Santander Business Checking Review 2023
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 is a good provider for Northeast-based businesses that make a high volume of cash transactions per month. Its Business Checking account offers a monthly cash deposit limit of $10,000 and a transaction limit of 300. To make banking affordable, Santander provides several easy options for waiving the $15 monthly fee. Larger businesses can upgrade to Business Checking Plus to increase their cash deposit and transaction limits.
What We Like
- Waivable monthly fees
- High transaction limits
- High cash deposit limits
Drawbacks
- Only available in Connecticut, Delaware, Florida, Massachusetts, New Hampshire, New Jersey, New York, Pennsylvania, and Rhode Island
- Strict requirements to waive monthly fees
- Costly automated clearing house (ACH) and wire transfer fees
Features
- Tiered checking accounts
- Analyzed Checking option earns credits on balances
- Escrow accounts and Interest on Lawyers’ Trust Accounts (IOLTA)
- Payroll services through ADP
- Cash deposit allowance
- Free digital banking
How Santander Stacks Up With Its Competitors
Monthly Fee | Monthly Transaction Limit Before Fees | Monthly Cash Cash Deposit Limit Before Fees | Minimum Opening Deposit | |
|---|---|---|---|---|
 Business Checking | $15; waivable | 300 free, then 60 cents per item* after the limit | $10,000 free, then 22 cents or 27 cents per $100 after the limit** | $50 |
 Business Complete Banking | $15; waivable | Unlimited digital transactions; 20 free paper transactions, then 40 cents per item after the limit | $5,000 free, then $2.50 per $1,000 after the limit | None |
 Business Advantage Fundamentals Banking | $16; waivable | 200 free, then 45 cents per item after the limit | $7,500 free, then 30 cents per $100 after the limit | $100 |
*Transactions include checks paid, teller deposits, ATM deposits, Money Center deposits, deposited Items, and ACH items (electronic debits and credits not originated by customer), Santander Check Deposit Link batch deposits, Santander Check Deposit Link items processed, and Santander Check Deposit Link ACH converted transactions
**The default fee for excess cash deposits is 27 cents per $100. Getting Santander Bank’s Express Cash Pack service lowers the fee to 22 cents per $100.
When Santander Is a Good Fit
- You make 300 transactions or fewer per month: Santander’s Business Checking account offers up to 300 fee-free transactions per month. After the limit, each excess transaction costs $0.60.
- You want to bank without a monthly fee: There are many ways to waive Business Checking’s monthly service fee. If you cannot maintain Santander’s minimum balance requirement of $5,000, you can waive the fee by 1) using the Santander Business Debit Mastercard at least three times in one statement cycle; 2) receiving one or more Merchant Services payments; 3) incurring $50 more in cash management fees; or 4) maintaining a combined balance of $10,000 across multiple Santander business deposit accounts.
- You need to deposit up to $10,000 in cash per month: The cash deposit limit for Business Checking is $10,000. Excess transactions cost 27 cents per deposit of $100 without Santander Bank’s Express Cash Pack service and 22 cents per deposit of $100 with the Express Cash Pack service.
- You want to earn credits on balances: Aside from its two checking account tiers, 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 fees for teller, ATM, and money center deposits.
- You need access to a wide range of lending products: Santander Bank provides business term loans, lines of credit, commercial real estate lending, business equipment financing, and SBA loans.
When Santander Is Not a Good Fit
- You want a bank with physical branches nationwide: Santander only has physical branches and ATMs in Connecticut, Delaware, Florida, Massachusetts, New Hampshire, New Jersey, New York, Pennsylvania, and Rhode Island. If you want the ability to conduct in-person banking anywhere in the country, choose Chase, which has 4,700 branches across 48 states.
- You want a bank with a bigger ATM network: There are only 2,000 ATMs in Santander’s network. If you want fee-free transactions at any ATM of your choice, choose Novo. It refunds all ATM fees, including international ATM fees, at the end of each month.
- You want to earn interest on checking deposits: Neither of Santander’s business checking accounts earns interest. The best small business checking account for earning interest is Bluevine, which offers 2.00% APY on balances up to and including $250,000.
