TAB Bank Business Savings Review 2023
This article is part of a larger series on Business Banking.
If your business is looking for a savings account that grows your capital while giving you full access to your funds, TAB Bank may be a great option. Although it doesn’t provide an ATM card for cash withdrawals, it doesn’t have any transaction limits, letting account holders move money in and out as they please. It also has a good selection of business banking products, including lending options, money market accounts, business certificates of deposit (CDs), checking accounts, treasury management, and invoicing.
What We Like
- Full-service online bank
- No monthly fee
- No transaction limit
- No cash deposits accepted
- No ATM card
- No physical branches
- 0.25% annual percentage yield (APY)
- Digital banking
- Treasury management services
- Money market, CDs, and checking available
- Partners with Autobooks for invoicing services
How TAB Bank Stacks Up With Its Competitors
Minimum Opening Deposit
ATM withdrawals unavailable
None in Allpoint ATM networks; operator fees apply for out-of-network
None in MoneyPass and Allpoint ATMs; $1.50 for out-of-network
When TAB Bank Is a Good Fit
TAB Bank earned a spot in our roundup of the best business savings accounts because of its interest-earning savings and business financing options. It’s ideal if you:
- Are comfortable with online banking: TAB Bank has no physical branches and operates entirely online. Through its digital banking options, which include web banking and mobile banking through iOS and Android, customers can transfer money, make check deposits, and pay bills.
- Go over six transactions per month regularly: Most savings accounts limit users to six fee-free transactions per month—but this bank’s business savings accounts don’t have a transaction limit. However, because it doesn’t provide an ATM card, customers cannot make cash withdrawals.
- Need access to lending products: This institution has an excellent selection of business lending products, including accounts receivable (A/R) financing, asset-based lending, equipment financing, term loans, invoice factoring, and commercial real estate (CRE) lending.
When TAB Bank Is Not a Good Fit
- You want an ATM card for your savings account: TAB Bank’s business savings account doesn’t provide an ATM card. If this is a necessity, then Live Oak Bank’s business savings account comes with an ATM card that can be used at Allpoint ATM networks nationwide.
- You prefer in-person banking: TAB Bank lacks physical branches, so all banking transactions must be performed online. Businesses that prefer in-person banking may be better served by Chase, which has over 4,700 brick-and-mortar branches across the United States.
- You work with cash regularly: TAB Bank doesn’t support cash deposits. Because of TAB Bank’s lack of physical branches and ATM withdrawal options, cash-reliant businesses will struggle to get the physical funds they need. Not only does Capital One have multiple physical branches and ATM networks, but it also has a high monthly cash deposit limit of $5,000.
Check out our guide to the best business savings accounts for additional recommendations if your small business meets one or more of these scenarios.
TAB Bank Business Savings Overview
Required Opening Deposit
Required Balance Minimum
Transaction Limit Before Fees
Automated Clearing House (ACH) Fees
$1 for same-day ACH
Wire Transfer Fees
$15 for incoming; $30 for outgoing
Open an Account
TAB Bank Business Savings Requirements
The TAB Bank business savings account application form will ask for the following information:
- Full name
- Date of birth
- Social Security number or tax ID number
- Company name
- Entity type
- Nature of business
- Doing-business-as (DBA) name, if applicable
- Email address
- Mobile number
The institution may also request certain legal business documents. Our guide to opening a business bank account provides a checklist of the documents that banks typically require.
TAB Bank Business Savings Features
Variable Interest Rate
This bank’s business savings accounts earn interest at a rate of 0.25%, and the interest is credited every month. Rates are variable and may change at any moment without notice. To earn interest, account holders must maintain the required minimum balance of $1.
TAB Bank account holders can conduct banking activities, such as checking balances, transferring funds, making deposits, and paying bills, through its website or mobile app, which is available on iOS and Android. The mobile app comes with touch and face ID functionality to enhance security for sign-ins.
Reviews for the TAB Bank app are excellent on both the App Store (4.7 out of 5) and Play Store (4.4 out of 5). Users appreciate its ease of use and convenience; we didn’t find any recent negative feedback.
Other TAB Bank Business Products
Money Market Accounts
The TAB Bank Money Market account earns interest at a rate of 0.25%. Like with its savings accounts, money market account balances of up to $250,000 are insured through the FDIC. Businesses must also make a $25 opening deposit to open an account and maintain a $1 balance to earn interest.
TAB Bank’s CDs have interest rates ranging from 3.30% to 3.92% and terms as short as six months to as long as 60 months. Customers can open multiple CD applications for one or more businesses. Only balances worth $1,000 and above earn interest.
It offers two business checking accounts: the interest-earning Business Checking account and the credit-earning Analyzed Business Checking. Both provide Mastercard debit cards, mobile banking, online banking, and bill pay.
