For business owners who have had financial troubles and found it difficult to open bank accounts, Woodforest National Bank is an excellent choice as it offers a Second Chance Business Checking account. This account provides a chance to rebuild banking history and access standard banking services.
This traditional community bank also has four other business checking accounts:
- Business Simple Checking has 250 free monthly transactions and a waivable $12 monthly service fee.
- Advantage Business Checking comes with 500 fee-free transactions and a waivable $20 15 monthly service fee.
- Business Checking provides an earnings credit that can offset its $18 monthly service fee.
- Business Plus Checking offers an annual percentage yield (APY) and a waivable $15 monthly service fee.
All the five checking accounts feature a Woodforest business debit card that’s subject to a $15 setup fee, withdrawn from your checking account.
Pros
- Waivable monthly service fees
- High free transaction limits
- Second Chance Business Checking account
Cons
- Low APY
- Need to visit a branch for account opening
- $100 opening deposit
Features
- Business debit card
- Online and mobile banking
- 0.35% The APY rate is effective as of 9/29/2023 and subject to change at any time. There's no minimum balance required to earn APY. APY for Business Plus Checking
- Access to Merchant Acquiring Solutions
- Variety of small business loans
- Business savings, money market accounts, and certificates of deposit (CDs)
How Woodforest National Bank Stacks Up With Its Competitors
Monthly Service Fee | Monthly Transaction Limit Before Fees | ATM Fee | Geographic Availability | |
|---|---|---|---|---|
 Business Simple Checking | 250, then 25 cents per excess item | |||
 Silver Business Checking | $0 | 125, then 50 cents per item | All states
U.S. Bank is available in all states via online banking. It has branches in Arizona, Arkansas, California, Colorado, Illinois, Indiana, Iowa, Kansas, Kentucky, Minnesota, Missouri, Montana, Nebraska, Nevada, New Mexico, North Carolina, North Dakota, Ohio, Oregon, South Carolina, South Dakota, Tennessee, Texas, Utah, Washington, Wisconsin, and Wyoming.
| |
 Business Checking | $0 | None | Refunds ATM fees up to $7 monthly | All states, online-only |
Visit Novo
Novo is a fintech platform backed and FDIC-insured by a supporting bank partnership with Middlesex Federal Savings.
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Compared to U.S. Bank, Woodforest National Bank offers a higher free transaction limit. However, U.S. Bank and Novo offer business checking accounts with no monthly service fees. In addition, Novo does not limit fee-free transactions and refunds ATM operator fees up to $7 each month. Both providers also allow customers to open checking accounts online—unlike Woodforest National Bank, which requires you to visit a branch to open an account.
When Woodforest National Bank Is a Good Fit
- Business owners with prior financial issues: Woodforest National Bank provides a Second Chance Business Checking account for business account holders with closed accounts, providing an opportunity to improve their finances and banking history.
- Businesses with a low monthly transaction volume: With Business Simple Checking, you get up to 250 free items each month.
- Businesses with a moderate to high monthly transaction volume: With Advantage Business Checking, you get up to 500 free monthly transactions.
- Sole proprietors, nonprofits, and government entities wanting an interest-earning account with unlimited check writing: With Business Plus Checking, you enjoy no additional charges, regardless of the number of checks you write while earning interest in one account.
- Business owners seeking small business loans: The bank offers multiple financing solutions through unsecured lines of credit, revolving lines of credit, term loans, and business auto loans. For comparison, you can also check out our list of the best banks for small business loans.
When To Consider Woodforest National Bank Alternatives
- Businesses that want a free business checking account: While Woodforest National Bank offers waivable fees, all checking accounts have monthly service fees. It even charges to set up your debit card, which is free with other providers. You can check out our list of banks and financial technology (fintech) providers with the best free business checking accounts.
- Businesses located outside of Woodforest National Bank’s service areas: With more than 750 branches in 17 states—Alabama, Florida, Georgia, Illinois, Indiana, Kentucky, Louisiana, Maryland, Mississippi, New York, North Carolina, Ohio, Pennsylvania, South Carolina, Texas, Virginia, and West Virginia—it has a solid presence. However, if you prefer access to nationwide branches, consider Chase, which has a physical presence in 48 states. Read our Chase Business Complete Banking review to learn more.
