If you operate a commercial enterprise, possessing a robust financial account tailored explicitly for business purposes can streamline the management of your professional monetary affairs more efficiently. For self-employed individuals, it also serves to segregate personal assets from those of the business.
Overview of Bank of America’s Business Advantage Checking Accounts
Bank of America furnishes two distinct checking account offerings for businesses — a fundamental option and a more comprehensive solution suited to enterprises with more substantial banking requirements. Here’s an overview of each account’s features.
Bank of America Business Advantage Fundamentals™ Banking
• Our Score: 4/5 stars
• APY: Not Applicable
• Minimum Deposit Requirement: $100
• Sigh-Up Bonus: $200, available until June 30, 2024
• Analysis: Ideal for new and smaller businesses with fewer transactions, the Business Advantage Fundamentals™ Banking account from Bank of America has a $16 monthly fee. This fee can be waived by meeting one of the following conditions: maintaining a combined average monthly balance of $5,000 across eligible Bank of America business accounts, making $250 in qualifying debit card purchases each statement cycle, or enrolling in Preferred Rewards for Business.
This account offers numerous digital tools, including cash flow monitoring, account management features, digital debit cards, and Erica®, Bank of America’s virtual assistant.
The account allows for up to 200 free transactions and $7,500 in cash deposits per statement cycle without additional fees. Opening an account requires a $100 initial deposit, and the application can be completed online.
Bank of America Business Advantage Relationship Banking
• Our Score: 4/5 stars
• APY: Not Applicable
• Minimum Deposit Requirement: $100
• Sigh-Up Bonus: $200, available until June 30, 2024
• Analysis: The Business Advantage Relationship Banking account from Bank of America enhances the offerings available in the Business Advantage Fundamentals™ Banking package. This account includes an additional Business Advantage Relationship account and a Business Advantage Savings account, both of which are free from monthly fees.
The Business Advantage Relationship Checking account eliminates fees for transactions that are typically charged by other banks, such as incoming wire transfers, stop payments, and electronic transfers. Customers also benefit from no fees on the first 500 transactions and the first $20,000 in cash deposits made at ATMs or Financial Centers per statement cycle.
To open a Business Advantage Relationship account, a $100 minimum deposit is required. Although it has a higher monthly maintenance fee of $29.95 compared to other checking options, this fee is waived if the customer maintains a combined average monthly balance of $15,000 or qualifies as a Preferred Rewards for Business member.
Business Advantage Savings Account
Bank of America’s Business Advantage Savings account is designed for businesses looking to save surplus funds for future projects. This interest-bearing account offers low interest rates but can be linked to a business checking account. Preferred Rewards for Business members enjoy slightly higher interest rates.
Benefits:
• Can be linked with a business checking account
• Access to additional business tools
• Waivable monthly fee
Drawbacks:
• Monthly fee
• Low interest rates
• Limits on monthly transactions
Additional Bank of America Business Offerings
In addition to their checking and savings accounts, Bank of America provides a comprehensive range of business credit cards. These cards feature attractive sign-up bonuses and high reward rates in popular expenditure categories, helping you get the most out of your business spending.
Bank of America also provides a variety of other business services, including:
• Payroll solutions
• Account management services
• Business lines of credit
• Cash-secured business lines of credit
• Business term loans
• Retirement planning services
• Investment accounts and services
Explore Bank of America’s offerings to determine if their banking and financing solutions align with your business requirements.
Is a Bank of America Business Checking Account Right for You?
Bank of America is an excellent choice for small businesses that prefer face-to-face banking while also benefiting from digital tools for daily account management. With numerous ATMs and financial centers, Bank of America offers extensive local banking services. Note that using out-of-network ATMs will incur a fee, along with any charges imposed by the ATM operator.
The optimal checking account for your business depends on your cash flow and monthly transaction volume. Both accounts provide digital tools that enable you to manage your account from virtually anywhere in the world.
However, both account options come with relatively high monthly fees.
For business owners who do not require physical branch access, online banks provide similar business banking services without the burden of monthly maintenance fees. Consider comparing various banking options and services before making your final decision.
Summary
Bank of America provides several checking account options for businesses. It is important to evaluate the monthly fees and decide how much you are willing to spend on an account. While Bank of America’s fees are typical for traditional banks, meeting their minimum balance requirements can be tough for small businesses.
Due to its wide network of branches and ATMs, Bank of America’s business checking accounts are ideal for businesses that deal with a lot of cash. However, small businesses that lean towards digital banking might find online-only banks with minimal or no monthly fees more appealing.
When searching for a business bank account, it’s crucial to compare different options to find the one that suits your needs best. Look at the account features, fees, transaction limits, and additional benefits to make an informed choice.
