking accounts offer free ATM usage.
- Other benefits: Some banks offer remote deposit capture technology where you can deposit checks from your phone. Additionally, some pay interest on your deposits and offer other business products, such as business savings and investment accounts.
- Customer service: Whether you can contact customer service through a website, phone, or live chat. Some accounts on our list offer all of these customer service options.
When you choose an online business bank account, it’s important to consider fees, the online banking experience, and any additional features or services the bank offers. None of the accounts on our list have a physical branch location, and you must bank remotely.
We recommend TIAA Bank as the best online business checking account. It’s an interest-bearing account that pays 1.21% annual percentage yield (APY) for the first year on deposits up to $250,000. This is the only account on our list that offers an introductory APY.
TIAA Bank: Overall Best Online Business Checking Account
TIAA Bank, previously known as EverBank, is the overall best online business checking account because it offers a substantial introductory APY. This online business account has an introductory offer of 1.21% APY for the first 12 months on deposits up to $250,000. TIAA Bank charges few fees and offers additional financial products, including business savings accounts and investment services.
TIAA Bank charges no monthly account fee and provides ATM fee reimbursements if you maintain a minimum balance of $5,000. You’ll receive your first 200 transactions for free every month.
A business checking account with TIAA Bank has the following costs:
- Monthly fee: None
- ATM fee: None, provides reimbursements if you maintain a balance of at least $5,000
- Transaction fee: 25 cents each after the first 200 transactions in a month
- Outgoing wire fee (domestic): $25
- Outgoing wire fee (foreign): $35
TIAA Bank charges per outgoing domestic and foreign wire transfer. In comparison, other online-only accounts on our list don’t offer outgoing domestic and foreign wires, including Azlo.
TIAA Bank Terms
To open a business checking account online with TIAA Bank, you’ll need to make a minimum initial deposit of $1,500. This is the only online business account on our list that offers an introductory APY, which is 1.21%.
TIAA Bank has the following terms:
- Minimum initial deposit: $1,500
- Minimum account balance: None
- Introductory APY: 1.21% for the first 12 months on deposits up to $250,000, 0.61% to 1.21% for balances of $250,000 or more
- Ongoing APY: 0.20% to 0.61%, depending on your balance
TIAA Bank, Radius Bank, and First Internet Bank are the only accounts on our list that pay interest on your account balance. For the first year, TIAA bank pays 1.21% APY on deposits up to $250,000 and 0.20% to 0.61% thereafter. Radius Bank pays 0.75% APY on balances of at least $5,000 and First Internet Bank pays 0.70% APY on balances of at least $10,000.
Bank Network for TIAA Bank
TIAA Bank doesn’t offer any in-network ATMs for clients to use. Instead, TIAA Bank will reimburse account holders for ATM fees as long as they maintain an average daily account balance of at least $5,000. If you won’t have a daily balance of $5,000 and need access to free ATMs, Azlo provides 55,000 fee-free ATMs.
TIAA Bank Customer Service
TIAA Bank offers customer service online and over the phone, similar to most online-only banks. However, this bank does not offer a live chat option. Some users complain that TIAA Bank does not offer excellent customer service.
TIAA Bank Other Benefits
In addition to the introductory APY, TIAA Bank also offers money market accounts, CDs, investment services online, and remote deposit capture. Opening different types of business bank accounts with the same bank allows you to keep your business’s funds in one place. The only other banks on our list that offer similar additional business accounts are Axos Bank and First Internet Bank.
What TIAA Bank Is Missing
TIAA Bank doesn’t offer in-network ATMs for clients to use to access their money. This can be a roadblock for small business owners who want to make cash withdrawals. However, TIAA Bank will reimburse all ATM fees if you maintain an average minimum daily account balance of at least $5,000. If you want access to in-network ATMs, Azlo offers 55,000 ATMs in its network.
TIAA Bank Reviews
We considered both user reviews and our own editorial review when evaluating this account. TIAA Bank reviews are mostly mixed. TIAA Bank is the only bank on our list that provides an introductory APY offer. However, it lacks excellent customer service.
User Reviews
Online TIAA Bank user reviews are mixed. Most clients enjoy the introductory APY and ongoing APY this small business checking account offers. However, some users complain about TIAA Bank’s customer service since it bought out EverBank. Users say they sometimes don’t hear back on their customer service requests.
