Citizens Bank Business Checking Review 2023
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.
Ricci Recto has two years of writing experience creating digital marketing content for finance clients. She specializes in business banking.
This article is part of a larger series on Business Banking.
With zero monthly fees, 200 fee-free transactions, and fee-free cash deposits up to $5,000 Citizens Bank’s Clearly Better Business Checking is a great account for small businesses seeking affordable banking solutions from traditional providers. Organizations with higher transaction volume can upgrade to Business Advisor Checking for a waivable monthly fee of $25 and gain access to 500 fee-free transactions and fee-free cash deposits up to $20,000. Both accounts offer free debit cards, online and mobile banking, and access to Citizens Bank Merchant Services.
The bank has approximately 1,200 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.
What We Like
- 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
What's Missing
- Branches limited to 15 states: Connecticut, Delaware, Florida, Maryland, Massachusetts, Michigan, New Hampshire, New Jersey, New York, Ohio, Pennsylvania, Rhode Island, Vermont, Virginia, and Washington
- No annual percentage yield (APY)
- Mixed ratings from users
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
How Citizens Bank Stacks Up With Its Competitors
Monthly Fee | Monthly Transaction Limit Before Fees | Monthly Cash Deposit Limit Before Fees | Minimum Opening Deposit | |
|---|---|---|---|---|
 Clearly Better Business Checking | $0 | 200, then 50 cents per item | Up to $5,000 free, then $2.50 per $1,000 | None |
 Business Advantage Fundamentals Banking | $16 | 200, then 45 cents per item | Up to $7,500 free, then 30 cents per $100 | None |
 Business Complete Banking | $15 | Unlimited digital transactions; 20 paper transactions, then 40 cents per item | Up to $5,000, then $2.50 per $1,000 | None |
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.
- You need access to a full range of banking products: Citizens Bank offers business savings and certificates of deposit (CDs), Small Business Administration (SBA) loans, and business credit cards.
When Citizens Bank Is Not a Good Fit
- You need nationwide access to in-person banking services: The Citizens Bank branch network covers Connecticut, Delaware, Florida, Maryland, Massachusetts, Michigan, New Hampshire, New Jersey, New York, Ohio, Pennsylvania, Rhode Island, Vermont, Virginia, and Washington. If you operate elsewhere or want a provider with a wider geographical presence, consider national banks Bank of America or Chase.
- You want to earn interest on checking deposits: Citizens Bank checking accounts do not earn interest. The best provider for high APY is Bluevine, an online-only banking solution that offers capped 2.00% APY on balances of $250,000 or less to accounts that meet its activity requirements.
- You want to save on ATM fees: Under Citizens Bank, the fee for out-of-network ATM usage is $3.00, plus possible third-party operator fees. If you want fee-free ATM usage, choose the online-only provider Novo, which reimburses all ATM fees at the end of each month.
See more providers in our guide to the best small business checking accounts.
Citizens Bank Business Checking Overview
Terms
Clearly Better Business Checking | Business Advisor Checking | |
|---|---|---|
Required Opening Deposit | Any amount | |
Required Minimum Balance to Waive Monthly fee | N/A | $10,000 average daily balance (ADB) or $35,000 monthly combined balance to waive monthly fee |
Monthly Fees | $0 | $25 |
Transaction Limit Before Fees | 200 items per statement period | 500 items per statement period |
Excess Transaction Fee | $0.50 | $0.30 |
Domestic Wire Transfer Fees | Incoming: $18 Outgoing: $18 to $30 | |
International Wire Transfer Fees | Incoming: $12 Outgoing: $22.50 to $40 | |
ATM Fees | Free at Citizens Bank ATMs, $3 for non-network use* | |
Monthly Cash Deposit Limit | $5,000 | Up $20,000 |
Excess Cash Deposit Fee | $2.50 per $1,000 | |
Overdraft Fee | $39 per item | |
Sustained Overdraft Fee† | $30 | N/A |
APY | N/A | |
Open an Account | ||
*Third-party operator fees may apply.
†If your account remains overdrawn for four consecutive business days, Citizens Bank will charge a Sustained Overdraft Fee on the fifth business day. It will charge a second Sustained Overdraft Fee on the eighth business day if your account remains overdrawn for seven consecutive business days and on the 11th business day if your account remains overdrawn for 10 consecutive business days, up to a total of $90.
Features
Clearly Better Business Checking | Business Advisor Checking | |
|---|---|---|
Debit Card | Free Visa debit card | |
Physical Checks | Available via Deluxe Business Checks & Solutions Phone order: (800) 231-9915 | $100 off for first check order; Available via Deluxe Business Checks & Solutions Phone order: (800) 231-9915 |
Software Integrations | ||
Business Payment integrations | Citizens Merchant Services, Citizens Pay | |
Customer Service | Business banking (account opening): (800) 428-7463 Business banking (customer service): (800) 862-6200 Business online banking: (877) 229-6428 Mondays to Fridays, 7 a.m. to 7 p.m. Eastern time Saturdays, 8 a.m. to 5 p.m. ET | |
Other Products | Business savings, money markets, CDs, credit cards, lending, and insurance | |
Open an Account | ||
Citizens Bank Business Checking Requirements
To open a business bank account, you can apply through the Citizens Bank website, via phone, or at a branch.
