Citizens Bank is a good traditional banking provider for organizations seeking affordable business checking with generous transaction limits. It offers two types of accounts for small businesses:
- Clearly Better Business Checking: A $0 account with a fee-free cash deposit allowance of $5,000 and 200 fee-free transactions
- Business Advisor Checking: A $25 account with a fee-free cash deposit allowance of $20,000 and 500 free transactions
Both offer free debit cards, online and mobile banking, and access to Citizens Bank Merchant Services. You can open a Citizens business checking account by submitting an online request form to get in touch with a banker or by visiting a branch.
Citizens Bank has over 1,000 brick-and-mortar branches. It operates exclusively in Connecticut, Delaware, Florida, Maryland, Massachusetts, Michigan, New Hampshire, New Jersey, New York, Ohio, Pennsylvania, Rhode Island, Vermont, Virginia, and Washington, D.C.
Pros
- No monthly fee and 200 free transactions per month for Clearly Better Business Checking
- Minimum opening deposit is any amount
- Waivable monthly fee for Business Advisor Checking
- Business Overdraft PassTM lets you avoid small overdrafts of $5 and less A coverage of $10 and less applies for Business Advisor Checking users
Cons
- Branches limited to Washington, D.C., and 14 states Citizens Bank has over 1,000 brick-and-mortar branches. It operates exclusively in Connecticut, Delaware, Florida, Maryland, Massachusetts, Michigan, New Hampshire, New Jersey, New York, Ohio, Pennsylvania, Rhode Island, Vermont, Virginia, and Washington, D.C.
- No annual percentage yield (APY)
- Steep wire and overdraft fees
- Nonnetwork ATM usage fee of $3, plus potential operator surcharges
Features
- Free Visa debit card
- Mobile and online banking
- Transfer funds, deposit checks, and view balances online
- Integrates with QuickBooks and Quicken
- Business overdraft protection plans
- Access to Citizens Merchant Services
- Analyzed checking, non-profit checking, Interest on Lawyer’s Trust Accounts (IOLTA)
- Savings, money market accounts, and certificates of deposit (CDs)
- Small Business Administration (SBA) loans, term loans, and lines of credit
How Citizens Bank Stacks Up With Its Competitors
When Citizens Bank Is a Good Fit
- You want a free business checking account: Citizens Bank’s Clearly Better Business Checking has no monthly fees, no minimum balance requirements, and no minimum opening deposit requirements.
- Your business has a modest transaction volume: With Clearly Better Business Checking, you get 200 free transactions and up to $5,000 in free cash deposits each month. Transactions include checks deposited, paid, or cashed.
- You need access to a full range of banking products: Citizens Bank offers business savings and CDs, SBA loans, and business credit cards.
When To Consider Citizens Bank Alternatives
- You want to earn interest on checking deposits: The Citizens Bank small business checking accounts do not earn interest. The best provider for high APY is Bluevine, an online-only banking solution that offers 2.0% APY on qualifying balances up to $250,000 under its Standard Checking account. Learn more through our review of Bluevine business checking.
- You want to save on ATM fees: Citizens Bank’s out-of-network ATM fee is $3, plus possible third-party operator fees. If you want fee-free ATM usage, choose the online-only provider Axos, which reimburses all domestic ATM fees. Read our Axos business checking review for more details.
- You regularly process wire transfers: Citizens Bank has steep incoming and outgoing wire fees. We recommend Mercury, a financial technology platform offering free wire transfers for both domestic and international transactions. Our review of Mercury business checking provides more information.
Citizens Bank Business Checking Overview
Citizens Bank Business Checking Requirements
To open a business bank account, you must submit a contact request form through the bank’s website. A banker will get in touch with you to assist you with your application, and you will be required to present relevant business documents during the application process.
Click on your entity type to see the specific documents you must submit as part of the Citizens Bank business checking requirements. Note that additional documents may be required before your business deposit account can be opened. The lists below may change as applicable state and federal regulations are revised.