Editorial Reviews
We rate online business checking accounts based on their fees, terms, and benefits. TIAA Bank is an excellent choice for anyone looking to earn interest on their business checking account deposits. It’s one of the few free business checking accounts that offer an introductory and ongoing APY.
How to Open a TIAA Bank Online Business Checking Account
You can open a TIAA Bank business checking account through its website. All the required forms can also be completed online. Once your account is open, you can begin earning 1.21% APY on deposits up to $250,000.
Azlo: Best for Connecting Easily With Payment Services
Azlo is best for business owners who want a completely free online business account that seamlessly connects with payment services like Square. Clients can access their money without a fee through 55,000 BBVA Compass or Allpoint ATMs. Azlo also offers Stripe, Square, and PayPal integrations and loans up to $250,000 through Kabbage. Although BBVA Compass owns Azlo, you can’t use BBVA Compass branches to conduct your banking business.
Azlo Fees
Azlo is a completely fee-free online business account, which is similar to Novo. Additionally, it offers free access to all BBVA and Allpoint ATMs, which sets it apart from the rest of the accounts on our list.
An account with Azlo has the following costs:
- Monthly fee: None
- ATM fee: None at BBVA Compass or Allpoint ATMs
- Incoming wire fee: None
- Stop payment fee: None
Azlo‘s business checking account fee-free structure is better than most other accounts on our list. Additionally, it’s the only account on our list that provides access to in-network ATMs for clients. Account holders can avoid an ATM fee as long as they use a BBVA Compass or Allpoint ATM.
Azlo Bank Terms
Azlo does not require a minimum initial deposit or a minimum account balance. You’ll also receive a free business debit card that you can use for daily transactions and at ATMs.
Azlo currently has the following terms:
- Minimum initial deposit: None
- Minimum account balance: None
- Free business debit card
Compare these terms to TIAA Bank, which requires a minimum deposit of $1,500 to open an account. However, we rank TIAA Bank above Azlo because it offers an introductory APY.
Azlo Network
Azlo is one of the few online banks on our list that offers clients access to in-network ATMs. Clients can access their money through one of 55,000 ATMs without an ATM fee. In comparison, TIAA bank offers no ATMs but reimburses account holders for all ATM fees if they maintain a daily balance of $5,000.
Azlo Customer Service
Being an online-only bank, customers can only contact Azlo customer service through its website or over the phone. Typically, account holders can manage account administration online including account setup and most transactions.
Azlo Other Benefits
In addition to 55,000 ATMs, Azlo offers mobile deposits, free mobile banking, and online bill pay. Plus, Azlo also provides some of the best account integrations, which include Stripe, Square, and PayPal. Azlo also partners with Kabbage, a small business lending platform that offers short-term loans. Small business owners who bank with Azlo can access loans up to $250,000 through Kabbage. These integrations help business owners streamline their cash flow process.
What Azlo Is Missing
Azlo, unlike a few other accounts on our list, doesn’t offer any additional business bank accounts. This means you’ll need to keep your business savings elsewhere. Plus, because this is an online-only bank, you won’t be able to visit a physical branch location like other small business checking accounts. If you’re looking for a bank that offers other business financial products, consider TIAA Bank.
Azlo Reviews
We considered both user reviews and our own editorial review when evaluating this account. Azlo reviews are mostly positive. It provides a completely fee-free account that small business owners can use to take advantage of several different integrations.
User Reviews
Azlo online user reviews show that small business owners enjoy the fee-free account structure and the integrations it offers. However, some users complain that Azlo’s customer service is hit or miss. Some customers say that customer service doesn’t get back to them in a timely manner.
Editorial Reviews
We rate online business checking accounts based on their fees, terms, and benefits. Alzo is an online bank that is growing quickly in the digital banking space. Its fee-free structure is nearly unbeatable and it offers integrations with PayPal, Square, and Kabbage. Azlo aims to help small businesses and entrepreneurs start, scale, and grow their business.
How to Open an Azlo Online Business Checking Account
To open an Azlo business checking account, visit the bank’s website. You can learn more about its business checking account and other services. You can complete the entire application process online.
Novo: Another Great Fee-free Account
Novo is best for business owners who want a fee-free account that doesn’t require a minimum balance or a minimum initial deposit. Novo is a new bank that has partnered with Federal Deposit Insurance Corporation-insured Middlesex Federal Savings. Novo also allows you to send checks directly through its mobile app, similar to some other accounts on our list.