The Business Checking account has an APY of 0.25%. Meanwhile, Analyzed Business Checking doesn’t earn interest, but it pays earnings credit at a rate of 0.25% and comes with a dedicated relationship manager.
If you’re looking for more competitive accounts, check out our guide to the best small business checking accounts.
The lending products that TAB Bank offers include A/R financing, invoice factoring, asset-based lending, equipment financing, business term loans, and commercial real estate:
- A/R financing: Businesses can use this to secure lines of credit while using unpaid customer invoices as collateral. This effectively covers gaps in cash flow and makes up for possible late payments.
- Invoice factoring: Like A/R financing, invoice factoring solves cash flow gaps by using unpaid customer invoices as collateral for securing working capital. However, unlike A/R financing, invoice factoring provides cash instead of a line of credit.
- Asset-based lending: This bank’s asset-based lending monitors business collateral and credit to underwrite asset-based loans.
- Equipment financing: Only available for trucking companies, this lets businesses secure flexible term loans for purchasing and maintaining business equipment.
- Term loans: By using an intuitive pre-qualification process, the bank provides flexible term loans for small and mid-sized businesses that may otherwise have limited access to financing options. The minimum amount a business can borrow is $30,000, while the maximum is $350,000.
- CRE: TAB Bank offers construction loans for experienced developers, bridge loans for senior housing developers, and term loans for other property types. Term loans can last up to 10 years.
Autobooks, a payments and accounting product suite, lets businesses send professional invoices directly to customers’ inboxes. The invoice leads customers to appropriate payment channels, which accept payments via debit card, credit card, and electronic bank transfer. Money goes directly to the business’ checking account. Businesses have access to payment histories that let them know which customers have paid and which have not, as well as detailed reports like balance sheets and general ledgers.
Through TAB Bank’s Treasury Management services, businesses gain access to a customizable dashboard that allows them to manage day-to-day business operations, including payroll, merchant services, relationship management, and supply chain management. The tool lets businesses control all working capital under one location.
Services under TAB Bank Treasury Management include:
- Positive pay
- Merchant services
- Online wire transfers
- Secure online banking
- Loan and account sweeps
- Remote deposit capture
- Financial balance reporting
- Lockbox services and processing
- Dedicated relationship manager
- Supply chain management services
- Analyzed business checking account
- ACH origination and payroll distribution
- Online domestic and international wire transfer services
TAB Bank Business Savings Pros & Cons
|No monthly fee||No free incoming wires|
|No transaction limit||No cash deposits available|
|Highly rated mobile app||No physical bank branches|
Given the lack of monthly fees and low minimum balance requirements, it’s affordable to maintain a TAB Bank business savings account. And because it has no transaction limits, its savings account grows money while keeping funds accessible. Besides that, the bank’s mobile app, available on iOS and Android, is highly rated and praised for being well-designed and user-friendly.
Where TAB Bank falls short is its lack of support for cash-reliant businesses. It has no brick-and-mortar branches and thus doesn’t allow cash deposits. Additionally, its business savings account doesn’t offer free incoming wires.
TAB Bank User Reviews
|Prompt and friendly response of customer service reps||Low ACH transfer limits|
|Best rates for rewards checking account and competitive rate for savings||Long wait time (90plus days) for outgoing fund transfers for new accounts|
|Great mobile banking app||Limited customer service during weekends|
|Easy to open a new account||Many restrictive conditions for moving funds|
Tab Bank has a 2.5 out of 5 rating on DepositAccounts. Users appreciate the fast and friendly service, excellent bank product rates, and easy account opening process. However, others weren’t pleased with the low ACH transfer limits, short customer service hours on weekends, and long waiting period for outgoing fund transfers for new accounts.
Alternatives to TAB Bank Business Savings
Although TAB Bank provides a decent range of business services outside of savings, its business savings account might pale in comparison to banks with higher APY offerings. Besides that, its lack of brick-and-mortar locations is a turn-off for businesses looking for physical branch banking options.
Here are three option banks to consider:
- Prime Alliance Bank is best for businesses looking for tiered APY that rewards higher balances. TAB Bank doesn’t increase interest rates for higher balances.
- Mercury is best for businesses needing fee-free wire transfers. TAB Bank charges $15 for incoming wire transfers and $30 for outgoing wire transfers.
- Chase is best for businesses seeking brick-and-mortar locations. It’s available in 48 states, whereas TAB Bank has no physical branches.
TAB Bank is a decent banking option for businesses that want to grow their excess business funds and gain access to useful treasury management services and lending products. However, given its lack of physical branches, cash deposit functionality, and ATM cards, cash-reliant businesses may have to look elsewhere.