Capital One Bank Business Checking Review 2022
Tricia has nearly two decades of experience in commercial and federal government lending. Her expertise is highlighted throughout small business loan content on Fit Small Business.
This article is part of a larger series on Business Banking.
Capital One is a great choice for small business owners looking for a full-service bank offering unlimited transactions, free debit cards, waivable maintenance fees, and business credit cards. It has two business checking accounts: Spark Business Basic Checking and Spark Business Unlimited Checking.
The basic checking account caters to business owners who would need to deposit $5,000 or less in cash every month since cash deposit fees apply in excess of that amount. Meanwhile, the unlimited checking account is suitable for business owners who have high transaction volumes and would benefit from the unlimited fee-free cash deposit feature.
Capital One Bank
What We Like
- Waivable monthly maintenance fees
- Unlimited transactions
- Five free domestic outgoing wires monthly
What's Missing
- Limited bank branches, required to open an account in person
- No APY
- $250 minimum opening deposit
Features
- Free debit card
- Mobile banking
- Online bill pay
- Business cards
How Capital One Stacks Up With Its Competitors
Annual Percentage Yield (APY) | Cash Deposit Fee | ATM Fee | Minimum Opening Deposit | |
|---|---|---|---|---|
| None | Up to $ 5,000; $1 fee for every $1,000 thereafter for basic account | None; Nonnetwork and international ATMs: $2 | $250 |
 | None | Up to $20,000/month free, then $2.50/$1,000/statement cycle | No non-Chase ATM fees; ATM operator fees apply | None |
 | None | Up to $7,500/month free, then 30 cents/$100 /statement cycle | $2.50/transaction at non-Bank of America ATMs, plus ATM operator fees | None |
When Capital One Is a Good Fit
- You’re searching for a bank that offers fee-free unlimited transactions: Capital One, which is on our lists of the best small business checking accounts and top free business checking accounts, offers unlimited everyday transactions when you open a business checking account. It doesn’t charge fees for deposits, withdrawals, and transfers. However, its Spark Business Basic checking account is fee-free for only up to a $5,000 cash deposit.
- You’re looking for a traditional bank where you can make large cash deposits daily: Opening a Spark Business Unlimited checking account with Capital One permits you to make fee-free unlimited cash deposits.
- You’re a real estate investor who needs financing options: Apart from unlimited free monthly transactions, Capital One provides real estate financing services, real estate investment trusts (REITs), and real estate investment funds (REIFs), which is why it landed a spot in our roundup of the leading banks for real estate investors.
- Your limited liability company (LLC) requires you to travel regularly: The bank issues a Spark Miles for Business card that lets you earn travel rewards. It has a low annual fee and gives out unlimited 2x miles for all your purchases. Hence, we consider it among the best LLC credit cards.
When Capital One Is Not a Good Fit
Although Capital One has great business checking products, it may still lack what you’re seeking. You can pick an alternative to Capital One in these scenarios:
- You’re looking for an interest-earning business checking account: Even if Capital One offers unlimited transactions, it doesn’t let you earn APY. Bluevine is an excellent option that gives 2.0% APY on qualified balances and has no transaction limits at the same time.
- You prefer to open an account online: To open a business checking account with Capital One, you have to visit a branch. If you want a bank that offers an online application, then a good alternative is Grasshopper Bank.
- You want a fee-free business checking account: Capital One requires a minimum deposit of $250 and has monthly maintenance fees—although you can waive them when conditions are met. However, Axos Bank allows you to open a basic checking account with no minimum deposit requirement and no monthly fees.