Novo Fees
Novo provides a completely free business checking account similar to Azlo. There is no monthly account fee, transaction fee, or ACH fee.
An account with Novo has the following costs:
- Monthly fee: None
- ATM fee: None, but doesn’t provide reimbursements
- Transaction fee: None
- Cash deposit fee: None; cash is deposited through U.S. Postal Service (USPS) money orders (USPS charges up to $1.70 per money order of up to $1,000)
- ACH fee: None
Novo differs from other online business checking accounts on our list because it allows for cash deposits through USPS money orders. Most other accounts don’t allow for cash deposits. Typically, you would need to use a brick-and-mortar business checking account to make cash deposits. However, we confirmed with Novo that the process of depositing cash is not user-friendly.
Novo Terms
Novo makes it easy to open an account, as there is no minimum balance or minimum initial deposit requirement. This is common when compared to most online business checking accounts on our list.
Business checking accounts at Novo have the following terms:
- Minimum balance: None
- Minimum initial deposit: None
- Free business debit card
Like most other online business checking accounts on our list, Novo does not require a daily average minimum balance or minimum initial deposit to open an account. Additionally, you’ll receive a free business debit card to use for transactions and ATMs. In comparison, Axos Bank requires a minimum initial deposit of $1,000.
Novo Bank Network
Although Novo doesn’t offer any in-network ATMs, clients can use any ATM worldwide. However, fees may apply and Novo doesn’t offer ATM fee reimbursements. If you’re looking for a bank that offers ATM fee reimbursements, a good option would be TIAA Bank. It reimburses all ATM fees if you maintain a minimum daily account balance of $5,000.
Novo Customer Service
Much like the other banks on our list, Novo offers customer service through its website, mobile app, or by calling the customer service phone number. Novo also utilizes its partner bank, Middlesex Federal, for assistance in regard to critical account issues when necessary.
Novo Other Benefits
In addition to offering a fee-free business checking account, Novo integrates with point-of-sale (POS) tools like Google Pay, and Apple Pay. Additionally, it provides integrations with Plaid for connecting external accounts, and with Zapier for real-time account notifications to Slack, email, and your phone.
Novo also integrates with Xero, which is a cloud-based accounting software platform for small and medium-sized businesses. This integration allows Novo users to automatically sync their transactions with Xero every hour. These integrations help Novo to rank higher on our list than Axos Bank, which doesn’t offer any integrations for account users.
What Novo Is Missing
Novo is one of the few banks on our list that doesn’t provide ATM fee reimbursements. If you need to make daily transactions, this can quickly add up. Additionally, we confirmed with Novo that its cash deposit process isn’t easy. Although it offers cash deposits, unlike most other online banks, Novo does not recommend it as a standout feature.
Novo Reviews
We considered both user reviews and our own editorial review when evaluating this account. Novo offers a fee-free banking platform similar to Azlo, however, it doesn’t provide ATM access or ATM reimbursements.
User Reviews
We could not find any online user reviews for Novo’s business checking account.
Editorial Reviews
We rate online business checking accounts based on their fees, terms, and benefits. Novo is a solid option for business owners who want to open an account with a new bank. Plus, it’s best for businesses that don’t need to access ATMs for cash withdrawals, as it doesn’t offer an ATM network.
How to Open a Novo Online Business Checking Account
You can open a free business checking account with Novo directly through its website.
Axos Bank: Best for Free Remote Deposit and Access to Other Accounts
Axos Bank, formerly known as Bank of Internet USA, is best for business owners who want 60 free remote deposits each month. Plus, Axos Bank offers several other business accounts, including business savings accounts, money market accounts, and CDs. There is no monthly fee or minimum daily balance requirement. However, there is a minimum initial deposit of $1,000 to open an account.
Axos Bank Fees
Much like the rest of the accounts on our list, Axos Bank doesn’t charge a monthly account fee. Plus, your first 200 transactions each month are free then they will cost 30 cents each thereafter.
An Axos Bank Basic Business Checking account has the following costs:
- Monthly fee: None
- ATM fee: None; unlimited domestic ATM fee reimbursements
- Transaction fee: 30 cents each after 200 transactions in a month
- Outgoing wire transfer fee (domestic): $7 if initiated online
- Outgoing wire transfer fee (international): $50
Although Axos Bank doesn’t offer branded ATMs, it offers unlimited domestic ATM fee reimbursements. In comparison, TIAA Bank only offers ATM reimbursements if you maintain a minimum daily balance of at least $5,000.