- Business owners looking for higher APY earnings: Although Woodforest National Bank offers an interest-bearing account, Business Plus Checking, the interest rate is low at 0.35% The APY rate is effective as of 9/29/2023 and subject to change at any time. There's no minimum balance required to earn APY. . Consider Bluevine, as it provides 2.0% APY on qualifying balances up to $250,000. Our review of Bluevine business checking offers more details on its product.
- Businesses sending international wires frequently: Woodforest National Bank’s outgoing international wire transfer fee for United States dollars (USD) is steep at $85. We recommend Mercury, where all domestic and USD international wires are free. Check out our Mercury business checking review, which provides additional information.
Our roundup of the best small business checking accounts contains additional recommendations. You may also be interested in our list of the top banks for small businesses in New York.
Woodforest National Bank Business Checking Overview
Woodforest National Bank Business Checking Requirements
Applicants must visit a branch to open a checking account as part of the Woodforest National Bank business checking requirements.
Beneficial owners (individuals who own 10% or more of the equity interests of the legal entity) don’t need to be present to open an account. Any representative authorized to open an account on behalf of the legal entity can provide information about the beneficial owners via the beneficial ownership form. This form requires the following information:
- Name
- Date of birth
- Social Security number (US citizens)
- Passport number and country of issuance (for non-US citizens)
- Residential address
- Country of citizenship
- Country of residence
- Percentage of ownership for each beneficial owner
The same information will be required for each controlling individual. Certification that the information provided is complete and correct is also needed.
Here are Woodforest National Bank’s additional business checking requirements based on entity type:
The owner of the business may open this account. Documentation required is state-specific:
- Alabama: Business occupational license issued by city or county where operating
- Florida: Registration of fictitious name filed with department of state
- Georgia: Occupation tax certificate, business license, or registration of trade name filed in county of operation
- Illinois: Assumed name application and certificate of ownership obtained from county clerk’s office
- Indiana: Certificate of assumed name filed with county recorder’s office in county of operation
- Kentucky: Certificate of assumed name filed with county clerk’s office in county of operation
- Louisiana: Certificate of assumed name filed with county parish clerk’s office in county of operation
- Mississippi: Privilege tax license filed in county or city of operation
- Maryland: Trade name registration filed with Maryland Department of Assessments and Taxation
- New York: Business certificate filed with county clerk’s office in county of operation
- North Carolina: Certificate of assumed name filed with registrar of deeds in county of operation
- Ohio: Trade name registration filed with Secretary of State
- Pennsylvania: Registration of fictitious name filed with Department of State
- South Carolina: Business license filed in county or city of operation or retail license filed with state
- Texas: Certificate of assumed name filed with county clerk’s office in county of operation
- Virginia: Certificate of assumed name or fictitious name filed with circuit court’s office in the county or city of operation
- West Virginia: Business registration certificate filed with West Virginia State Tax Department
Other documents:
- Franchise agreement: Only required if sole proprietorship is operating as a franchisee
- Acceptable and nonexpired ID for each authorized signer (with the exception of US Military IDs, photocopies of identifying documentation will be retained)
- Social Security numbers for each authorized signer
All general partners must be present and on the account:
- Assumed name certificate/doing-business-as (DBA): Required if partnership is doing business under a trade name, also referred to as fictitious name certificate or name registration
- Partnership agreement: Required if partnership is not clearly indicated on the assumed name certificate/DBA
- Franchise agreement
- Acceptable and nonexpired ID for each authorized signer
- Social Security numbers for each authorized signer
- Taxpayer identification number (TIN) or employer identification number (EIN) for the partnership
- Documentation on each beneficial owner of the general partnership
All general partners must be present and on the account. If the general partner is a legal entity, such as a corporation or limited liability company (LLC), the authorized representative, such as director, officer, or manager, of that entity may open the account. Legal entity general partners must be in good standing with the state:
- Certificate of partnership
- Certificate of filing
- Assumed name certificate/DBA
- Franchise agreement
- Acceptable and nonexpired ID for each authorized signer
- Social Security numbers for each authorized signer
- TIN/EIN for the partnership
- Documentation on each beneficial owner of the limited partnership
At least one individual appointed as manager (or managing member) of the business within articles/certificate of formation or most recent public information report. If a state-recognized manager will not be signing on the account, then a formal, notarized letter on company letterhead authorizing the account to be established may be requested:
- Articles of organization (also known as certificate of formation or certificate of organization)