- An unexpired government-issued photo ID (primary ID)
- Social Security number
- Employer identification number (EIN) or federal tax identification number (TIN)
- Assumed name certificate or fictitious name certificate
- An unexpired government-issued photo ID (primary ID) for each general partner
- EIN or federal TIN
- Partnership agreement
- Government-issued business license
- Assumed name certificate or fictitious name certificate
- Any beneficial owner who owns 25% or more of a business and the significant controller (an individual with significant responsibility for managing the business), will be required to provide additional information and complete a beneficial ownership attestation form
- An unexpired government-issued photo ID (primary ID) for each general partner
- EIN or federal TIN
- Registered certificate of limited partnership
- Partnership agreement
- Assumed name certificate or fictitious name certificate
- Any beneficial owner who owns 25% or more of a business and the significant controller (an individual with significant responsibility for managing the business), will be required to provide additional information and complete a beneficial ownership attestation form
- An unexpired government-issued photo ID (primary ID) for each signer
- Social Security number, if the entity is a sole member LLC
- EIN or federal TIN
- Assumed name certificate or fictitious name certificate
- Registered articles of organization
- Operating agreement listing the names of members and the manager, if applicable
- Banking resolution or similar document outlining roles and authorities for establishing accounts and services with the bank
- EIN assignment letter, tax ID certificate, tax ID verification letter
- Any beneficial owner who owns 25% or more of a business and the significant controller (an individual with significant responsibility for managing the business), will be required to provide additional information and complete a beneficial ownership attestation form
- An unexpired government-issued photo ID (primary ID) for each authorized signer
- EIN
- Registration of LLP
- LLP agreement, including the names of the partners
- EIN assignment letter, tax ID certificate, or tax ID verification letter
- Any beneficial owner who owns 25% or more of a business and the significant controller (an individual with significant responsibility for managing the business), will be required to provide additional information and complete a beneficial ownership attestation form
- An unexpired government-issued photo ID (primary ID) for each authorized signer
- EIN for the corporation
- Registered articles of incorporation
- Banking resolution (or similar document) outlining roles and authorities for establishing accounts and services with the bank
- Assumed name certificate or fictitious name certificate, if applicable
- Any beneficial owner who owns 25% or more of a business and the significant controller (an individual with significant responsibility for managing the business), will be required to provide additional information and complete a beneficial ownership attestation form.
- Social Security number
- EIN for the association or organization
- By-laws, charter, constitution, or other governing documents
- Assumed name certificate or fictitious name certificate, if applicable
Citizens Bank Business Checking Features
Free Debit Card
Citizens Bank issues a free debit card in its branch locations. Business checking account holders can request it via online banking, through a customer service representative at (800) 922-9999, or by stopping by a local branch. The debit card is contactless-enabled and can be connected to a digital wallet for secure payments.
Online & Mobile Banking
You can access banking services through the Citizens Bank website or mobile app (available on both the App Store and Google Play). Through digital banking, you can do the following:
- View balances
- View check images
- Deposit checks remotely
- Send and receive secure electronic payments
- Pay bills
- Sign up for custom online banking alerts
Users gave the Citizens Bank’s mobile app high ratings. On the App Store[1], it has 4.7 stars from around 490,000 reviews while it has a 4.8 rating from about 94,000 reviews on Google Play[2]. Customers who left positive reviews said that the app is reliable and provides great functionality and security protection. Meanwhile, some users complained that the app is buggy and does not allow them to log in consistently.
Overdraft Protection Plans
Citizens Bank offers overdraft solutions to protect business owners from paying overdraft fees. The Overdraft Line of Credit links your business checking account with your business credit line. You get borrowing limits of up to $10,000 to cover ATM withdrawals, debit card purchases, checks, and online bill payments when your checking balance is insufficient.
This service comes with a $30 annual fee, a $12 daily transfer fee for each day one or more transfers occur, and interest on outstanding balances. Credit approval is also required. The annual fee is waived for Business Advisor Checking account holders.
Another overdraft solution is the Savings Overdraft Transfer, where funds are automatically transferred from your savings to your checking account when your balance is insufficient to cover your transactions. No fee is collected when using this business overdraft plan.
Additionally, Citizens Bank offers Business Overdraft PassTM, which lets you avoid accidental overdrafts and their corresponding fees. An overdraft item of $5 or less will not be charged an overdraft fee. Business Advisor Checking account users get an overdraft coverage of $10 or less. No enrollment is required for this service.
Business Services
- Merchant services: With Citizens Merchant Services, small business owners can accept debit, credit, electronic benefit transfer (EBT) cards, and checks securely. You can also choose traditional or virtual point-of-sale (POS) terminals and manage face-to-face, phone, mail, and online payment processing.