Axos Bank Terms
Axos Bank is one of four checking accounts on our list that require a minimum initial deposit to open an account. To open an account, you must make an initial deposit of $1,000. However, the bank has no minimum balance requirement after the account is open.
Axos Bank has the following terms:
- Minimum balance: None
- Minimum initial deposit: $1,000
Other accounts that require a deposit are TIAA Bank ($1,500), Radius Bank ($100), and First Internet Bank ($100). If you want to open a free account without an initial deposit, a good option would be Azlo or Novo—both are similar, but offer different integrations.
Bank Network for Axos Bank
Like most online-only banks, Axos Bank has no bank network. In addition to having no physical branches, the bank also doesn’t have any in-network ATMs. Instead, Axos Bank will reimburse all domestic ATM fees. There are other banks on our list that offer in-network ATMs. For example, Azlo provides free ATM usage at 55,000 ATMs nationwide.
Axos Bank Customer Service
As an online-only checking account provider, direct customer service is typically non-existent. Instead, account holders should know they will need to handle most of their banking needs themselves through the bank’s website. If necessary, you can reach customer service through the bank’s call system.
If you want access to in-person customer service, a business checking account through Chase Bank would be a better option. Chase offers physical branch locations and an online banking experience.
Axos Bank Other Benefits
With Axos Bank’s free business checking account, you will get your first 50 checks for free and up to 60 remote deposits per month. Additionally, you’ll have free online banking and free access to online bill pay. Axos Bank also offers other business accounts, including savings, money market, and CDs.
What Axos Bank Is Missing
Axos Bank only offers account holders up to 200 free transactions per month and charges 30 cents per item thereafter. There are two other accounts on our list that offer unlimited monthly transactions, including Radius Bank and First Internet Bank. However, we believe Radius Bank is the better option to choose because its minimum balance requirement to earn the ongoing APY is $5,000 less than First Internet Bank’s requirement.
Axos Bank Reviews
We considered both user reviews and our own editorial review when evaluating this account. Axos Bank is an excellent online bank for business owners that want to have access to other business accounts such as savings, money market, or CD accounts.
User Reviews
Most online Axos Bank user reviews suggest that account holders enjoy the no monthly account fees and unlimited domestic ATM fee reimbursements. However, there are several complaints about Axos Bank’s poor customer service.
Editorial Reviews
We rate online business checking accounts based on their fees, terms, and benefits. We believe Axos Bank provides a decent online-only business checking account. Unlike other banks on our list, Axos Bank offers several other strong business bank accounts. For example, we rank Axos Bank’s business savings account as one of the best business savings accounts available.
How to Open an Axos Bank Online Business Checking Account
You can open an online business checking account with Axos Bank through its website. If you need help with your application, you can contact a customer support specialist. Once your application is approved, you can start banking immediately.
Radius Bank: Best for Earning A Higher Ongoing APY
Radius Bank is best for businesses that want to earn 0.75% interest on balances of $5,000 or more. You’ll receive free ATMs worldwide, a free business debit card, free bill pay, and unlimited transactions. This business checking account carries a $10 monthly maintenance fee, which the bank waives if you maintain a balance of at least $5,000. There’s an initial deposit requirement of $100 to open an account.
Radius Bank Fees
Radius Bank is the only bank on our list that charges a monthly fee if you don’t maintain the required minimum daily balance. It also offers unlimited automatic ATM fee reimbursements.
A Radius Bank Tailored Checking account has the following costs:
- Monthly fee: $10, waived if you maintain a minimum balance of $5,000
- ATM fee: None; unlimited automatic ATM fee reimbursements
- Transaction fee: None
- Incoming wire fee: None
There are several other free business checking accounts on our list to consider if you won’t be able to maintain a minimum balance of $5,000. If you want to open an account that is fee-free, TIAA Bank is the best option.
Radius Bank Terms
To open a business bank account online with Radius Bank, you’ll need to make a minimum initial deposit of $100. There is no required minimum balance to maintain your account unless you want to earn the ongoing APY of 0.75%.
Radius Bank has the following terms:
- Minimum balance: None to maintain the account; $5,000 to earn the APY
- Minimum initial deposit: $100
- Ongoing APY: 0.75% on balances of $5,000 or more
- Free business debit card
If you want to earn 0.75% interest on your deposits, you must maintain a balance of at least $5,000. In comparison, TIAA Bank offers an introductory APY of 1.21% for the first year on deposits up to $250,000 and an ongoing APY between 0.20% to 0.61% on all balances.
