Credit Union 1 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.
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.
Steadily expanding businesses looking to open a business banking account that can handle changing needs might want to look into Credit Union 1’s (CU1) scalable business checking accounts. Its three tiers are designed to accommodate businesses at every stage of growth, with transaction limits and interest rates increasing for higher tiers. It also offers a great range of services, including free mobile and digital banking, cash-saving sweep accounts, and fee-free ATM withdrawals.
Credit Union 1
What We Like
- Tiered business checking options
- Easy membership requirements
- Free digital banking and online bill payment
What's Missing
- High opening deposit requirement
- High minimum balance requirements
- Low annual percentage yield (APY) on interest-bearing accounts
Features
- Free ATM withdrawals at Co-op networks
- Free digital banking and online bill payments
- Visa® debit card with chip technology
- Business checks available
How Credit Union 1 Stacks Up With Its Competitors
APY | Monthly Fee | ATM Fee | Minimum Opening Deposit | |
|---|---|---|---|---|
| None for low-tier accounts, 0.01% for middle and high-tier accounts | $10 for tier one, $15 for tier two, $50 for tier three; all can be waived | None for Co-op ATM networks; $1 for non-CU1 ATMs; waivable | $100 |
 | 0.01% for low-tier accounts, 0.45% for high tier accounts | $0 for tier one, $8 for tier two, $20 for tier three; can be waived | None at Navy Federal ATMs or Co-op ATM network | $250 or $255 for tiers one and two, $5,000 to waive fee for tier three |
 | None | $15; waivable | $2.50/ transaction plus operator fees for non-Chase ATMs | None |
When Credit Union 1 Is a Good Fit
CU1’s business checking products come in three tiers. Its lowest, Business Express Checking, was designed to accommodate new and small businesses. It has a low minimum balance requirement and low fees but also has lower transaction limits than the other tiers. Meanwhile, the middle and top tiers, Business Express Plus Checking and Business Express Premium Plus Checking, have transaction limits at the cost of having higher minimum balance requirements.
- You intend to expand your business: CU1’s three-tier business checking system can accommodate the needs of growing businesses as they scale. Although minimum balances and monthly fees increase for higher tiers, CU1 rewards growth by increasing APY and transaction limits.
- Your business makes more than 200 transactions each month: All of CU1’s business checking accounts have higher transaction limits as compared to other credit unions. Its lowest tier lets businesses make up to 200 transactions fee-free. At the highest tier, businesses can make up to 600 transactions fee-free. Its transaction fees, after exceeding the transaction limit, are also relatively affordable.
- You want to save excess funds: CU1’s business checking accounts come with a feature called a Sweep Account, which is a cash management tool that deposits excess balances―funds that exceed the user’s designated target balance―automatically into a linked CU1 Savings Account. The tool streamlines saving and enhances the business’ income-earning capacity.
CU1 is one of the few financial institutions to offer banking services specifically for legal cannabis vendors. The products it offers to cannabis businesses include deposit accounts, debit cards, cash pickup services, payroll services, free ATM access and ATM funding services, and commercial real estate lending. Signing up for a CU1 account gives cannabis businesses access to free digital banking with mobile deposits, bill pay, and e-statements.
When Credit Union 1 Is Not a Good Fit
- You want to earn interest on your checking deposits: CU1’s lowest tier checking account doesn’t earn interest on balances while the higher tiers only have an APY of 0.01%, which is low compared to their competitors. A good alternative would be Bluevine, which offers an APY of 1.5% on qualified checking accounts.
- Your business cannot maintain a high average daily balance: Businesses that fail to meet CU1’s minimum balance requirements will be required to pay a monthly fee. The minimum balance requirement for each tier is $1,500, $5,000, and $25,000, respectively. Affinity Plus, another credit union with easy membership requirements, doesn’t have any minimum balance requirements and can thus make a good alternative.
- Your business needs loan products: When it comes to lending, the only products CU1 offers are business credit cards and commercial real estate loans. It lacks loan options for business expansion, such as equipment loans, vehicle loans, and lines of credit. A better option would be Self-Help Federal Credit Union, which has a number of loan products that cater specifically to small businesses.
If you meet one or more of these scenarios, check out our guide to the best banks for small businesses for additional recommendations.