Capital One Business Checking Overview
Spark Business Basic Checking | Spark Business Unlimited Checking | |
|---|---|---|
Required Opening Deposit | $250 | $250 |
Required Minimum Balance | None | None |
Transaction Limit Before Fees | Unlimited | Unlimited |
Monthly Fees | $15; waivable if conditions are met | $35; waivable if conditions are met |
Domestic Wire Transfer Fees | Incoming: $15 Outgoing: $25 | Incoming: Free Outgoing: First five free each month, $25 thereafter |
International Wire Fees | Incoming: $15 Outgoing: $40 for foreign currency; $50 for United States dollars | Incoming: $15 Outgoing: $40 for foreign currency; $50 for US dollars |
ATM Fees | Free at more than 70,000 Capital One, Allpoint, and MoneyPass ATMs nationwide | Free at more than 70,000 Capital One, Allpoint, and MoneyPass ATMs nationwide |
Cash Deposit Fees | Free up to $5,000 per month; $1 fee for every $1,000 thereafter | None |
APY | None | None |
Open an Account | ||
Spark Business Basic Checking and Spark Business Unlimited Checking | |
|---|---|
Debit Card | Free debit card |
Overdraft Protection | Free but requires enrollment |
Business Services | Capital management (Positive Pay), merchant services (Worldpay), escrow express |
Customer Service | For business accounts with access to a branch: 1-888-755-2172, Mondays to Fridays, 8 AM to 8 PM For business accounts with digital access only: 1-844-887-7275, Mondays to Fridays, 8 AM to 8 PM |
Other Products | Business savings, lending products, credit cards, personal banking |
Open an Account |
Capital One Business Checking Requirements
You can visit a local Capital One branch to open a business checking account. Talk to a banking associate about your business needs at a Capital One location.
To complete your application, you’ll be asked to provide the following:
- Personal information, including name, date of birth, Social Security number, and birthdate
- Email address and phone number
- US address and owner establishment date, not a post office box
- Legal name of business and type of business
- Business establishment date with signer’s full name
- Tax ID number (TIN), ownership structure, and number of employees
- Percent of ownership and annual gross revenue
Click here for the additional requirements according to business type.
- Corporation: Certified articles of incorporation, certificate of good standing, or certificate of incorporation/formation/registration and IRS Form SS-4/CP 575A or IRS Letter 147C
- S Corporation (S-corp): Certified articles of incorporation or certificate of good standing and IRS Form SS-4/CP575A or IRS Letter 147C
- LLC: Certified articles of incorporation, certificate of formation/registration, certificate of good standing, or signed and dated operating agreement and IRS Form SS-4/ CP575A or IRS Letter 147C
- Series LLC (SLLC): Operating Agreement for the SLLC and certified certificate of formation (managing LLC) and IRS Form SS-4/CP575A or IRS Letter 147C
- Low-profit LLC: Certified certificate of organization and IRS Form SS-4/CP575A or IRS Letter 147C
- Limited liability partnership (LLP): Signed and dated partnership agreement or certified evidence of registration with the secretary of state and IRS Form SS-4/CP575A or IRS Letter 147C
- General partnership (GP): Signed and dated partnership agreement or certified evidence of registration with the secretary of state and IRS Form SS-4/CP575A or IRS Letter 147C
- Limited partnership (LP): Certified certificate of limited partnership with the secretary of state, signed and dated partnership agreement, certified evidence of registration with the secretary of state, or certified certificate of good standing and IRS Form SS-4/CP575A or IRS Letter 147C
- Sole proprietorship: No additional business documentation is required
- Unincorporated association/club: Certified articles of organization or charter letter from national organization authorizing a local chapter on organization’s letterhead, recent meeting minutes on the organization’s letterhead, or signed and dated formal written agreement or by-laws and IRS Form SS-4/CP575A or IRS Letter 147C
- International business corporation: Certified articles of incorporation or certificate of good standing and IRS Form SS-4/ CP575A or IRS Letter 147C
- Nonprofit organization: Not-for-profit articles of incorporation (if incorporated) or recent meeting minutes on organization’s letterhead and IRS Form SS-4/CP575A or IRS Letter 147C and IRS Determination Letter 501(c)(3) or letter of tax-exempt
- Trust or estate: Documents based on entity type and certificate of trust
Prior to opening an account at a branch, check out our guide on how to open a business bank account, which details the process and includes a downloadable checklist of required documents.
Capital One Business Checking Features
Capital One’s two business checking accounts have several features that benefit business owners. Some are available to only one type of account, which will be specified below.
Online & Mobile Banking
Capital One lets you enjoy fee-free unlimited digital transactions. It even has Android and iOS mobile apps, both of which have great reviews. On Google Play, Capital One earned 4.6 out of 5 stars with more than 1.3 million ratings, whereas on App Store, it garnered 4.9 out of 5 stars with 5.6 million ratings.
Reviewers appreciate the app’s simplicity and ease of use. Others, however, left low ratings because they encountered issues during app updates.
