Navy Federal Credit Union 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.
Serving your country earns you several decent perks, and that includes increased access to reliable financial institutions. Navy Federal Credit Union limits membership to current and retired members of any branch of the armed forces and their eligible family and household members.
Navy Federal members enjoy many unique business banking services, including three tiers of free interest-bearing checking accounts, unlimited, fee-free electronic transactions, and lower wire transfer costs. Outside of business checking, it offers additional business banking products, such as money market accounts and certificates of deposit (CDs).
If you’re considering opening a business bank account with Navy Federal, here are a few things you need to know.
Navy Federal Credit Union
What We Like
- Numerous branch locations nationwide
- Unlimited free electronic transactions
- Free interest-bearing checking accounts
What's Missing
- Membership limited to current and retired service personnel
- Low annual percentage yield (APY) on basic accounts
- Minimum balance of $250 for sole proprietorships and $255 for all other legal entities
Features
- Debit card with contactless technology
- Three tiers of business checking accounts
- Checking account balances bear interest
- Unlimited free electronic transactions
How Navy Federal Credit Union Stacks Up With Its Competitors
APY | Cash Deposit Fee | ATM Fee | Minimum Opening Deposit | |
|---|---|---|---|---|
 | $0 for tier one, $8 for tier two, $20 for tier three; can be waived | 0.010% to 0.045% | None at Navy Federal Credit Union and Co-op ATMs | $250 for sole proprietorships; $255 for other legal entities |
 | $0 or $15 | 0.05% or 0.10% | None at Affinity Plus, MoneyPass, Co-op, and SUM ATM networks | None |
 | None | 0.20% | None at Bethpage and Co-op network ATMs | None |
When Navy Federal Credit Union Is a Good Fit
Navy Federal offers three business checking products, each designed for different business sizes. The lowest tier, called the Navy Federal Business Checking account, requires no monthly fees but charges for nonelectronic transactions past a certain limit. The higher tiers, Navy Federal Business Plus Checking and Navy Federal Business Premium Checking, have higher transaction limits but also charge higher monthly fees.
Click through the tabs below to see who each business checking product is optimal for and why.
When Navy Federal Credit Union Is Not a Good Fit
- Neither you nor any of your relatives have served in the United States Armed Forces or Department of Defense (DoD): To qualify for membership at Navy Federal, account holders must be active, retired, or veteran members of any branch of the US armed forces, have worked for the DoD, or have close family or household members that have belonged to either of these institutions. A more accessible credit union would be Affinity Plus Credit Union as its only prerequisite for membership is a one-time donation to the Affinity Foundation.
- You want to earn competitive interest rates: Although Navy Federal offers free interest-bearing business checking accounts, the APY these accounts offer tend to be lower compared to their peers. Bluevine, which has an APY of 1.50% for qualified checking accounts, might be a better income-earning option.
- You want an account with a low opening deposit requirement: All three of Navy Federal’s business checking products require account holders to make a deposit worth at least $250. If you want to open a bank account but lack the funds to make opening deposits, consider Chase.
If your business meets one or more of these scenarios, see our guide to the best small business checking accounts for additional recommendations.
Navy Federal Credit Union Business Checking Overview
Business Checking | Business Plus Checking | Business Premium Checking | |
|---|---|---|---|
Required Opening Deposit | $250 for sole proprietorships and $255 for other legal entities | $250 for sole proprietorships and $255 for other legal entities | $250 for sole proprietorships and $255 for other legal entities |
Monthly Fees | $0 | $8 | $20; can be waived if average daily balance is above $5,000 |
Transaction Limit Before Fees | 30 | 50 | 100 |
Transaction Fees | $0 for electronic and 25 cents for nonelectronic after 30 | $0 for electronic and 25 cents for nonelectronic after 50 | $0 for electronic and 25 cents for nonelectronic after 100 |
Wire Transfer Fees | $0 for incoming, $14 for outgoing domestic, and $25 for outgoing international | $0 for incoming, $14 for outgoing domestic, and $25 for outgoing international | $0 for incoming, $14 for outgoing domestic, and $25 for outgoing international |
ATM Fees | None for Navy Federal and Co-opP ATMs | None for Navy Federal and Co-op ATMs | None for Navy Federal and Co-op ATMs |
None | None | None | None |
APY | 0.010% | 0.010% | 0.035% to 0.045%, depending on account balance |
Navy Federal Credit Union Business Checking Requirements
Opening a business checking account with Navy Federal requires first applying for membership. To qualify for membership, you have to be one of the following:
- An active service member, retired service member, or veteran
- An immediate family member of military service personnel; parents, grandparents, children, grandchildren, siblings, spouses, and household members all qualify
- An employee of the DoD, which includes DoD civilian employees, contractors and US government employees working in DoD stations, and DoD civilian retirees and annuitants
Navy Federal Credit Union Business Checking Features
Three Business Checking Accounts
Navy Federal’s business checking products have been split into three tiers: Business Checking for small businesses, Business Plus Checking for growing businesses, and Business Premium Checking for large businesses. Its lower tiers cost the least to maintain, but its highest tier accommodates larger transaction quantities and rewards high earnings.
