Union Bank 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.
If you run a West Coast business and need a traditional banking provider with fee-free business checking products, Union Bank is a great option. Its basic checking account, Bank Freely Business Checking, charges no monthly fee and offers unlimited fee-free combined transactions. Applicants can open and maintain a Bank Freely Business Checking account with any amount greater than $0.
Union Bank also offers analyzed business checking for businesses with more complex cash management needs. Its other banking products include savings accounts, money market accounts, credit cards, lending products, and payroll services.
Union Bank was acquired by U.S. Bank in December 2022 and will move all business bank accounts automatically to U.S. Bank beginning May 2023. Please see the U.S. Bank website for more information.
What We Like
- No monthly fee for basic accounts
- Unlimited combined transactions for basic accounts
- Up to $10,000 free cash deposits
- Rebates first two third-party ATM surcharges each statement cycle
- No incoming wire fees
Drawbacks
- Only available in California, Oregon, and Washington
- Cannot open accounts online
- Steep wire transfer fees
- No interest-earning checking
- Poorly rated mobile app
Features
- Free Union Bank Debit Mastercard BusinessCard and Business Full Service ATM Card
- Online Banking with Online Bill Pay
- Linked Business Savings Account or Business Money Market Account with no monthly fee
- Linked Ready To Go personal checking account with no monthly fee
- Overdraft Protection and Overdraft Coverage
- User access management
- Customized alerts
When Union Bank Is a Good Fit
- You want to bank without a monthly fee, minimum deposit requirements, or balance requirements: Union Bank’s Bank Freely Business Checking account charges no monthly fee. You can open and maintain your account with any amount greater than $0.
- You deposit up to $10,000 in cash per month: With Bank Freely Business Checking, you can deposit up to $10,000 in cash per month without paying fees. Upgrading to Analyzed Business Checking increases the limit to $20,000.
- You want unlimited fee-free transactions: Bank Freely Business Checking offers unlimited fee-free combined transactions. This refers to all check items deposited, debits or paid items, and credits or deposits.
- You make ATM transactions frequently: Under Bank Freely Business Checking, there’s no fee for out-of-network ATM transactions. Though third-party operator fees still apply, Union Bank will rebate your first two surcharges assessed by non-Union Bank ATM owners or operators worldwide per statement period.
- You want to keep your savings and checking accounts under the same provider: Union Bank will let you waive the monthly fee for any business savings product of your choice if you link your account to your Bank Freely Business Checking account.
- You want to keep your personal and business accounts under the same provider: The Bank Freely Business Checking account comes with a linked Union Bank Ready To Go personal checking account with no monthly service fee.
When Union Bank Is Not a Good Fit
- You don’t operate in Union Bank’s service area: Union Bank’s physical branches are located exclusively in California, Oregon, and Washington. If you need a provider with wider geographic coverage, consider Chase, which has 4,700 branches across 48 states.
- You rely on wire transfers: Outgoing Union Bank wire transfer fees vary by method of transfer but start at $15 for domestic transfers and $20 for international transfers in USD. Under the financial technology (fintech) solution Mercury, all wire transfers are free.
- You want to earn interest on checking deposits: Neither of Union Bank’s available business checking accounts earns interest. The industry leader in interest-earning checking is Bluevine, which pays qualified accounts 2.00% interest on balances up to and including $250,000.
If your small business meets one or more of these scenarios, check out our roundup of the best small business checking accounts for additional recommendations.
How Union Bank Stacks Up With Its Competitors
Monthly Fee | Monthly Transaction Limit Before Fees | Cash Deposit Fee | Minimum Opening Deposit | |
|---|---|---|---|---|
Bank Freely Business Checking | $0 | None | First $10,000 fee-free per statement period, then $2.50 per $1,000 | 1 cent |
 Business Advantage Fundamentals Banking | $16; waivable | 200, then 45 cents per item | $7,500 per statement cycle free, then 30 cents per $100 | $100 |
 Business Complete Banking | $15; waivable | 20 paper transactions, then 40 cents per item | $5,000 per statement cycle free, then $2.50 per $1,000 | None |
Union Bank Business Checking Overview
Union Bank Business Checking Requirements
To open a business bank account with Union Bank, you would need to visit a branch or set a telephone appointment through its website. You’ll be asked to prepare the following:
- Business tax identification number (TIN) or equivalent
- The following identifying information from all owners, beneficial owners, applicable contracting officers, and authorized signers
- Name
- Date of birth
- Physical personal address
- Social Security number
- Government-issued ID
You’ll also be asked to provide relevant business documents depending on location and business entity type. Click on your state to find out more.
