Farmers and Merchants State Bank (stylized F&M Bank) is a business checking provider with expertise in the agricultural industry. It offers three types of business checking accounts:
- Business First Checking: An account with no monthly fee and 100 free transactions.
- Business Essential Checking: An account that charges $5 per month (waivable with a minimum daily balance of $2,500) and offers 150 free transactions.
- Business Edge Checking: An account that provides 250 free transactions for a monthly fee of $20 (waivable with a minimum balance of $5,000 or a total deposit relationship of $25,000).
All accounts come with access to free debit cards, digital banking, and treasury management services. Other products include business savings accounts, lending solutions, and credit cards.
This article refers to Farmers and Merchants State Bank, which operates exclusively in Indiana, Michigan, and Ohio. If you want information on Farmers and Merchants Bank, a regional bank operating in California, read our Farmers and Merchants Bank business checking review.
Pros
- No monthly fee for entry-level account
- Highly-rated mobile app
- Ability to issue employee debit cards
Cons
- No branches outside Indiana, Michigan, and Ohio
- Branch visit required for account opening
- No interest-earning account
Features
- Free Business Debit Mastercard
- Online banking
- Mobile banking
- Treasury management services
- Savings products, lending products, and credit cards also available
How Farmers and Merchants State Bank Stacks Up With Its Competitors
When Farmers and Merchants State Bank Is a Good Fit
- You want to bank without a monthly fee: Most Farmers and Merchants State Bank business checking fees are pretty low. Business First Checking charges no monthly fee and has a minimum opening deposit requirement of just $100.
- You have a low monthly transaction volume: The Business First Checking account comes with just 100 free transactions. If you need more, you can upgrade to Business Essentials or Business Edge.
- You need to issue employee debit cards: Farmers and Merchants State Bank lets you issue multiple employee debit cards at no additional cost. You can customize spending limits per card.
When To Choose an Alternative
- You need nationwide access to in-person banking: Farmers and Merchants State Bank operates exclusively in Indiana, Michigan, and Ohio. If you want more flexibility in your choice of brick-and-mortar branches, choose Chase, which has branches in 48 states. Our Chase business checking review breaks down the basics of the bank’s three business checking accounts.
- You seek to earn competitive interest on checking deposits: None of Farmers and Merchants State Bank’s checking accounts earn interest. The best provider for competitive APY is Bluevine, which offers 2.0% APY on balances of $250,000 and less through its standard business checking account. Refer to our review of Bluevine business checking for the list of requirements you need to meet to qualify for the APY.
- You want to extend your Federal Deposit Insurance Corp. (FDIC) insurance: Like most business checking providers, Farmers and Merchants State Bank offers FDIC insurance of up to $250,000 for every account you open. If you want coverage for higher balances, choose Mercury, which provides FDIC insurance of up to $5 million through sweep networks. Read our Mercury business checking review for more information.
If your small business meets one or more of these scenarios, check out our guide to the best small business checking accounts for additional recommendations.
Farmers and Merchants State Bank Business Checking Overview
Farmers and Merchants State Bank Business Checking Requirements
Farmers and Merchants State Bank does not offer online account opening, so you need to visit a branch to open your account. The specific Farmers and Merchants State Bank business checking requirements needed in the application process are not listed on the bank’s website.
Farmers and Merchants State Bank Business Checking Features
Business Debit Mastercard
Your Farmers and Merchants State Bank business checking account will come with a free Business Debit Mastercard. The card is accepted anywhere Mastercard is accepted.
You can issue multiple employee debit cards and customize spending limits per card.
Digital Banking
You can access Farmers and Merchants State Bank business banking services through the website and mobile app (available on iOS and Android). Through digital banking, you can:
- View account balances, transactions, check images, and deposit slips
- Transfer funds between accounts
- Pay bills
- Download data to financial management software
- Deposit checks remotely (mobile only)
The app has a 4.8-star rating on the App Store[1] (based on more than 1,300 reviews) and a 4.4-star rating on Google Play[2] (based on 700-plus reviews). Although the majority of customers found the app easy to use, many reported that they experienced crashes frequently.
Treasury Management Services
Farmers and Merchants State Bank business checking accounts provide access to the following treasury management services:
- Merchant services provide payment acceptance support, allowing you to accept payments via credit and debit card.
- Automated clearing services let you electronically collect payments, pay vendors, process payroll, and schedule cash disbursements.
- Sweep services help you grow your deposits by moving excess funds from your checking account into interest-earning accounts.
- Fraud detection services use positive pay to compare presented check and ACH payments against authorized companies and alert you whenever suspicious activity occurs.
Other Farmers and Merchants State Bank Business Products
Farmers and Merchants State Bank offers business savings, lending solutions, and credit cards.
There are four types of Farmers and Merchants State Bank business checking accounts:
- Business Savings charges a monthly fee of $3, waivable with a minimum daily balance of $300. The opening deposit requirement is $100.
- Business Money Market Savings earns interest from 0.08% to 2.45% on balances of $1 and over. It has a monthly fee of $10, which you can waive with an average balance of $10,000.
- Flex Business Money Market Savings pays interest from 0.05% to 0.12% on balances of $2,000 and greater. The monthly fee is $3, waivable with a minimum balance of $300.
- Business CDs offer fixed rates on term lengths from 91 days to 60 months. Your account will renew automatically upon maturity.
Farmers and Merchants State Bank offers the following types of lending solutions:
- Business term loans
- Short-term operating notes
- Commercial real estate (CRE) loans
- Operating lines of credit equipment loans
- Investment property loans
- Farm equipment loans
- Agriculture loans
Credit cards at Farmers and Merchants State Bank are powered by Mastercard. Available card types include low-rate cards, cash back-earning cards, and rewards-earning cards. You can issue employee credit cards at no additional charge.
Farmers and Merchants State Bank Business Checking Reviews From Users
As of this writing, no customer has left a Farmers and Merchants State Bank business checking review on user review websites—and this is not surprising as Farmers and Merchants State Bank is a smaller regional bank. Because it requires in-person account opening, most issues customers would experience would be reported directly to the branch location rather than on a review website.
Bottom Line
Farmers and Merchants State Bank business checking fees are affordable, which makes the bank a decent choice for organizations based in Indiana, Michigan, and Ohio. On top of offering low-fee business checking products with fair monthly transaction allowances, the bank provides access to a full range of business banking services. It is best for local small businesses seeking personalized care from bankers who understand local market conditions and the unique challenges businesses within the community face.