Santander 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.
Santander Bank offers tiered checking accounts that scale according to a business’s size and needs: Basic Business Checking for small businesses needing simple banking, Business Checking for the average small business, and Business Checking Plus for high-earning small businesses with increased transaction activity. It also offers Analyzed Checking for high-transaction businesses that want to earn credits on checking balances.
Santander
What We Like
- Monthly fees can be waived
- High transaction limits
- High cash deposit limits
What's Missing
- Limited ATM networks and physical branches
- Strict requirements to waive monthly fees
- Costly automated clearing house (ACH) and wire transfer fees
Features
- Tiered checking accounts:
- Basic Business Checking
- Business Checking
- Business Checking Plus
- Analyzed Checking option earns credits on balances
- Escrow and Interest on Lawyer Trust Accounts (IOLTA) accounts available
- Payroll services through ADP
- Cash deposit allowance
- Free digital banking
How Santander Stacks Up With Its Competitors
Annual Percentage Yield (APY) | Monthly Fee | ATM Fee | Minimum Opening Deposit | |
|---|---|---|---|---|
 | None | $7.50 for Basic Business Checking; can be waived | Free for Santander ATM networks; $1 per transaction + operator fees for non-Santander ATM networks | $50 |
 | None | $15 for Business Complete Checking; can be waived | Free for Chase ATM networks; $2.50/ transaction + operator fees for non-Chase ATM networks | None |
 | None | $16 for Business Advantage Fundamentals; can be waived | Free for Chase ATM networks; $2.50/ transaction + operator fees for non-Bank of America ATM networks | $100 |
When Santander Is a Good Fit
- You want a checking account that can scale with your business: Santander’s tiered checking account system is designed to cater to businesses of all sizes. Higher tiers have larger fees and balance requirements but also offer more generous transaction and cash deposit limits to accommodate increased banking activity.
- Your business handles cash regularly: Even at the lowest tier, Santander’s business checking products have generous limits on cash deposits. Its Basic Business Checking account lets business owners deposit up to $7,500 worth of cash each month.
- You want to earn credits on balances: Aside from its three-tiered checking accounts, Santander offers Analyzed Checking, a special checking account designed to help businesses with high transaction activity save on fees and streamline cash management. It earns credits on qualifying balances, which account holders can use to pay for wire transfers, ACH transfers, and teller, ATM, and money center deposit fees.
When Santander Is Not a Good Fit
- You cannot maintain an average daily balance of $1,500 or over: Santander charges a $7.50 fee to Basic Business Checking accounts that fall below the $1,500 monthly balance requirement. The minimum balance requirement increases to $5,000 for Business Checking and $40,000 for Business Checking Plus. Businesses that need more flexible balance requirements can look into Grasshopper Bank, which has no minimum balance requirements and is fee-free.
- You handle cash regularly but live outside of Santander’s jurisdiction: Santander only has physical branches and ATMs in Connecticut, Delaware, Florida, Massachusetts, New Hampshire, New Jersey, New York, Pennsylvania, and Rhode Island. Cash-reliant businesses that operate outside of these nine states will need to pay a $3 fee to withdraw money. The internet-only bank Novo helps businesses save on cash withdrawals by refunding all ATM fees.
- You rely on ACH and wire transfers: ACH transfers to non-Santander bank accounts cost $7. All incoming wire transfers cost $15, while outgoing transfers cost anywhere from $27 to $40. A better alternative would be Relay, which doesn’t charge wire transfer fees under its premium account.
See our guide to the best small business checking accounts for more recommendations.