Sole Proprietorship or General Partnership |
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Limited Partnership (LP) |
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Limited Liability Partnership (LLP) |
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Limited Liability Company (LLC) |
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Corporation |
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Sole Proprietorship or General Partnership |
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LP |
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LLP |
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LLC |
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Corporation |
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Sole Proprietorship or General Partnership |
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LP |
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LLP |
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LLC |
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Corporation |
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Union Bank Business Checking Features
Free Debit & ATM Card
Bank Freely Business Checking comes with a free Debit Mastercard BusinessCard and Business Full Service ATM Card. The Debit Mastercard BusinessCard can be used at any location that accepts Mastercard and can be added to Apple Pay, Google Pay, and Samsung Pay to make purchases at locations that accept these payment gateways. It’s protected from risk of loss or theft through Mastercard’s Zero Liability Protection.
Both the Debit Mastercard BusinessCard and the Business Full Service ATM Card can be used for ATM transactions. Transactions are free at Union Bank ATMs and, although there’s no fee for nonnetwork usage, third-party operator fees may apply. For each statement period, Union Bank will rebate the first two surcharge fees assessed by non-Union Bank ATM owners or operators.
Online Banking
You can access Union Bank’s services online via desktop or mobile. Through digital banking, you can manage cards, pay bills, schedule recurring bill payments, review up to seven years’ worth of business statements and check images, and set up customized alerts for debit and ATM transactions, withdrawals, and balances.
The mobile app, which is available for iOS and Android, also allows mobile check deposits. However, reviews on App Store and Google Play skew mostly negative, with users often criticizing the app for slow loading times and poor mobile check deposit functionality.
You can add additional users to your online Union Bank account. If you’re the main account administrator, you can customize how much of your account each additional user can access.
Business Overdraft Protection & Overdraft Coverage
Union Bank offers three ways to cover transactions against insufficient funds:
- Business Deposit Overdraft Protection: If you link your Bank Freely Business Checking account to another business checking account, business savings account, or business money market account, Union Bank will use transfers from that linked deposit account to cover any transaction against insufficient funds. Typically, you have to pay $10 per overdraft transaction, but if the linked account is a business checking account, there’s no charge.
- Business Line Overdraft Protection: Linking your Bank Freely Business Checking account to your business line of credit lets Union Bank use funds from your line of credit to cover transactions against insufficient funds. There’s a $10 daily advance fee.
- Business Overdraft Coverage: If you enroll in overdraft coverage, Union Bank will pay for all transactions against insufficient funds. However, you’re expected to pay the overdrawn amount back and will be charged an additional $33 overdraft fee.
Fee-Free Linked Accounts
If you have a Bank Freely Business Checking account, you can link one Business Savings account or Business Money Market account and one Ready to Go personal checking account to waive your monthly fees.
Other Union Bank Business Products
Savings Products
Union Bank offers two business savings products: a basic business savings account and a money market account. Both accounts charge monthly fees, which can be waived with a linked Bank Freely Business Checking account.
- Business savings account: Union Bank’s basic business savings account earns an undisclosed amount of interest on balances greater than $0. Interest is compounded daily and paid quarterly. It charges a waivable monthly fee of $5 if you choose online statements and $7 if you choose paper statements. The minimum required deposit to open an account is $100.
- Business money market: The Union Bank business money market account earns variable tiered interest that’s compounded and paid monthly. You can earn interest on any balance amount greater than $0, but there’s a minimum opening deposit requirement of $1,000. The waivable monthly fee costs $10 if you sign up for online statements and $12 if you sign up for paper statements.
Lending Products
The lending products Union Bank offers include term loans, lines of credit, commercial real estate loans, equipment leasing, and Small Business Administration (SBA) loans:
- Term loans: Union Bank offers secured and unsecured term loans for up to $1 million. Repayment terms last anywhere from 12–84 months.
- Lines of credit: Access up to $1 million worth of secured and unsecured lines of credit with interest-only monthly payments based on your balance.