Radius Bank Network
Radius Bank doesn’t offer any in-network ATMs, unlike Azlo’s 55,000 ATMs. However, account holders will receive unlimited automatic ATM surcharge rebates for ATM fees other banks charge. These rebates apply to cash withdrawals from a Radius Bank checking account using the Radius Bank business debit card wherever it’s accepted.
Radius Bank Customer Service
Radius Bank is the only online bank on our list that offers customer service through a live chat. Plus, you can reach its customer service representatives by phone or email. However, you’ll be able to manage most of your banking needs through its online and mobile banking experience.
Radius Bank Other Benefits
In addition to Radius Bank’s Tailored Checking account, it also offers Small Business Administration (SBA) loans and other lending services. This is the only bank on our list that offers SBA loan transactions. However, it doesn’t offer business savings accounts, money market accounts, or CDs. If you want a bank that offers those products, a good option would be Axos Bank. That bank offers one of the best business savings accounts.
What Radius Bank Is Missing
Unlike four other banks on our list, Radius Bank does not provide a completely free account unless you maintain a minimum balance. TIAA Bank, Azlo, Novo, Axos, and First Internet Bank all provide accounts with no monthly fees. If you want a free account, we recommend TIAA Bank as the best option. It offers an introductory APY of 1.21% for one year on deposits up to $250,000.
Radius Bank Reviews
We considered both user reviews and our own editorial review when evaluating this account. Radius Bank reviews are generally mixed. Radius Bank offers an affordable interest-bearing business checking account, but some reviews suggest it has a glitchy website.
User Reviews
Online Radius Bank user reviews are mixed. Some account holders say they enjoy the fee-structure of this checking account. However, there are a handful of complaints about a glitchy application process and its customer service.
Editorial Reviews
We rate online business checking accounts based on their fees, terms, and benefits. Although we don’t believe Radius Bank offers the best account on our list, we do think it’s an option worth considering if you want to earn interest. It pays 0.75% APY on balances of $5,000 or more from the minute you open your account.
How to Open a Radius Bank Online Business Checking Account
You can open a Radius Bank Tailored Checking account online without any required documents. The process typically takes 10 minutes or less. Once your application is approved, you can start banking online immediately.
First Internet Bank: Best for Opening Multiple Online Accounts
First Internet Bank is best for business owners who also want a business savings account. The bank’s online business checking account also pays 0.70% APY on balances of at least $10,000. It takes a minimum initial deposit of $100 to open this account. Additionally, First Internet Bank’s business savings account pays up to 1.41% APY, depending on your balance. Opening two online accounts that pay interest can help you maximize your dollar.
First Internet Bank Fees
Unlike Radius Bank, First Internet Bank doesn’t require you to maintain a minimum daily balance to avoid a monthly fee. However, First Internet Bank charges more fees, including outgoing wire transfer fees.
A First Internet Bank business checking account has costs including:
- Monthly fee: None
- ATM fee: None
- Transaction Fee: None
- Outgoing wire transfer fee (domestic): $20
- Outgoing wire transfer fee (international): $50
- Stop payment fee: $30
We rank First Internet Bank low on our list because there are other accounts on our list that are completely fee-free. If you want a fee-free business checking account that pays interest, we recommend TIAA Bank.
First Internet Bank Terms
To open a business checking account online with First Internet Bank, the bank requires a minimum initial deposit of $100. Additionally, First Internet Bank doesn’t require a minimum balance to maintain your account.
First Internet Bank has the following terms:
- Minimum balance: None to maintain the account; $10,000 to earn the APY
- Minimum initial deposit: $100
- Ongoing APY: 0.70% on balances of $10,000 or more
Although there is no minimum balance to maintain an account, you must have an average daily balance of at least $10,000 to earn the ongoing APY of 0.70%. In comparison, Radius Bank pays 0.75% APY on balances of at least $5,000.
First Internet Bank Network
First Internet Bank is a branchless bank that does not offer any in-network ATMs for its customers. You can use any ATM with the business debit card the bank provides, but it will only reimburse you for ATM fees up to $10 per month. If you need to deposit checks, you can do so using iScan Deposit or remote deposit capture.