- 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
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
Waivable Monthly Fee
To waive your business checking account fees, you must meet at least one of the following requirements:
Business Checking
- Maintain an average daily balance of $5,000
- Have $10,000 in combined business deposit balances
- Receive one or more Santander Merchant Services payments in your account within the service fee period
- Incur $50 or more in cash management service fees within the service fee period
- 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
- Have $60,000 in combined business deposit account balances with the same ownership
- Receive one or more Santander Merchant Services payments in your account within the service fee period
- Incur $50 or more in cash management service fees within the service fee period
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: Santander Escrow accounts offer consolidated monthly statements that help you keep track of your clients’ deposits and the interest earned on them. To streamline tax management, Santander issues participating clients the 1099 IRS Tax Forms to participating clients at year-end automatically.
- 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: You can streamline financial management and track business spending by connecting your checking accounts to a Zero Balance Account, which transfers funds from a master account automatically to secure the exact amount of cash needed for specific expenses, such as payroll and inventory.
- Sweep Accounts: Linking your business checking account to a Sweep Account helps you earn interest on excess income. Whenever your main account goes over your set target balance, Santander will transfer any excess balances to your Sweep Account automatically, 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
You can conduct digital banking transactions via the Santander website or the mobile app, which is available on both iOS and Android devices. Through digital banking, you can:
- Check bank balances
- Set up ACH and wire transfers
- Transfer funds
- Make bill payments
- Add authorized users and customize account access levels
Additionally, the app allows mobile check deposits, a feature that lets you make deposits by uploading pictures of your physical checks to the app, which has a rating of 4.7 on the App Store and 4.3 on Google Play. Reviewers commended the app for having an easy-to-follow interface but complained about inconsistent mobile check deposit functionality.
Santander Check Deposit Link
Santander provides complimentary desktop scanners (at $299 retail value) that can scan checks for electronic deposit. Santander accepts electronic check deposits until 10 p.m. ET. It can also accept multiple deposits per day.
Discounts on Check Orders
Business Checking account holders get 25% off on their first check order. Business Checking Plus users get their first check order for free as long as its value doesn’t exceed $100.
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 comes 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 desktop.
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 HR records. Alerts help businesses stay on top of payroll tax and human resources (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 a number of business lending products, including lines of credit, term loans, owner-occupied commercial real estate mortgages, business equipment financing, and 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. Annual percentage yield (APY) rates for money market accounts depend on where your business is located.
Santander Business Checking Pros & Cons
| PROS | CONS |
|---|---|
| Waivable monthly fees | Limited physical branches and ATMs |
| High transaction and cash deposit limits | No interest-earning checking |
| Well-received mobile app | High fees for ACH, wire transfers, and out-of-network ATM transactions |
Although neither of Santander’s business checking accounts is free, Santander provides many easy options for waiving monthly service fees. Day-to-day transactions are affordable because Santander offers high limits for transactions and cash deposits. However, it charges relatively high fees for ACH and wire transfers.
Its main weakness is inaccessibility—it only operates brick-and-mortar branches in Northeastern states, namely Connecticut, Delaware, Florida, Massachusetts, New Hampshire, New Jersey, New York, Pennsylvania, and Rhode Island. Additionally, there are only 2,000 ATMs in the Santander network, and there is a $3 fee for domestic nonnetwork ATM use.
Alternatives to Santander Business Checking
Although Santander Bank offers affordable business checking products, it might not meet your banking needs. If you want higher rates, lower fees, and wider geographic coverage, you may have to find a different provider.
Here are a few alternatives to consider:
- Bluevine* is best for earning interest. If you meet its activity requirements, your account can earn 2.00% interest on balances up to and including $250,000.
- Novo* is best for fee-free ATM deposits, as it reimburses all ATM fees at the end of each month.
- Chase is best for nationwide access to in-person banking. It has branches in 48 states.
Bottom Line
With high transaction limits and flexible options for waiving the monthly fee, the business checking accounts of Santander Bank are excellent and cost-efficient options for organizations operating in Northeastern states. However, if you need wider geographic coverage for ATMs and brick-and-mortar banking locations, you may have to look elsewhere.