- Certificate of foreign entity registration and foreign articles of organization (required if the LLC is opening an account in a state other than the state of original filing)
- Assumed name certificate/DBA, also referred to as fictitious name certificate or name registration
- Franchise agreement
- Proof that the LLC is active and/or in good standing in the applicable state – referred to as a certificate of good standing
- Acceptable and nonexpired ID for each authorized signer
- Social Security numbers for each manager/member and any authorized signers
- TIN/EIN for the LLC
- Documentation on each beneficial owner of the LLC
All general partners must be present and on the account. If the general partner is a legal entity, such as a corporation or LLP, then the authorized representative, such as director, officer, or manager, of that entity may open the account. Legal entity general partners must be in good standing with the state:
- Articles of organization
- Certificate of filing
- Certificate of foreign entity registration of a limited partnership
- Assumed name certificate/DBA
- Franchise agreement
- Proof that the partnership is active and/or in good standing in the applicable state; referred to as a certificate of good standing
- Acceptable and nonexpired ID for each authorized signer
- Social Security numbers for each manager/member and any authorized signers
- TIN/EIN for the LLP
- Documentation on each beneficial owner of the LLP
At least one individual appointed as director or officer of the business within articles/certificate of formation or most recent public information report. If a state-recognized director or officer will not be signing on the account, then a formal, notarized letter on company letterhead authorizing the account to be established may be requested:
- Certificate of formation or articles of incorporation
- Certificate of filing
- Certificate of foreign entity registration and foreign articles of incorporation
- Assumed name certificate/DBA
- Franchise agreement
- IRS determination letter (only required if corporation is non-profit)
- Proof that the corporation is active and/or in good standing in the applicable state; referred to as a certificate of good standing
- Acceptable and nonexpired ID for each authorized signer
- Social Security numbers for each authorized signer
- TIN/EIN for the corporation
- Documentation on each beneficial owner of the corporation
Officers or authorized parties identified within the meeting minutes and notarized letter can open the account:
- Organization’s charter
- Organization’s by-laws or operating agreement
- Signed formal letter, preferably on letterhead, and signed meeting minutes stating the Organization’s intent to open an account and who will be authorized to sign
- Acceptable and nonexpired ID for each authorized signer
- Social Security numbers for each authorized signer
- TIN/EIN for the association
Before opening an account, you may want to read our guide on how to open a business bank account. It includes a free downloadable checklist of required documents.
You may want to read our guide on how to open a business bank account. It includes a free downloadable checklist of documents banks typically require upon account opening.
Woodforest National Bank Business Checking Features
Woodforest National Bank’s business checking products include a business debit card, a second chance checking account, waivable fees, and online and mobile banking.
Second Chance Business Checking
As banks can check account and credit history through ChexSystems, those with prior banking issues might be unable to open a business checking account with other banks. Woodforest National Bank’s Second Chance Business Checking account provides an opportunity to improve your financial standing.
This account has a free monthly transaction limit of 250 and a nonwaivable monthly service fee of $15. You also need to pay $15 as a one-time account setup fee, which will be deducted from your account, for your Woodforest Business Debit Card.
Learn more about how ChexSystems work by reading our guide on how ChexSystems impacts your business.
Business Checking Accounts
In addition to Second Chance Business Checking accounts, Woodforest offers four other business checking options:
- Business Simple Checking is ideal for small businesses with low monthly activity, providing 250 fee-free transactions and charging a fee of 25 cents past the limit. The $12 monthly service fee is waived by maintaining a minimum of $5,000 in your account.
- Advantage Business Checking is suitable for businesses with higher transaction volume. It offers a fee-free limit of 500 transactions and waives the $20 monthly service charge if you maintain a $10,000 minimum balance.
- Business Checking is an analyzed account designed for companies with higher balances and activity. This account features an earnings credit allowance that can offset the bank fees, including the $18 monthly service charge.
- Business Plus Checking is optimal for sole proprietors, nonprofits, and government entities. It charges 15 cents per withdrawal, 10 cents per deposit, and 50 cents per posted deposit in your account. The $15 monthly service fee is waived by keeping a minimum balance of $2,000.
Online & Mobile Banking
With online banking, you can view current and past statements, set up e-bills for recurring payments, perform fund transfers, and re-order checks. Through the mobile app, you can also deposit checks, view balances, and manage your debit cards.
Users of the Woodforest mobile app gave 3.1 stars from about 1,300 reviews on the App Store[1]. Meanwhile, it has 4.2 stars from around 16,400 reviews on Google Play[2]. Most of the recent reviews were complaints about the buggy app. Reviewers reported they kept getting system errors and encountering login and loading issues and said that it worked well before the update.
