Frost Bank Business Checking Review 2023
This article is part of a larger series on Business Banking.
Frost Bank is an outstanding choice for business owners seeking high free transaction limits with monthly service fees that can be waived in multiple ways. It provides a basic business checking account for small businesses, a midtier account for midsize businesses, and an analyzed checking account for businesses with higher balances and transaction volume.
Opening additional business accounts with Frost Bank provides fee waivers for monthly services, cashier’s checks, money orders, and stop payments. It also offers online and mobile banking access and extensive debit card alerts to reduce fraud incidents.
Frost Bank is a Federal Deposit Insurance Corp. (FDIC)-insured traditional bank with more than 150 branches in Texas, specifically in San Antonio, Austin, Corpus Christi, Dallas, Fort Worth, and Houston and the Permian Basin and Rio Grande Valley regions. It provides free ATM access at Frost ATMs, Pulse point-of-sale (POS) terminals, H-E-B and Circle K locations statewide, and CVS and Walgreens stores in Dallas and Tarrant County.
Pros
- Multiple ways to waive monthly fees
- High free transaction limits
- Free incoming wires and first three outgoing wires under Frost Business Checking Plus
- Highly rated mobile banking app
Cons
- Limited branch locations in Texas regions
- High required balances to waive monthly fees
- No annual percentage yield (APY)
Features
- Free debit card
- Online and mobile banking
- Multiple business checking accounts
- Debit card alerts
- Business savings accounts, credit cards, certificates of deposit (CDs), Small Business Administration (SBA) loans, lines of credit, term loans, and insurance
- Merchant services and treasury management services
- No ATM fees at Frost ATMs and several retail chains and terminals
How Frost Bank Stacks Up With Its Competitors
Monthly Service Fees | Monthly Transaction Limit Before Fees | Monthly Cash Deposit Fees | ATM Fee | Minimum Opening Deposit | |
|---|---|---|---|---|---|
 | $10; waivable | 200 nonelectronic items plus free unlimited electronic deposits and withdrawals | Up to $5,000 free per month, then 25 cents per item | $50 | |
 | $16, waivable | 200 items, then 45 cents per item | $7,500 free, then 30 cents per $100 | $100 | |
 | N/A | 125, then 50 cents per item | $2,500 free or 25 free cash transactions per statement cycle | None at U.S. Bank and MoneyPass ATMs | $100 |
When Frost Bank Is a Good Fit
- You have low monthly transactions: Frost Business Checking provides a free transaction limit of 200 nonelectronic items plus unlimited electronic deposits and withdrawals without charges.
- You have high monthly transactions: Midsize businesses with greater transaction activity can open Frost Business Checking Plus, which gives up to 500 free monthly transactions and up to $20,000 in free cash deposits per month.
- You don’t want to pay for monthly service fees: Frost Bank allows you to waive the monthly service fees of its checking accounts in several ways. Under the Frost Business Checking account, you can either meet at least a $1,500 daily balance, maintain a $15,000 combined average daily balance of business accounts under one business name, spend at least $1,000 using your business debit card, or have a Frost Business Checking Plus account under the same name.
- You want to open additional business accounts: As a Frost Business Checking account holder, you can open a free Frost Business Savings account with no monthly service fees. But if you have a Frost Business Checking Plus account, you can open a Frost Business Savings account and a Frost Business Checking account with waived monthly service fees.
When Frost Bank Is Not a Good Fit
- Your business is not based in Texas: Frost Bank has several branches in different Texas regions, but businesses based outside Texas that prefer banking in person can opt for Chase, which has more than 4,700 branches nationwide. Read our Chase Business Complete Banking review for more information about Chase’s basic checking account.
- You want to earn interest and cash back from your checking account: Frost Bank’s business checking accounts do not offer APY and cash back, unlike Grasshopper, which lets you earn tiered interest rates up to 2.25% with no cap on earnings and 1% unlimited cash back rewards on qualified purchases. Our review on Grasshopper Bank Business Checking helps businesses discover its beneficial product features.
- You want ATM fee savings: Aside from Frost ATMs, the bank does not charge fees at Pulse POS terminals, H-E-B and Circle K locations statewide, and CVS and Walgreens stores in Dallas and Tarrant County. But it charges $2 at nonnetwork ATMs, plus operator charges may apply. You can opt for Novo, which refunds all ATM fees at the month’s end. See our Novo Business Checking review to learn more details.