Santander Business Checking Overview
Basic Business Checking | Business Checking | Business Checking Plus | |
|---|---|---|---|
Required Opening Deposit | $50 | ||
Required Balance Minimum | $1,500 to waive monthly fee | $5,000 to waive monthly fee | $40,000 to waive monthly fee |
Monthly Fees | $7.50; can be waived | $15; can be waived | $50; can be waived |
APY | None | ||
Transaction Limit Before Fees | 50, then 60 cents per transaction | 300, then 60 cents per transaction | 750, then 60 cents per transaction |
ACH Fees | $7; waived for payments to Santander Bank accounts | ||
Expedited Payment (Wire) Fees | $20 | ||
Wire Transfer Fees | Incoming: $15 Outgoing domestic: $27 Outgoing international United States dollars: $40 Outgoing international foreign currency: $31 | ||
ATM Fees | Free for Santander ATM networks; $3 for domestic non-Santander ATM networks; $6 for international non-Santander ATM network | ||
Cash Deposits | No fee up to $7,500, then: • Express Cash Pack®: 22 cents per $100 of deposits • Non-Express Cash Pack®: 27 cents per $100 of deposits | No fee up to $10,000, then: • Express Cash Pack®: 22 cents per $100 of deposits. • Non-Express Cash Pack®: 27 cents per $100 of deposits | No fee up to $40,000, then: • Express Cash Pack®: 22 cents per $100 of deposits. • Non-Express Cash Pack®: 27 cents per $100 of deposits |
To waive fees, account holders must meet at least one of the designated requirements for their checking account tier:
- Basic Business Checking
- Maintain an average daily balance of $1,500
- Business Checking
- Maintain an average daily balance of $5,000, or
- Have $10,000 in combined business deposit balances, or
- Receive one or more Santander Merchant Services payments in your account within the service fee period, or
- Incur $50 or more in cash management service fees within the service fee period, or
- Have three or more purchases using a Santander Business Debit Mastercard posted into your account within the service fee period
- Business Checking Plus
- Maintain an average daily balance of $40,000, or
- Have $60,000 in combined business deposit account balances with the same ownership, or
- Receive one or more Santander Merchant Services payments in your account within the service fee period, or
- Incur $50 or more in cash management service fees within the service fee period
Santander Business Checking Requirements
To open a checking bank account with Santander, applicants need to prepare:
Applicants whose business information doesn’t match their legal documentation will need to provide:
- First page of another bank statement
- Utility bill
- Current lease agreement
The checklist included in our guide to opening a business bank account can help you keep track of any other business documents banks may require.
Santander Business Checking Features
Santander offers tiered checking accounts plus an Analyzed Checking account, specialty accounts, digital banking, and a complimentary desktop scanner for check deposits.
Tiered Checking Accounts
Santander’s three tiers of checking accounts, Basic Business Checking, Business Checking, and Business Checking Plus, are designed to accommodate businesses of different sizes. Its lowest-tier account, Basic Business Checking, offers lower minimum balance requirements and fees at the cost of lower cash deposit and transaction limits. Higher-tier accounts increase fees and minimum balance requirements to provide higher transaction limits.
Analyzed Checking
Santander’s Analyzed Checking solution is designed for businesses with multiple bank accounts, high transaction activity, and enhanced cash management needs. Businesses that choose Analyzed Checking can earn credits on qualifying balances, which they can use to pay for online wire transfers, online ACH transfers, and teller, ATM, and money center deposits.
Specialty Accounts
Santander offers Escrow, Interest on Lawyer’s Trust, Zero Balance, and Sweep accounts:
- Escrow Accounts: Through Santander’s Escrow Accounts, businesses can ensure due diligence and protect their money. These accounts offer consolidated monthly statements that help keep track of client deposits and interest earned. At year-end, Santander issues the 1099 IRS tax forms automatically to participating clients to streamline tax management for Escrow account holders.
- IOLTA: Lawyers and law firms can place their income inside Santander’s IOLTA to earn interest for charitable causes. Funds generated by IOLTA typically fund legal services for individuals and communities that have limited access to them, such as seniors and people with disabilities.
- Zero Balance Accounts: Businesses can streamline financial management and track business spending by connecting their checking accounts to a Zero Balance Account, which transfers funds automatically from a master account to secure the exact amount of cash needed for specific expenses, such as payroll and inventory.
- Sweep Accounts: After connecting their master accounts to a Sweep Account, businesses set a target monthly balance. If the master account exceeds the target balance, Santander will transfer the funds automatically to a Sweep Account, which grows money through either a money market mutual fund investment account or a Repurchase Agreement Account. Note that Sweep Account investments aren’t Federal Deposit Insurance Corporation (FDIC)-insured and can still lose value.
Digital Banking
Santander’s customers can bank via its website or iOS and Android apps. Through digital banking, customers can check bank balances, set up ACH and wire transfers, transfer funds, and make bill payments. Businesses can also transfer financial management responsibilities to their employees and set access levels for selected users. Santander’s mobile deposit feature allows businesses to make deposits by taking snapshots of their physical checks and uploading the images to the mobile app.
Santander Check Deposit Link
Santander provides its account holder with a complimentary desktop scanner at $299 retail value that can scan checks for electronic deposit. Santander accepts electronic check deposits until 10 p.m. Eastern time. It can also accept multiple deposits per day.
Other Santander Business Products
Merchant Services
Santander offers merchant services powered by First Data, through which businesses can lease or purchase affordable payment terminals. The equipment Santander supplies come from the Clover line of payment solutions, which can accept payments via debit card, credit card, check, gift card, and Apple Pay. Clover hardware solutions have built-in fraud protection that keeps money safe. Additionally, Clover gives businesses access to useful business tools, such as data insights, loyalty programs, gift card customization, and more.