Credit Union 1 Business Checking Overview
Business Express Checking | Business Express Plus Checking | Business Express Premium Plus Checking | |
|---|---|---|---|
Required Opening Deposit | $100 | $100 | $100 |
Required Balance Minimum | $1,500 | $5,000 | $25,000 |
APY | None | 0.01% | 0.01% |
Monthly Fee | $10; waived if account meets minimum average daily balance requirement or deposits Merchant Services | $15; waived if account meets minimum average daily balance requirement or deposits Merchant Services | $50; waived if account meets minimum average daily balance requirement or deposits Merchant Services |
Transaction Limit Before Fees | 200 | 350 | 600 |
Transaction Fees | 5 cents after transaction limit | 5 cents after transaction limit | 5 cents after transaction limit |
Wire Transfer Fees | $0 for incoming; $30 for outgoing domestic; varies for outgoing international | $0 for incoming; $30 for outgoing domestic; varies for outgoing international | $0 for incoming; $30 for outgoing domestic; varies for outgoing international |
ATM Fees | Free at Co-op ATM network and shared branches; $1 per transaction for third-party ATMs; up to 4 waivers per month | Free at Co-op ATM network and shared branches; $1 per transaction for third-party ATMs; up to 4 waivers per month | Free at Co-op ATM network and shared branches; $1 per transaction for third-party ATMs; unlimited waivers |
Cash Deposit Limit Before Fees | $5,000 | $20,000 | $50,000 |
Cash Deposits | 20 cents per $100 transaction after reaching limit | 20 cents per $100 transaction after reaching limit | 20 cents per $100 transaction after reaching limit |
Credit Union 1 Business Checking Requirements
To start a business checking account with CU1, business owners need to obtain membership. There are two ways to become eligible for membership:
- Contact a Member Solution Specialist or fill out a CU1 online application to determine whether the different membership eligibility requirements apply.
- If unqualified for membership, business owners can make a one-time donation of $5 to the CU1 Educational Development Association.
Credit Union 1 Business Checking Features
Interest-bearing Checking Accounts
Credit Union 1’s higher-tier business checking accounts, Business Express Plus Checking and Business Express Premium Plus Checking, both let account holders earn interest on their deposits as long as they meet a minimum balance requirement of 1 cent. The APY for both accounts is 0.01%.
Sweep Accounts
All of Credit Union 1’s business checking products come with a cash management tool: an interest-bearing ASI-insured CU1 Savings Account called a Sweep Account. Once the Sweep Account is linked to a business checking account, the user will be asked to set a target balance for their business checking account. Credit Union 1 will then deposit or “sweep” any funds from the user’s business checking account automatically that exceeds their target balance. Through the tool, users can expand the interest-earning capacity of their excess funds.
Credit Union 1 Business Visa® Debit Card
Every business checking account under Credit Union 1 comes with its own Business Visa® debit card, which helps account holders track spending, letting them stay on top of their expenses. Additionally, Visa’s real-time fraud monitoring and Zero Liability Policy tracks suspicious activity and protects users from unauthorized charges.
Free Digital Banking
Digital banking is available on Credit Union 1’s website and its mobile app, which is available on both iOS and Android. Through digital banking, users can pay bills, transfer money, view electronic statements and documents, and find nearby branches. The app also comes with a biometric login that enhances account security, and a personal dashboard that allows users to easily monitor their balances across multiple accounts.
Co-op ATM Network Access
Users of CU1’s business checking accounts can use their debit cards to withdraw money fee-free from any Co-op ATM network and shared branches. Withdrawals cost $1 per transaction at non-CU1 ATMs—but the fee can be waived for a maximum of four times for those in the low- and mid-tier accounts, while Business Express Premium Plus Checking accounts have unlimited waivers, although fees from the ATM owner still apply.
Other Features
- Business checks: Under CU1, business checks are available for order 24/7. Its Online Check order program from Deluxe lets business owners access a customizable selection of checks at fair prices.
- Merchant services: Getting CU1’s Merchant Services allows businesses to accept credit card payments, thus reducing processing costs by up to 90%. Businesses that deposit Merchant Services into their accounts can waive CU1’s monthly fee.
Other Credit Union 1 Business Products
Business Credit Cards
Business checking account holders can opt to use Credit Union 1’s Business Visa® Platinum Credit Cards. The CU1 Business Visa® Platinum Credit Card has a minimum APR of 7.74% and no annual fee. Through its partnership with uRewards, account holders can earn rewards points through card transactions, which can be redeemed for gas, groceries, travel opportunities, and more.
