Webster 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.
This article is part of a larger series on Business Banking.
For small businesses that want generous free monthly cash deposits, additional checking accounts with no monthly fees, interest, and a Visa business debit card, Webster Bank is an excellent choice.
It offers five business checking accounts. Businesses with a low transaction volume can start with Webster Business Value Checking, which offers 100 free monthly transactions, and later switch to Webster Complete Business Checking for unlimited free transactions. If you have a higher cash flow, you can opt for Commercial Checking for Small Business. Meanwhile, consider Webster Complete Business Checking with Interest or Commercial Checking for Small Business with Interest for accounts that earn variable annual percentage yield (APY).
You can open an account over the phone or by stopping by one of its branches in these four states: Connecticut, New York, Rhode Island, and Massachusetts.
What We Like
- Waivable fees
- Up to $999 per day or $40,000 per statement cycle in free cash deposits for Webster Complete Business Checking
- Unlimited business transactions for Webster Complete Business Checking
What's Missing
- Bank locations limited to Connecticut, Massachusetts, New York, and Rhode Island
- $500 minimum opening deposit
Features
- Free business debit card
- Online and mobile banking
- Interest-earning accounts available
- Online Banking with Bill Pay and tax payments
- Free additional checking accounts
- Cash Flow Pro Solutions available
- Relationship package with benefits
How Webster Bank Stacks Up With Its Competitors
Annual Percentage Yield (APY) | Cash Deposit Fee | ATM Fee | Minimum Opening Deposit | |
|---|---|---|---|---|
Business Value Checking | N/A | Up to $999 per day free; then $2 for the first $1,000 cash deposited, then 20 cents per $100, per business day | $3 per transaction at non-Webster Bank ATMs, plus ATM operator fees | $500 |
 Business Simple CheckingSM | N/A | Up to $5,000 per month free; then 25 cents per $100, per statement cycle | None at TD ATMs; $3 at non-TD ATMs plus operator fees | $25 |
 Business Complete Banking | N/A | $15; waivable | 20 fee-free per month, then 40 cents per transaction | None |
When Webster Bank Is a Good Fit
- You deposit cash daily: Webster Business Value Checking provides free cash deposits up to $999 per day, which is higher than most banks, allowing you to save on cash deposit fees.
- You have a low transaction volume: With Webster Business Value Checking, you get 100 free monthly transactions.
- You have a moderate monthly transaction volume: Opening a Webster Complete Business Checking account allows you unlimited transactions and up to $40,000 in free cash deposits per statement cycle.
- You have high balances and a high number of transactions: Commercial Checking for Small Business offers an earnings credit to offset monthly activity fees. You also gain access to a full suite of cash management services for your complex business needs.
- You receive wire transfers frequently: Webster Complete Business Checking offers free incoming domestic and international wires.
- You want additional checking accounts with no monthly fees: Webster Bank offers free additional checking accounts for both Webster Business Value Checking and Webster Complete Business Checking. You can also create a relationship package by opening up to three Webster Complete Business Checking accounts to maximize perks such as obtaining overdraft protection transfers and free standard traveler’s checks.
When Webster Bank Is Not a Good Fit
- Your business is located outside Webster Bank’s service areas: While Webster Bank offers in-person banking services, it’s limited to Connecticut, Massachusetts, New York, and Rhode Island. If your business is based outside these states, you can consider Chase for nationwide branch access. Check out our Chase Business Checking Accounts review to see which one fits your needs.
- You need a free primary business checking account: Webster Bank lacks this, so if your business needs can be fulfilled by online-only financial technology companies (fintechs), you can opt for Bluevine. It doesn’t require any opening deposit amount and provides 2.0% APY for qualified accounts with balances up to and including $250,000. Our Bluevine Business Checking review offers more in-depth product information.
- You want a business checking account with a low minimum opening deposit: Webster Bank requires a steep $500 opening deposit. We recommend KeyBank for its low opening deposit requirements. Find out more about its features from our KeyBank Business Checking review.
Find more options in our list of the best small business checking accounts.