Through merchant services, Santander also provides mobile and online payment solutions that let businesses accept payments through devices like Android, iPhone, iPad, and desktops.
Payroll Services
Santander’s partnership with ADP lets them provide payroll processing services, such as payroll management, tax deductions and withholding, recordkeeping, and compliance alerts. Its payroll services include tax withholdings and deductions. The system keeps a record of employee time, earnings, and human resources (HR) records. Alerts help businesses stay on top of payroll tax and HR compliance laws.
Santander Commercial Card
Santander account holders can request Santander’s Mastercard-powered commercial credit card, called the Santander Commercial Card. Account holders can choose between multipurpose, travel and entertainment, and virtual cards.
Lending Options
Santander offers several business lending products, including lines of credit, term loans, owner-occupied commercial real estate mortgages, business equipment financing, and Small Business Administration (SBA) loans:
- Business line of credit: Businesses can access revolving lines of credit starting at $10,000. Lines of credit not exceeding $500,000 can be renewed once a year.
- Business term loans: Through Santander’s business term loans, businesses can borrow a minimum amount of $10,000 for a three- to five-year lending period. Interest rates under business term loans are fixed.
- Owner-occupied real estate mortgages: This lending product lets businesses acquire, renovate, or refinance real estate properties for business use. Businesses must borrow at least $25,000, and terms may last up to 25 years.
- Business equipment financing: Businesses that need to purchase or finance vehicles and equipment can use Santander’s business equipment financing to borrow a minimum amount of $50,000 at low fixed interest rates or floating rates. Terms can last from three to 10 years.
- SBA lending: As an SBA-preferred and Express Lender, Santander has the power to offer flexible SBA loans with reduced paperwork, faster approvals, and quicker access to funds. SBA charges upfront fees for lending, which businesses can finance along with their loans through Santander.
Business Money Market Savings Account
Businesses can grow their savings through Santander’s interest-earning Business Money Market Savings Account. The account requires a $50 opening balance and charges a $10 monthly fee, which can be waived by either maintaining the $1,000 minimum balance requirement or starting a Santander business checking account under the same name.
Santander lets businesses withdraw or transfer funds from their money market accounts a total of six times per service period fee. APY rates for money market accounts depend on where your business is located.
Santander Business Checking Pros & Cons
| PROS | CONS |
|---|---|
| Lower monthly fees and minimum balance requirements than other tiered checking accounts | Limited physical branches |
| Analyzed Checking earns banking credits | High monthly fees and minimum balance requirements |
| High cash deposit limits | High fees for ACH, wire transfers, and out-of-network ATM transactions |
Banks that offer tiered checking accounts usually charge at least $15 in monthly fees. In comparison, Santander is more affordable, with its lowest tier charging a $7.50 fee that can still be waived by meeting a minimum balance of $1,500. Although it charges fees for ACH, wire transfers, and out-of-network ATM withdrawals, high-transaction businesses can save more through its credit-earning Analyzed Checking account. High cash deposit limits make this institution suitable for businesses that deal with cash regularly.
Its biggest weakness is inaccessibility: the bank’s brick-and-mortar branches are limited to Connecticut, Delaware, Florida, Massachusetts, New Hampshire, New Jersey, New York, Pennsylvania, and Rhode Island. Additionally, lower-income businesses might struggle with its monthly fees and the requirements for waiving them.
Alternatives to Santander Business Checking
Given its limited physical locations, monthly fees, and high minimum balance requirements, Santander might not be an accessible banking option for many businesses. Here are three alternatives to consider:
- Chase: Best for businesses that prefer in-person banking. While Santander only has branches in Connecticut, Delaware, Florida, Massachusetts, New Hampshire, New Jersey, New York, Pennsylvania, and Rhode Island, Chase has more than 5,300 branches and 15,500 ATMs worldwide.
- Nearside: Best for new businesses that want low minimum balance requirements and fees. Santander has high fees and minimum balance requirements, which new businesses may struggle to meet.
- Bluevine: Best for businesses that want to earn an APY of 1.50% on checking balances. Santander’s tiered checking accounts don’t earn interest.
Bottom Line
Although Santander’s tiered business checking products have lower monthly fees and minimum balance requirements compared to competitors like Chase and Bank of America, the bank also has fewer standout features. Its lack of physical branch locations and ATM networks is also a major weakness, given its higher-than-average ATM fees. Its services are satisfactory for businesses in the nine states within Santander’s jurisdiction, but businesses operating outside may have to look elsewhere.