Check out more providers in our list of the best small business checking accounts.
Frost Bank Business Checking Overview
Frost Bank Business Checking Requirements
You must visit a Frost Bank branch to open a business checking account. Check out the bank’s website to see the branch locations near you.
All business owners must provide
- Company’s tax ID number (or Social Security number if sole proprietorship)
- Each account signer’s name and personal information (Social Security number, address, and job title), including a government-issued photo identification, such as a driver’s license, state ID, or United States military ID.
- Each beneficial owner’s legal name, physical address, date of birth, copy of government-issued ID, and Social Security number for US citizens.
- State certificate filings
- Entity meeting minutes authorizing signers
Documents may vary depending on your business type. You can call customer service to check what business checking documents to bring before going to a financial center.
Before opening an account, see our guide on how to open a business bank account, which includes a free downloadable checklist of required documents.
Frost Bank Business Checking Features
Frost Bank features three business checking products, debit card alerts, and access to online banking for business. It also offers additional business accounts with waived monthly service fees.
Business Checking Account Options
- Frost Business Checking: This low-tier account offers small businesses up to 200 fee-free nonelectronic items plus unlimited electronic deposits and withdrawals. Exceeding the limit, you’ll get charged 35 cents per item. The monthly service fee of $10 is waived in multiple ways. You can meet a $1,500 minimum daily balance or $15,000 combined daily balance of business accounts, spend at least $1,000 using the Frost business debit card, or have a Frost Business Checking Plus account under the same name.
- Frost Business Checking Plus: Midsize businesses requiring a higher free transaction limit can open the Frost Business Checking Plus account, which provides up to 500 items. The $30 monthly service fee can be waived, and it does not charge incoming wire transfers and the first three outgoing wire transactions. You also get up to $20,000 free cash deposits each month and will be charged 25 cents per item beyond the limit.
- Frost Analyzed Checking: Suitable for larger businesses with greater monthly transactions and cash management needs, this account lets you offset transaction fees through an earnings credit. Its $23 monthly fee can vary depending on your number of transactions, the type of services used and the current balance of the account.
Additional Account Benefits
Frost Bank business checking accounts feature added benefits.
- Frost Business Checking: You can open a Frost Business Savings account with no monthly service fee.
- Frost Business Checking Plus: Monthly service fee waivers apply when you open an additional Frost Business Checking and Frost Business Savings account. Furthermore, this account does not charge a fee for cashier’s checks, money orders, and stop payments.
- Frost Analyzed Checking: Opening this account provides access to treasury management services through Frost Treasury Connect.
Debit Card Alerts
Clients can sign up for customizable debit card alerts to safeguard their business checking accounts from fraud. Frost Bank sends a text message to inform customers if there’s a potential suspicious activity.
Users can turn on six alerts to track account activity:
- Declined transactions
- Online purchases
- Transactions outside the US
- Pay-at-the-pump transactions
- Purchases over a specific amount
- ATM withdrawals
Online and Mobile Banking
Frost Bank offers businesses an efficient way to manage their cash flow by signing up for Online Banking for Business at $5 per month.
Through this system, business owners can
- Pay company bills and vendors conveniently
- Send money via text or email using Zelle
- Transfer money within the US
- Pay business loans
- View deposited check images
- Monitor current account activity
- Check transactions up to 24 months
- Add accounting memos
- Control account access
- Freeze and unfreeze lost or stolen debit cards
- Set travel notices for more security
Business customers can download the Frost app to deposit checks through a mobile device. You can use biometric login for enhanced security and more convenience. The app also allows changing the debit card’s PIN without contacting customer service.
Frost Bank’s mobile banking app has excellent ratings and earned 4.9 out of 5 stars on both the App Store1 from nearly 40,000 reviews and Google Play2 from about 8,200 reviews. Positive feedback from users mentioned that the app is intuitive, user-friendly, and visually appealing, with a clean and modern design that can rival its big bank competitors.
Other clients also appreciate the in-app chat, which some of the largest banks lack. The users praised its online technology for its known caller feature, where the bank representative greets you personally by name. Some users, however, experienced app crashes and had mobile deposit issues, leading to a few low ratings.
Customer Service
Clients of Frost Bank can call customer service representatives through its 24/7 hotline, (800) 513-7678. Calling from the Frost app is quicker and leads to fewer security questions since the bank has a Known Caller feature. You can chat with a live agent by logging in to Frost online banking. You can also visit branches or schedule an appointment through the bank’s website.