The main difference between the three tiers is the transaction limit before fees. Business Checking, which is Navy Federal’s most basic business checking account, only provides 30 free nonelectronic transactions before charging a 25-cent fee per transaction. In comparison, Business Plus Checking provides 50 free nonelectronic transactions while Business Premium Checking provides 100.
Unlimited Fee-free Electronic Transactions
Although nonelectronic transactions have different limits depending on the account type, Navy Federal account holders can make as many electronic transactions as they want without having to pay a fee.
GO BIZ Debit Card
All accounts opened under Navy Federal will receive the Navy Federal GO BIZ debit card automatically, which is a free credit card that uses contactless, tap-to-pay technology. The card has a Zero Liability policy that assures consumer protection from fraud. Under the policy, Navy Federal promises to investigate fraud claims and issue provisional credit to help consumers get their money back. The GO BIZ debit card also comes with Visa® Travel Accident Insurance.
Other Navy Federal Credit Union Business Products
Business Credit Cards
The GO BIZ Rewards Credit Card lets businesses increase their purchasing power at no annual fee and has an APR as low as 5.90%. It, like the GO BIZ Debit Card, comes with a Zero Liability policy that protects account holders from fraud. The card is available in both Visa and Mastercard forms.
What sets the GO BIZ Credit Card apart from its debit card counterpart is its rewards program. Every $1 spent using it earns 1 reward point, which account holders can use to redeem rewards like gift cards, cash back, and airline tickets.
Money Market Savings Accounts
Navy Federal offers two money market accounts: the Money Market Savings Account and the Jumbo Money Market Savings Account. These accounts earn dividend interest on a daily basis and under no term restrictions. The Money Market Savings Account requires a minimum balance of $2,500, whereas the Jumbo Money Market Savings Account offers higher APY rates when users meet the minimum balance of $100,000.
Business Certificates
Businesses that require less flexibility with their savings access can benefit from using Navy Federal’s high-dividend business certificates of deposit. Term lengths can last as long as seven years or as short as three months. The minimum purchase for a certificate of deposit at Navy Federal is $100, and outside of special offers and promotions, there’s no maximum purchase limit for certificates of deposit.
Business Loans
Aside from credit cards, Navy Federal Credit Union offers many different business loan products, such as options for real estate, vehicles, and hauling. It also has lines of credit available for businesses that need help covering gaps in cash flow.
Navy Federal Credit Union Business Checking Pros & Cons
| PROS | CONS |
|---|---|
| Full range of banking services | Restrictive Eligibility requirements |
| Free interest-bearing accounts | Low APY for basic accounts |
| Unlimited free electronic transactions | High opening deposit requirement |
In our list of the best credit unions for small businesses, we name Navy Federal as our top choice for military members, families of service members, and department of defense personnel. The number of services, combined with the institution’s low fees, make Navy Federal a great choice for veteran business owners who want a full range of business banking services.
However, for people who haven’t worked with the armed forces or the DoD, Navy Federal isn’t an option at all. Additionally, account holders will struggle to earn interest on their deposits due to the credit union’s low APY. Its opening deposit requirement is also on the high side.
Alternatives to Navy Federal Credit Union Business Checking
Navy Federal Credit Union’s main drawback is that it limits membership to former and current members of the United States service personnel. Business owners who don’t fall under this category can seek alternatives with more flexible membership requirements. Many banks and credit unions also offer more competitive interest rates.
Here are three alternative options to consider:
- Affinity Plus Federal Credit Union: Business owners that are satisfied with conducting banking activities online and want competitive APY rates can look into the Minnesota-based credit union Affinity Plus. Although Affinity Plus Federal Credit Union has no physical branches outside of Minnesota, it has a highly rated mobile app that reviewers laud for streamlining the online banking experience. To qualify for membership, business owners only need to give the Affinity Plus Foundation a one-time donation of $25.
- Bluevine: The financial technology (fintech) solution offers some of the most competitive interest rates in the market, with an APY of 1.50% for qualified business checking accounts. To qualify for its most competitive rate, businesses need to either make purchases worth at least $500 using the Bluevine debit card or receive at least $2,500 worth of payments each month from automated clearing house (ACH) transfers, wire transfers, mobile check deposits, or their merchant processing provider.
- Chase: Credit unions aren’t the only option available to business owners. Established banks like Chase offer full-service business banking while also having a sizable number of physical branches.
Bottom Line
Navy Federal understands that business banking isn’t a one-size-fits-all situation, which is why it designed three tiers of business checking accounts that minimize financial load on smaller businesses and provide the financial rewards for larger ones. Additionally, its wide range of physical branch locations makes in-person banking easy and accessible. Convenience and flexibility make Navy Federal a great banking choice for former and current members of the US service personnel and qualified family members.