- Commercial real estate (CRE) lending: The available owner-occupied real estate loans have terms of up to 20 years, with 25 years for amortization. These loans are subject to credit and collateral approval.
- Equipment leasing: Through a partnership with Marlin Leasing Corporation, Union Bank lets you lease equipment at low monthly payment rates. Rates are fixed, which protects you from rising interest rates.
- SBA Loans: As a Preferred SBA Lender, Union Bank can give its customers access to better rates and terms for SBA 504 and SBA 7(a) loans.
Business Diversity Lending Program
The Business Diversity Lending Program, which is designed to help underserved communities grow their businesses, gives women-, minority-, and veteran-owned businesses easier access to traditional loans and lines of credit. Through it, borrowers can access loan amounts of up to $2.5 million.
To qualify, your business must have been in operation for at least 2 years or more and be at least 51% owned, operated, controlled, or actively managed by a woman, minority, or veteran. Owners must also be United States citizens.
Credit Cards
The available Union Bank credit card product selection includes rewards cards, low-rate credit cards, and secured credit cards.
- Union Bank Business Preferred Rewards Visa Credit Card earns points on qualifying business purchases, gas transactions, and restaurant transactions.
- Union Bank Business Platinum Visa Credit Card is a low-rate credit card that charges a $0 annual fee and offers 0% APR for your first six months after opening.
- Union Bank Business Secured Visa Credit Card is a secured credit card that requires you to open a deposit account with a minimum balance of $500 and a maximum balance of $25,000 as collateral for the charges owed on your credit card. Your credit limit will depend on your collateral account balance amount. In our list of the best secured business credit cards, we listed this card as the best for low APR.
Payroll Services & 401(k) Plans
Through a partnership with Paychex, Union Bank offers payroll solutions and 401(k) plans that help you serve and retain your employees. These services help you automate payroll and customize the benefit packages your business offers. Union Bank’s 401(k) solutions also help you design plans that can suit both your business’s and employees’ needs.
Union Bank Business Checking Pros & Cons
| PROS | CONS |
|---|---|
| Unlimited combined transactions for basic accounts | Limited to California, Oregon, and Washington |
| Easy minimum balance requirements and opening deposit requirements for basic accounts | Poorly rated mobile app |
| No monthly fee for basic accounts | Noninterest drawing |
Bank Freely Business Checking is a fantastic business checking product for small business owners in need of in-person banking access. Where most checking accounts in today’s traditional banking market charge monthly service fees and impose strict transaction limits, Bank Freely Business Checking offers unlimited combined transactions with no monthly service charges. Applicants can open and maintain their accounts with any balance amount greater than $0.
The bank’s biggest weakness is availability. Currently, Union Bank only operates in California, Oregon, and Washington. Although it offers digital banking services to compensate for a lack of branches, its mobile app has received poor reviews from past users, with a rating of 3.4 stars on App Store and 3.7 stars on Google Play. Reviewers complain of frequent crashes, a clunky user interface (UI), and poor mobile check deposit functionality.
Alternatives to Union Bank Business Checking
If you don’t need support for in-person banking or cash deposits, it may be more optimal to move all your banking activities online. Digital-exclusive banks are as affordable as Union Bank’s basic business checking account while also offering additional cost-saving features, such as higher interest rates, cash back rewards, and unlimited ATM reimbursements.
Here are three alternative options to consider:
- Bluevine* is best for earning interest. If you meet its activity requirements, you can earn 2.00% APY on balances up to and including $250,000.
- Oxygen* is best for cash back. The mobile-only banking solution offers up to 5% cash back on purchases with partner retailers.
- Novo* is best for frequent ATM usage. It reimburses all ATM fees at the end of each month, letting you make transactions at any network of your choice.
*Providers are fintech platforms backed by and Federal Deposit Insurance Corp. (FDIC)-insured through a supporting bank partnership (Coastal Community Bank for Bluevine, The Bancorp Bank for Oxygen, and Middlesex Federal Savings for Novo).
Bottom Line
Union Bank stands out in today’s competitive banking landscape by offering what few traditional banks offer: a fee-free business checking account with unlimited fee-free transactions. However, according to recent reviews, the provider falls behind when it comes to seamless digital banking technology. Still, it’s a great fit for West Coast-based businesses in need of in-person banking access, with affordable transactions, cash deposits, and ATM fees.