- Payroll services: Payroll and human resources (HR) functions are provided by Paychex to support business owners in recruitment and hiring, staying compliant with laws and regulations, and simplifying HR processes.
- Cash management/Treasury management services: Citizens Bank provides a lockbox network, remote deposit capture, coin and currency service, ACH transactions, wire transfers, and account reconciliation.
- Sweep services: Citizens business banking services include sweep to investment, sweep to line of credit, sweep to line of investment, and SweepNet reporting. Check out our article on what a sweep account is for more information.
Other Citizens Bank Business Products
Citizens Bank also offers the following business checking accounts:
- Citizens Analysis Business Checking: An analyzed checking account with a $20 monthly fee that can be offset through earnings credit. It is designed for businesses with high transaction volume and comes with access to cash management, merchant, and fund transfer services.
- Association Checking With Interest: An interest-bearing nonprofit checking account that charges a $10 monthly fee, waivable with a minimum ADB of $2,500. It offers 200 fee-free transactions per month, with a 50-cent fee per excess transaction.
- IOLTA: An interest-earning checking account for law firms and attorneys. The IOLTA has no monthly fees or minimum balance requirements and remits all interest earned to local bar associations and other qualifying legal organizations.
- Business savings: With no required minimum opening deposit, you can earn a 0.01% variable interest rate. The $4.99 monthly maintenance fee can be waived if you meet the $500 ADB.
- Business money market: With no required minimum opening deposit, you can earn a variable interest rate. The $9.99 monthly maintenance fee can be waived if you meet the $2,500 ADB. To learn more, see our guide on what a business money market account is and how it works.
- Business CDs: For fixed-rate returns, you can open a CD for a minimum balance of $1,000 or $5,000 if monthly interest disbursement by check or transfer is required. There’s no monthly fee and terms are flexible from three to 18 months.
Citizens Bank offers two credit cards with no annual fees. The Business Everyday Points® Credit Card offers unlimited 1.5% in rewards on your everyday business spending, while the Business Platinum Credit Card offers low introductory APR for your first 12 months.
Citizens Bank offers the following lending products:
- Lines of credit up to $250,000
- Term loans up to $250,000
- Hybrid Flex loans
- Business mortgages
- SBA loans, including SBA Express loans up to $500,000, SBA 7(a) loans up to $5 million, and SBA 504 loans up to $5.5 million
To learn more about the different SBA rates and requirements, check out our guides to the:
- Healthcare practice banking: Citizens Bank offers tailored solutions for organizations in the healthcare industry. These include healthcare practice financing, cash flow management, personal banking benefits, and personal wealth management to clients in the medical, dental, eyecare, and veterinary fields.
- Citizens Pay®: The bank offers a POS financing solution, Citizens Pay. This is a buy-now-pay-later (BNPL) option you can offer customers, which may help you generate new sales.
- Insurance: Business protection plans are available in the form of long-term care insurance, key person life insurance, key business insurance, buy/sell funding, and business overhead protection insurance.
Citizens Bank Business Checking Reviews From Users
The bank has a rating of 3.9 on WalletHub[3] from around 4,700 reviews and 1.6 on ConsumerAffairs[4] from about 600 reviews. The recent Citizens Bank business checking reviews contain many negative comments.
Several checking account users reported that the bank placed a long hold on check deposits, which led to overdraft charges. Some also complained about the freezing and closure of their accounts without being notified of the reason.
While a few reviewers shared their appreciation for the service they received from helpful staff, there were a lot of complaints surrounding the bank’s limited call center operation hours. Several reported that contacting a representative takes a minimum wait time of half an hour.
Frequently Asked Questions (FAQs)
Yes, Citizens Bank’s deposits are Federal Deposit Insurance Corp. (FDIC)-insured up to $250,000 per depositor.
Yes, Citizens Bank acquired Investors Bank back in 2022 and completed the conversion of Investors Bank’s accounts to Citizens Bank in 2023.
Bottom Line
If you’re a small business owner looking for cost-effective business banking solutions from traditional providers, the Clearly Better Business Checking account of Citizens Bank is a decent choice. With a transaction limit of 200, a cash deposit limit of $5,000, and no monthly fees, the account is particularly suitable for cash-reliant businesses with low transaction volume.
User review references:
[1]App Store
[2]Google Play
[3]WalletHub
[4]ConsumerAffairs