Other Frost Bank Business Products
Frost Bank’s business products include savings accounts, CDs, credit cards, loans, and other business solutions.
Savings Accounts
The bank offers one regular savings account and two business money market accounts.
- Business Savings: This account requires a $50 opening deposit with a monthly service charge of $3.50 that can be waived by meeting at least a $500 daily balance or having a Frost Business Checking or Frost Business Checking Plus account in the same name. It provides a 1.00% APY rate, with interest compounded and credited to the account quarterly.
- Business Money Market: This account offers tiered interest rates higher than Business Savings. The initial opening deposit is $50, and the $12 monthly service fee is waived by maintaining at least a $2,500 daily balance. Balances from $0 to $49,999.99 earn an APY of 1.30% while balances from $2,500,000 and over earn the highest at 2.10%.
- Business High Yield Money Market: Exclusive to Business Checking, Business Checking Plus, and Analyzed Checking customers, this account provides even higher tiered interest rates. It has a $50 opening deposit and a $25 monthly service fee that’s waived by keeping a $25,000 daily minimum balance or $50,000 combined daily balance from personal and business accounts. APY rates start at 2.00% for lower balances and can go as high as 3.60% for higher balances.
Note that APY rates are subject to change at any time.
Business CDs
For those who prefer guaranteed returns, Frost Business CDs are available with no monthly service fee and a $1,000 opening deposit. Terms range from 14 days to two years. APY rates are between 2.20% to 4.80% depending on your chosen term and the balances you maintain. Rates are subject to change at the bank’s discretion.
Business Credit Cards
Frost Bank provides two business credit cards:
- Business Rewards Credit Card: This card has no annual fee and lets you earn points for every purchase. You can redeem rewards and choose from cash back, airline miles, gift cards, or merchandise.
- Business Platinum Credit Card: This card features individual credit lines for employees and a revolving balance option for credit lines of $50,000 and below. It also offers no annual fee.
Lending
The bank provides SBA loans, lines of credit, term loans, and other business loans.
- SBA loans: Frost Bank is a preferred lender of the SBA and offers SBA 7 (a) loans, SBA Express loans, and SBA 504 loans. Learn more about these loans by reading our guide on SBA loan types, rates, and requirements.
- Business lines of credit: To cover unexpected business expenses or purchase more inventory, you can apply for Frost Bank’s line of credit. The minimum loan amount is $5,000, and monthly payments on interest-only lines provide variable interest rates.
- Term loans: For more business capital or to acquire new equipment or commercial vehicles, you can start with a $5,000 minimum loan amount at flexible repayment terms. Equipment can have a term of one to five years, while real estate is longer, depending on the asset’s useful life.
- Other business loans: Frost Bank offers loans for commercial enterprises, such as owner-occupied real estate loans, letters of credit, equipment leasing and financing, and export-import (EXIM) financing.
Business Solutions
- Merchant services
- Treasury management services
- Fraud prevention services
- Frost at Work
Specialty Banking
- Public finance
- Correspondent services
- Global trade services
- Capital markets
Insurance
- Property and casualty insurance
- Employee benefits
Business Investments
- Investment management
- Brokerage services
- Executive financial planning services
- Wealth management
Frost Bank Business Checking Reviews From Users
Frost Bank Business Checking reviews are not available. The bank as a whole only has a few reviews, with a 3.8 out of 5 on Trustpilot3 (around 10 reviews) and a 2.8 out of 5 on WalletHub4 (some 80 reviews).
Some long-term clients said that Frost Bank has amazing customer service since it goes the extra mile to help its customers. They also highly recommended the bank to small businesses for its responsiveness.
However, others complained they could not open an account due to suspected fraud because they had multiple canceled accounts in the past. At the same time, another reported they waited months for manual verification to be completed to open an account, but nothing happened.
Bottom Line
Frost Bank’s competitive edge over big banks is its well-rated mobile banking app and online banking system, which delivers advanced technology features to prevent fraud. Its high free transaction limits and waivable monthly service fees allow business customers to save more.
In addition, clients can access a full range of business loans to help expand their business operations and access more working capital. However, if you prefer in-person banking, you can look for a bank with a nationwide presence since Frost locations are limited to Texas.
User review resources:
1App Store
2Google Play
3Trustpilot
4WalletHub