Merchant Acquiring Solutions
Woodforest National Bank offers Delta 1st, a point-of-sale (POS) solution that integrates business software and credit card processing—leading to business flexibility and operational efficiency. You can select your hardware (countertop, wireless, or tablet) and software package.
Other Woodforest National Bank Business Products
Woodforest National Bank offers savings products, which include money market accounts, CDs, lines of credit, term loans, and commercial loans.
- Business savings: This account requires a minimum opening deposit of $100. Balances under $10,000 can earn 0.25% The APY rate is effective as of 9/29/2023 and subject to change at any time. You need to maintain a $10,000 minimum balance to earn this rate. APY, while balances over $10,000 earn 0.50% The APY rate is effective as of 9/29/2023 and subject to change at any time. You need to maintain a $10,000 minimum balance to earn this rate. APY. The $3 monthly service fee is waived by maintaining a $300 daily balance in your account. You can withdraw three times each month for free. Beyond that, $3 is charged.
- Money market: Money market accounts are available to all business entities and require a $100 opening deposit. You can earn 0.50% The APY rate is effective as of 9/29/2023 and subject to change at any time. There's no minimum balance required to earn APY. APY with no minimum daily balance required. The $15 monthly service fee is waived by maintaining a $2,500 daily balance. You can make withdrawals up to six times monthly for free. Beyond that, $20 is charged.
- CDs: Woodforest National Bank provides CD terms ranging from 14 days to 5 years. For a limited time, the bank offers 5% APY for an 8-month CD and 5.15% APY for a 13-month CD. The minimum deposit for CDs is $500.
Our comparison of business money market vs CD showcases their differences and pros and cons.
- Business Reli® unsecured line of credit: For unexpected business expenses, you can apply for an unsecured line of credit of anywhere from $500 to $10,000. Funds can be accessed online, by phone, or at a branch, and rates are fixed.
- Business revolving line of credit: For additional inventory purchases or more financing needs, you can apply for a revolving line of credit, where you obtain a minimum $5,000 loan amount. Business assets are required since this is a secured line of credit. Interest rates are variable.
- CD secured line of credit/term loan: If you need cash to pay for business costs in the short-term or seasonal period, you can apply for a line of credit or term loan of anywhere from $1,000 to $250,000. This product is secured by a Woodforest CD, and rates are fixed.
- Term loans: For business expansion, new equipment, or commercial vehicle purchases, you can apply for a term loan for a minimum of $5,000 loan amount. The repayment terms range from one to seven years. This requires payment of the principal and interest in regular installments and must be secured by your company’s business assets.
- Owner-occupied real estate: If you’re ready for property financing or refinancing of your existing commercial real estate (CRE), you can apply for this loan. You get up to 20 years of long-term financing, where rates are fixed and variable.
- Business auto loans: To support your business vehicle purchase from cars and vans to two-axle trucks, you can apply for a loan starting at $5,000 up to $250,000. Rates are fixed, and it’s available for new and used autos. For comparison, you can also check out our list of the best business auto loan providers.
- Executive line of credit: If you plan to make an investment or improve your liquidity, you can choose an unsecured executive line of credit. You can access a loan amount from $25,000 to $150,000, with variable rates.
- Commercial loans: Woodforest National Bank extends a full suite of commercial lending products that include lines of credit, term loans, and owner-occupied and investment real estate loans.
Woodforest National Bank Business Checking Reviews From Users
Woodforest National Bank business checking reviews are very minimal on third-party sites.
The bank shows low ratings of 2.8 from around 310 reviews on WalletHub[3] and 1.9 from about 110 reviews on Trustpilot[4].
Recently, users praised the bank’s customer service representatives for being responsive and helpful in quickly resolving transaction issues. They also appreciated the bank’s second chance product offer. However, some still raised complaints about banking charges and reported fraud disputes.
Bottom Line
Woodforest National Bank is an excellent community bank providing several business checking accounts—from Business Simple Checking for small businesses with low banking activity to Advantage Business Checking for enterprises with moderate business volume.
What makes the bank stand out is its Second Chance Business Checking account, making a fresh start possible for those with prior financial issues. However, if you have a strong financial history, you can find cheaper accounts with better benefits at most traditional banks.
[1]App Store
[2]Google Play
[3]WalletHub
[4]Trustpilot