Spark Business Basic Checking
A Spark Business Basic checking account, which has a $250 account opening deposit, provides small business owners with unlimited digital transactions, a debit card, and online bill pay. It comes with a $15 monthly fee that you can waive if you have either of the following:
- A $2,000 minimum 30- or 90-day average balance, whichever is greater.
- Any two or more active, open products that include a small business loan or line of credit, merchant services account, or a Spark business credit card.
Spark Business Unlimited Checking
A Spark Business Unlimited checking account is for small business owners with less than $10 million in annual sales revenues and cash deposit needs of less than $40,000 per month. It offers fee-free cash deposits, unlimited transactions, debit cards, and online bill pay.
A $250 account opening deposit is required to open an account. It has a $35 monthly fee that you can waive if you have either of the following:
- A $25,000 minimum 30- or 90-day average balance, whichever is greater.
- Any two or more active, open products that include a small business loan or line of credit, Spark ProDeposit, merchant services account, or a Spark business credit card.
Opening a Spark Business Unlimited checking account entitles you to two Spark Business Basic checking accounts with no monthly fees—as long as the account remains open and in good standing. If the account is closed, then the monthly service fee for the Spark Business Basic Checking accounts will be applied.
Spark ProDeposit
The Spark ProDeposit service is available only to Spark Business Unlimited Checking account holders. It’s a remote deposit service that saves you from bank trips by allowing you to deposit checks using a single feed scanner and/or mobile device. The ProDeposit monthly service fee is $50 and requires a one-year contract. A free remote deposit capture scanner is provided by Capital One.
Spark Business Cards
Capital One offers a variety of business credit cards with excellent rewards, such as unlimited cash back, no annual fees, and bonus travel miles. As a business owner, you can request free business credit cards for your employees. This will help you keep track of their business spending as you can set spending limits and review transactions. You also get an itemized report at the end of the year, helping you plan your budget and prepare for tax season.
Other Banking Products
Capital One has a full suite of banking products for small businesses:
- Business savings: You can earn a 0.20% promotional interest rate that’s guaranteed for the first 12 months with this account. The $3 monthly service fee can be waived by maintaining a minimum balance of $300.
- Loans and lines of credit: You can apply for real estate loans, lines of credit, and Small Business Administration (SBA) loans for your business. To be eligible, you need to have been in business for at least two years and own or open a business checking account.
- Credit cards: There are several to choose from, and it offers cash rewards, travel rewards, and credit building to business owners.
Capital One Business Checking Pros & Cons
| PROS | CONS |
|---|---|
| Free incoming domestic wires for Spark Business Unlimited Checking account | Must meet conditions for monthly fees to be waived |
| No cash deposit fees for Spark Business Unlimited Checking account | Fee-free up to $5,000 cash deposit per month for Spark Business Basic Checking account |
| Offers business credit cards | No welcome bonus |
If you’re looking for a bank that has brick-and-mortar branches and provides a great online and mobile banking experience, consider Capital One. As a business owner, you get access to unlimited digital transactions and business cards.
What’s more, with a Spark Business Unlimited checking account, you can avoid cash deposit fees and incoming domestic wire fees. However, for monthly fees, a waiver can be done only if you meet the required average balances. For a Spark Business Basic checking account, only up to a $5,000 cash deposit per month is fee-free. Beyond that, you’ll be charged $1 per $1,000 deposit.
Alternatives to Capital One Business Checking
Capital One has two excellent business checking accounts, but they might not be suitable for your business needs. If you want to open an account online, have access to plenty of branches, and earn interest, then we recommend you go with other banks.
Here are three alternatives to consider:
- Bluevine: Best for business owners who want to enjoy a 2.0% APY on their business checking accounts. Capital One doesn’t offer any interest-bearing checking accounts.
- Axos Bank: Best for businesses that want to open a business checking account online. Capital One requires you to visit a local branch to apply for an account.
- Chase Bank: Best for businesses that want to have access to more than 4,300 branches in 48 states. Capital One has only 755 branches in a few states.
Check out more providers in our list of the best small business checking accounts.
Bottom Line
The business checking products of Capital One are great choices for business owners who want fee-free unlimited transactions and access to both traditional and online and mobile banking. Depending on your cash deposit transaction volume, you can choose to open a Spark Business Basic or a Spark Business Unlimited checking account.
Both products feature waivable fees and access to loans, business cards, and business savings. As a business owner, this is beneficial since you can expand your business with SBA loans, track your employees’ business spending, and grow your funds.