Click on your entity type to see specific document requirements.
- 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
Additional documents may be required before your business deposit account can be opened. The lists above may change as applicable state and federal regulations are revised.
Citizens Bank Business Checking Features
Waivable Monthly Fee
If you have a Business Advisor Checking account, you can waive the $25 monthly fee through the following methods:
- Maintain an average daily balance of $10,000.
- Maintain a combined monthly balance of $35,000 across multiple Citizens Bank products. Eligible accounts include business deposit accounts, loans, and investment accounts.
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
The mobile app has a rating of 4.7 out of 5 on the App Store and 4.3 out of 5 on Google Play. Satisfied users said that the app does its job well, but it encounters glitches and bugs frequently. The login function, for example, tends to break whenever the developers roll out app updates.
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. It comes with a $30 annual fee, a $12 daily transfer fee for each day a transfer(s) occurs, 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.
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 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, account reconciliation, and accessOPTIMATM.
Other Business Checking Products
For businesses with a high volume activity and requiring access to cash management services, they can open a Citizens Analysis Business Checking account. Other specialty business checking accounts offered by Citizens Bank include Association Checking with Interest and IOLTA [Interest on Lawyers’ Trust Accounts] Checking.
Other Banking Products
Citizens Bank offers business savings, money market accounts, CDs, loans, and credit cards.
Savings Products
- 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 average daily balance.
- Business money market: With no required minimum opening deposit, you can earn a 0.02% variable interest rate. The $9.99 monthly maintenance fee can be waived if you meet the $2,500 average daily balance.
- 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. Business CDs are offered in selected areas only.
Credit Cards
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.
Lending Products
Citizens Bank offers the following lending products:
- Lines of credit up to $250,000
- Term loans up to $250,000
- Business Flex Loans from $10,000 to $150,000
- Equipment Flex Loans from $150,000 to $500,000
- Business mortgages
- SBA loans, including SBA Express loans up to $350,000, SBA 7(a) loans up to $5 million, and SBA 504 loans up to $12 million
Other Products
- 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.
Citizens Bank Business Checking Pros & Cons
| PROS | CONS |
|---|---|
| No monthly fee for basic accounts | High minimum balance requirements to waive fees for higher-tier accounts |
| Access Citizens Merchant Services | Branches limited to 15 states |
| Additional benefits for your employees, e.g., workshops, seminars, and direct support | No interest-earning checking |
As long as your business operates within the provider’s service area, Citizens Bank is a cost-effective traditional banking provider. With no monthly fees and 200 fee-free transactions per month, its basic account, Clearly Better Business Checking, is affordable to open and maintain.
Moreover, the bank provides access to merchant services for faster payment processing to streamline business operations. You can even upgrade your company’s benefits package with the free YourPlace BankingTM program for your employees to join on-site workshops and financial education seminars while obtaining direct support from a personal banker for expert guidance.
However, the bank is not as cost-efficient for organizations with higher transaction volumes. Business Advisor Checking has a monthly fee of $25, which can only be waived with an average daily balance of $10,000 or a monthly combined balance of $35,000 across multiple Citizens Bank business accounts. Additionally, there are no interest-earning checking options available.
Citizens Bank User Reviews
| PROS | CONS |
|---|---|
| Helpful and well-informed customer service | Hard-to-reach customer service |
| Poor fraud detection | |
| Long wait times for replacement cards | |
Citizens Bank has a rating of 4 out of 5 on WalletHub (based on 3,300-plus reviews) and 3.7 out of 5 on ConsumerAffairs. However, the majority of recent reviews skew negative. Although a few customers said that the bank’s customer service arm is helpful and informative, the majority of reviews published within the past three years consist of remarks on rudeness and inefficiency. Many reviewers noted that it is difficult to reach representatives and that wait times for phone customer service are overly long.
Another common complaint is the lack of effective fraud detection. Many past customers said that the bank has a tendency of flagging regular transactions as fraud, thereby blocking payments. Customers who have lost or damaged cards mentioned that the bank failed to deliver replacement cards within a reasonable amount of time. Some customers also noted that they waited upward of one month for their replacement cards.
Alternatives To Citizens Bank Business Checking
If access to physical branches is not a priority, it may be better to choose online-only banking providers. Today’s online-only banking solutions are able to offer better interest rates, lower fees, and innovative tech features.
- Bluevine* is best for business owners looking for competitive APY. If you meet its activity requirements, you can earn 2.00% interest on qualifying balances of $250,000 or less.
- Found* is best for business owners, freelancers, and solopreneurs needing bookkeeping expense tracking assistance. The platform comes with built-in bookkeeping solutions that automatically track and categorize your transactions. It uses this data to create detailed expense reports and accurate tax estimates.
- Novo* is best for business owners wanting to save on ATM fees. It reimburses all ATM operator fees at the end of each month, which gives you the freedom to make ATM transactions at any network of your choice.
*Providers are financial technology (fintech) platforms backed by and Federal Deposit Insurance Corp. (FDIC)-insured through a supporting bank partnership (Coastal Community Bank for Bluevine, Piermont Bank for Found, and Middlesex Federal Savings for Novo).
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.