First Internet Bank Customer Service
Similar to all other accounts on our list, account holders can contact customer service by email or by calling its customer service number. You’ll be able to handle most of your business checking account needs through its online banking experience.
First Internet Bank Other Benefits
First Internet Bank offers a wide variety of other business bank accounts, such as savings, money markets, and CDs. It specifically offers an excellent business savings account, which pays up to 1.41% APY, depending on your balance. We ranked that account as the best business savings account available. Additionally, this bank offers remote deposit capture.
What First Internet Bank Is Missing
First Internet Bank is one of three banks that offer an ongoing APY. However, you must maintain a minimum balance of $10,000 to earn the APY. If you want to earn an ongoing APY on any balance, consider TIAA Bank. It pays between 0.21% to 0.60% APY, depending on your daily account balance.
First Internet Bank Reviews
We considered both user reviews and our own editorial review when evaluating this account. First Internet Bank offers a solid account for businesses with account balances of at least $10,000 because of the ongoing APY of 0.70%. However, it charges a monthly fee if you cannot maintain this balance.
User Reviews
First Internet Bank online user reviews are mixed. Customers not only enjoy its business checking account, but also its business savings account and lending services. However, some users complain about not being able to make cash deposits because it’s a branchless bank.
Editorial Reviews
We rate online business checking accounts based on their fees, terms, and benefits. We believe First Internet Bank is a good choice if you have a daily account balance of at least $10,000 and want to take advantage of its other products. First Internet Bank offers the best business savings account and its money market account ranks in our best money market account list.
How to Open a First Internet Bank Online Business Checking Account
If you’d like to open an account with First Internet Bank, you can start and finish the process online. You’ll need to be a United States resident, provide your Social Security number, your business information, and have your identification card ready.
Pros & Cons of Online Business Checking Accounts
The biggest benefit of an online business checking account is it can help you separate your business and personal finances. Plus, most online-only banks offer fee-free checking accounts and allow you to manage your account on the go. However, cash deposits are difficult and finding a free ATM may prove difficult.
Pros of an Online Business Checking Account
The pros of an online business checking account are:
- Separates your business and personal finances: Utilizing business checking accounts is an excellent way to ensure you don’t commingle your business and personal finances.
- Most banks offer fee-free checking accounts: If you open an account with an online-only bank, you can expect to pay fewer fees. Online-only banks usually have lower fees compared to traditional banks because they don’t have the overhead of keeping a physical location open.
- You can bank directly from your mobile device: Online-only banks typically offer an online banking experience and a mobile app. This makes it easy to manage your account on the go or directly from your computer.
Cons of an Online Business Checking Account
The cons of an online business checking account are:
- Cash deposits are usually difficult or non-existent: Most online-only banks don’t accept cash deposits by mail, with the exception of Novo. If your business handles a lot of cash, consider opening a business checking account that also has a physical branch location such as Chase Total Business Checking.
- Lack of in-network ATMs: Online-only banks usually don’t provide in-network ATMs for their clients. Some banks, such as Azlo, partner with specific ATM companies to provide ATM access for their customers.
- No access to in-person customer service: Online-only banks only provide customer service through their websites, mobile device apps, or customer service phone number. If you want the ability to receive in-person customer service, a business checking account with a brick-and-mortar bank would be a better option.
Online business bank accounts are designed for businesses that don’t handle cash and are looking for a fee-free account. They can help you separate your business and personal finances while giving you the opportunity to bank on the fly.
Online Business Checking Account Alternatives
If your business handles cash every day, an online-only bank is not the best checking account provider for you. Instead, consider opening a business checking account with a traditional bank that also offers an online banking experience. Each bank in the table below offers physical branch locations and an online banking experience.
Best Online Business Checking Account Alternatives
Bank | Best for |
|---|---|
A free checking account and a sign-up bonus of $200 | |
Physical branch locations and an introductory bonus of up to $450 | |
Low-cost checking with unlimited transactions | |
Making few transactions | |
Free checking for the first three months |
Bottom Line
When choosing between a conventional and online business checking account, it’s crucial to consider if you’ll need to make cash deposits. If you don’t need to make cash deposits, opening a business checking account online would be best for you. The best online business checking accounts are fee-free, offer remote deposit capture, and provide free ATM access or ATM fee rebates.
We believe TIAA Bank is the best overall online business checking account. It pays 1.21% interest for the first year on deposits up to $250,000 and between 0.20% to 0.61% thereafter. You can open a business checking account online today and begin banking immediately.
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