Credit cards under Credit Union 1 employ Visa’s Zero Liability Policy and have 24/7 account monitoring to fight fraud. Business owners can also add authorized users to their credit cards and implement transaction limits. This allows employees to use business credit cards without the risk of improper spending.
Business Savings
Business owners can also park their money through CU1’s business savings account. Just like CU1’s higher-tier business checking options, its business savings account earns interest at a rate of 0.01%, but the account only requires a minimum balance of $5.
Business Money Market Accounts
Those that want higher rates can consider CU1’s business money market accounts. Though the required opening deposit sits at a high $5,000, the CU1 money market account makes up for it by offering competitive interest rates. The lowest APY its money market accounts offer is 0.05%, but accounts with balances above $250,000 can earn interest at an APY of 0.40%.
Business Share Certificates
CU1’s most competitive interest rates can be found in its certificates of deposit. APY rates for its Business Share Certificates range from 0.35% for six-month terms and 1.00% for 60-month terms. Regardless of term length, the minimum balance requirement to open a business certificate and earn dividends is $1,000.
Other Products
- Commercial Real Estate Lending: Business owners that want to add real estate assets to their business investment portfolio can consider CU1’s Commercial Real Estate Lending solution, which offers five-, seven-, and 10-year fixed loans for all property types.
- Indirect Dealer Program: Businesses in the automotive industry can use CU1’s Indirect Dealer Program to help customers buy vehicles. The program offers auto loan rates with annual percentage rates (APR) as low as 1.99% and terms as long as 84 months. By providing fair financing options for automotive buyers, it helps automotive dealers sell vehicles faster.
Credit Union 1 Business Checking Pros & Cons
| PROS | CONS |
|---|---|
| Easy membership requirements | High opening deposit and minimum balance requirements |
| High transaction limits | Low APY for checking accounts |
| Highly-rated mobile app | Limited loan products |
Because Credit Union 1 has easy membership requirements, any business owner can access its services. Transaction limits are high even at its lowest tier, which limits the fees businesses have to pay when doing banking activity. Additionally, digital banking via mobile app is available on both iOS and Android. Although not many users have posted reviews about the CU1 mobile app, the general consensus remains positive. Satisfied reviewers remarked that the app’s interface is simple and easy to navigate.
While gaining membership might be easy, maintaining an account can be difficult, particularly for businesses with low starting capital. The minimum opening deposit CU1 requires is $100, and at its lowest tier, businesses would have to maintain balances of more than $1,500 to avoid monthly fees. CU1’s lack of loan products might also make it an unsuitable option for businesses that need assistance with cash flow.
Alternatives to Credit Union 1 Business Checking
Credit Union 1’s business checking accounts offer a great range of features. However, its monthly fees, high minimum balance requirements, and lack of loan products and competitive rates on interest might be turn-offs for some.
Here are three alternative options to consider:
- Self-Help Federal Credit Union: CU1’s business lending products are limited to business credit cards, financing options for customers of automotive dealers, and commercial real estate lending solutions. In contrast, Self-Help Federal Credit Union has several loan products specifically designed to make financing easier for small business owners.
- Affinity Plus Federal Credit Union: All it takes to gain membership at Affinity Plus Federal Credit Union is a single $25 donation to the Affinity Plus Foundation. Members that sign up for Affinity Plus FCU’s business checking account get decent interest rates on deposits (Affinity Plus FCU has an APY of 0.05%) without needing to pay a monthly fee or maintain a specific balance.
- Bluevine: The fintech service offers one of the most competitive APYs in the banking industry. Under Bluevine, qualified businesses can earn up to 1.5% APY on balances of up to $100,000.
If these still aren’t what you’re looking for, then check out more alternatives on our guide to the best small business checking accounts.
Bottom Line
Though Credit Union 1 lacks loan products and competitive interest rates, it remains a good business banking option thanks to the many useful features included in its tiered business checking accounts. Account-holders gain access to high transaction limits, low ATM fees, cash-saving sweep accounts, and free digital and mobile banking—all without facing strict membership requirements. So, if you’re looking for a credit union that’s both comprehensive and accessible, then CU1 could be the institution for you.