Webster Bank Business Checking Overview
Webster Bank Business Checking Requirements
You can apply for a business checking account over the phone or call to make an in-person appointment before going to the nearest banking center. You can fill out this form, and a bank representative will contact you within one business day.
Before opening an account, see our guide on how to open a business bank account. It includes a free downloadable checklist of required documents.
Webster Bank Business Checking Features
Webster Bank’s business checking accounts offer multiple business checking account options, a Visa business debit card, online and mobile banking, and free additional checking accounts.
Five Business Checking Account Options
- Webster Business Value Checking: For small businesses with low transaction volumes. It provides 100 fee-free transactions and up to $999 free cash deposits per day. Its $11.95 monthly service fee is waivable.
- Webster Complete Business Checking: For businesses seeking unlimited fee-free transactions. It allows up to three linked Webster Complete Business Checking accounts (relationship package) and has a waivable $25 monthly service fee. It also offers free cash deposits of up to $40,000 per statement cycle.
- Webster Complete Business Checking with Interest: Similar to Webster Complete Business Checking but the monthly service fee is a tad higher at $26.95. The fee can be waived by maintaining a monthly average balance of $25,000 in up to three linked Webster Complete Business Checking with Interest accounts or by maintaining an active Webster Merchant Services relationship. For current rates, you can contact or visit your local branch.
- Commercial Checking for Small Business: For businesses with a high-volume cash flow, ideally at $75,000 or more. It charges per item, $1.50 per deposit ticket processed, 20 cents per check deposited, and 25 cents per check paid. Fees may be offset through earnings credit, including its $32 monthly service fee. Cash deposits are free up to $999 per day.
- Commercial Checking for Small Business with Interest: Similar to Commercial Checking for Small Business but with a slightly higher monthly service fee at $35, which can also be offset through earnings credit. To learn the current interest rates, you need to call or visit your local branch.
Free Additional Accounts
With Webster Business Value Checking, you can open an additional business checking and personal checking account at no cost. The bank waives the monthly fee on a Webster Business Value Checking account or a personal Webster Value Checking account.
Relationship Package
A relationship package helps you gain more benefits by linking accounts. To create a relationship package, you can open up to three Webster Complete Business Checking accounts or up to three Webster Complete Business Checking with Interest accounts in addition to your primary checking account.
These accounts (the “relationship package”), when combined, must reach a monthly average balance of $7,500 or be actively enrolled in Webster Merchant Services to enjoy a monthly fee waiver.
Additional benefits include the following:
- Waived monthly fees for secondary accounts
- Free personal WebsterOne® Relationship Checking account for primary accountholders
- Stop payment, overdraft protection transfer, official checks, and free standard traveler’s checks
- Exclusive Payroll Services to manage expenses and cash flow
Online & Mobile Banking
You can pay bills, view transactions, and manage accounts online. You can also securely deposit checks and transfer funds using the bank’s mobile app, which is available for download via the App Store and Google Play.
Webster Bank’s mobile app has great reviews on Google Play (4.5 out of 5) and the App Store (4.7 out of 5). Users said they appreciate the convenience, ease of use, and simple layout. However, some had issues with the mobile deposit function and experienced frequent crashing.
Business Services
- Webster Merchant Services: Small business owners can let their customers pay online, onsite, or on the phone. You can accept credit and debit cards and gain access to Clover’s suite of business applications.
- Cash Flow Pro Solutions: Designed for established and growing businesses, Webster Bank provides cash management services and online access for different bank products through Webster WebLink®. With this tool, you can collect funds electronically through ACH, initiate wire transfers, and protect yourself from fraud.
- Payroll Services: Webster Bank partnered with Complete Payroll Solutions (CPS) to provide a full range of human resources (HR) and payroll services.
Other Webster Bank Business Products
Specialty Checking/Savings Accounts
- Interest on lawyer trust account (IOLTA) and interest on lawyer account (IOLA) checking: These are suitable for law firms to support the administration of client funds. The IOLA account is only available in New York.
- Interest on real estate brokers trust account (IOREBTA) checking: This checking account is created for real estate brokers to administer escrow funds. It’s only available in Connecticut.
- Sole proprietors: Sole proprietors can view their business and personal account information jointly, receive check images each month, and enjoy a $50 discount on their first check orders.
- Health savings accounts (HSA): Business owners can provide their employees with an HSA account that’s tax-advantaged and comes with health and financial long-term wellness benefits.
Savings Products
- Webster Business Value Savings: For a $5 opening deposit, you can open a Webster Business Value Savings account and earn 0.01% interest. If you maintain a $500 minimum daily balance or have a Webster business checking account, the monthly fee can be waived. Rates and fees may vary by state and region.
- Premier Business Money Market: With a $5 opening deposit and no monthly charge, you can earn tiered interest rates, starting at 0.02%. Rates and fees may vary by state and region.
- Business certificates of deposit (CDs): For higher yields at fixed rates, you can open a CD with terms ranging from one month to five years. Contact the bank for the current rates.
Credit Cards
- Webster Visa Business Real Rewards Card: With this card, you can earn 1.5x points for every dollar you spend on eligible purchases.
- Webster Visa Business Cash Preferred Card: This card provides 3% cash back on eligible purchases and 1% unlimited cash back on all other eligible purchases.
- Webster Visa Smart Business Rewards Card: This card gives 2x points per $1 spent in the top two spend categories every month.
- Webster Visa Business Card: This card has a low introductory rate, allowing you to save on interest.
Lending Products
- Small business term loans: For additional working capital, you can apply for a business loan ranging from $10,000 to $6,000,000 with fixed rates. Preferred rates are given if you have a Webster business checking account and have set up automatic payment deductions.
- Small business lines of credit: You can access a line of credit from $10,000 to $2,000,000 for easy financing. For preferred rates, you need to fulfill similar conditions with small business term loans.
- Fast Track business loan: For an easy and quick business loan application, you can apply up to $250,000 of financing for equipment purchases, business expansion, or additional inventory. You can also get privileged financial advice from certified business bankers
- Small Business Administration (SBA) loan: You can benefit from lower down payments and longer terms with an SBA loan. Specialty programs are available for veterans and women-and-minority-owned businesses. If you have a Webster business checking account and set up automatic payment deductions, you’re given preferred rates.
- Commercial real estate (CRE) loan: For renovations, expansions, or mortgage refinancing, Webster Bank provides an array of loan terms and rates. You can also obtain guidance from business banking relationship managers, CRE specialists, and SBA specialists.
Other Banking Services
- Industry solutions: Webster Bank has industry experts who offer solutions to accountants, attorneys, and not-for-profits. It also provides association financial services, CRE financing, and tailored money management for healthcare and medical services.
- Commercial solutions: Commercial businesses are offered lending, treasury solutions, and foreign exchange risk management services.
- Wealth management services: Webster Bank has a wealth advisory team providing customized financial solutions for personal and institutional clients.
- Webster investments: For financial planning, the bank extends retirement savings planning, investment services, and life and long-term care insurance.
Webster Bank Business Checking User Reviews
Webster Bank reviews are low to average on DepositAccounts1 (1.5 out of 5) and WalletHub2 (2.8 out of 5). Most customer reviews gave negative feedback stating multiple fee charges and double charging of late fees. Others also claimed that it takes a long time to talk to a live person when calling the customer service hotline.
There are no recent positive reviews. The latest ones we found were written six years ago, praising the bank for its professional, competent, and courteous branch service. There are also no specific reviews focused on its business checking accounts.
Bottom Line
Webster Bank provides business checking accounts with high free monthly cash deposits and waivable monthly service fees. You can start with its low-tier account, Webster Business Value Checking, then switch to Commercial Checking for Small Business once you have higher balances and require complex cash management services. If your business is located in Connecticut, Massachusetts, New York, or Rhode Island, and you’re agreeable to a $500 initial opening deposit, then Webster Bank is a sound choice.
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