Monday, December 2nd
2024 Business Bank Account Reviews
Capital One
- 3 types of small business bank accounts: Basic Checking, Enhanced Checking, and Advantage Savings
- Monthly service fees waived with minimum balance
- Access to 70,000 network ATMs
- Integration with QuickBooks
- Can view personal and business accounts in one dashboard
- Merchant services through Worldpay
- "A+” rated and accredited by the BBB
Capital One has over 100 million clients and is the 10th largest bank in the US. It's one of four "big banks” on our list of options for business banking, but should Capital One be in your company's wallet?
3 types of business bank accounts
As is the norm for the larger financial institutions on our list, Capital One's business banking is limited in features and comes with quite a few instances of "you'll pay a fee unless... ” At the time of our review, business owners only had three choices at this bank:
- Basic Checking: $15 monthly service fee (waived with a $2,000 minimum balance), $15 fee on incoming wires and $25 on outgoing wires
- Enhanced Checking: $35 monthly service fee (waived with $25,000 minimum balance), no fees on incoming domestic wires or on up to 5 outgoing domestic wires per month
- Advantage Savings: $3 monthly service fee (waived with $300 minimum balance)
Not enough details offered upfront
That's about the extent of what Capital One can offer you for business banking. We were really annoyed by the lack of details. Integrations? Cash flow management? Other than one mention of being able to connect a Capital One business account to QuickBooks, there's not much to reassure business owners that this is going to be a smooth, integrated way to manage finances. This platform also seems to lack any way to create sub-accounts for cash flow management: we can only assume that, if you wanted to have one "envelope” for operating expenses and another for taxes, you'd have to create separate accounts - which would have the same monthly service fee/minimum balance waivers we mentioned earlier.
Not ideal if you need to deposit a lot of cash via ATM
There's also a pro/con at Capital One if your business deals with a lot of cash. On the positive side, you'll get fee-free access to a network of over 70,000 ATMs. However, if you don't have an actual Capital One branch near you, be aware that you're limited to $5,000 in ATM cash deposits per month.
Convenient if you have your personal accounts here
Of course, if you're already banking with Capital One on the personal side of things, you may like the comfort and convenience of having all of your money in one place. And, we'll give this bank that: you can indeed view all of your accounts on a single landing page, and easily move money from your business to personal and vice-versa (though we hope the flow is almost always the former).
Get a dedicated business banker - if you're big enough
If your business is scaling up or is already on the larger side, you may want to fill out the online form to determine if you're eligible to work with a dedicated business banker. Click on the "Let's connect” button and answer the questions; this could get you access to more money management tools, flexible lending options and special rates (but, again, Capital One doesn't go into detail on those). Here's an inkling, though: when we entered that we were looking for checking, savings, and money management, with an annual revenue of $500,000 to $1 million, we were essentially given the "thanks for playing” dismissal to Capital One's digital products. No dedicated business banker for us!
Mix-and-match extra services on your own
That also means you'll have to cobble together any additional services by clicking around through the Capital One site. That includes merchant services (available through a contract with Worldpay), business credit cards, and so on.
Top marks from the BBB and J.D. Power
Capital One has a perfect score with the Better Business Bureau - well, sort of. The BBB itself gives this big bank an "A+” and accreditation, in spite of the 5,200+ complaints filed in the last year alone, and the 1,700+ negative reviews also left on the BBB platform. Of course, with over 100 million clients, Capital One isn't exactly letting people down left and right even at 5K complaints. And, this bank also earned the highest score in the US Small Business Banking Satisfaction Survey in 2023, according to J.D. Power - so again, there are company owners who have no problem using Capital One for their business banking.
Better for big businesses
On the whole, Capital One may be best for businesses large enough to qualify for their dedicated business banking services (which are probably those with an annual revenue of at least $1 million). If that's you, congrats. However, for small- to mid-sized businesses, sole proprietorships, freelancers, and new startups, Capital One lacks a lot of the features that could help you grow and manage your money effectively. We give this bank a "just average” rating.
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The 10 Best Business Bank Accounts
Where Should You Open a Business Bank Account?
Running a business means keeping your finances in order, and the right bank can help you do just that. But with so many options available, it can be tough to know where to start. When you're ready to open a business bank account, you'll want to consider a few key factors to make sure you're choosing the right one for your needs.
First, think about your business' cash flow. You need easy access to your money so you can cover expenses, pay employees, and handle daily operations without a hitch. A bank with fast and hassle-free deposits and withdrawals is essential. If you ever find yourself struggling to pay vendors or make payroll because of banking delays, it could harm your business in the long run. Picking a bank that works smoothly with your financial schedule is crucial.
Business Bank Account FAQ
Continued from above...
Next, be mindful of the fees associated with business accounts. Banks often charge for everything from ATM use to wire transfers, and these fees can add up quickly. Some banks may also charge monthly maintenance fees or penalties if your account balance dips below a certain threshold. Before opening an account, take a close look at these costs and decide if they're worth it for your business. The goal is to avoid paying for services you don't need, while making sure the services you do need are affordable.
Another important factor is how the bank integrates with your business' accounting systems. Does the bank support connections with your accounting software or allow your accountant to access the account? This can save time and simplify your financial management. Some banks also let you set up permissions for other team members, so they can help manage payments or reconcile transactions. These tools can make day-to-day operations much easier and more efficient.
Got all that? Good. Now you're ready to take a look at some of today's most popular options for business banking, not just big-name financial institutions with both brick-and-mortar and digital services, but also online-only fintech platforms that often have the bells-and-whistles missing from "brand-name” financial institutions. Here's a helpful checklist to help you to compare and decide:
- In-person vs. online. Do you need the reassurance of having a physical branch nearby to do your business banking? Or are you comfortable with going fully digital? There are pros and cons to both. You may need a business bank with a brick-and-mortar option if you're going to make lots of cash deposits every month.
- Features. What are the absolute must-haves for your business banking? For some, that's the ability to have sub-accounts for easy cash flow management. For others, it's having access to a wide network of ATMS. And don't forget about integration with any software you might already be using (like QuickBooks). It's okay if you don't have that worked out yet, but keep in mind that big banks tend to offer fewer features focused on small businesses.
- Fees and limits. Be very aware of what your business banking will cost, both from month-to-month and for the types of transactions you'll be making most often. Pay attention to minimum deposit/balance requirements, limits on wire transfers (inbound/outbound), transaction limits, and so on.
- Reputation. See what the Better Business Bureau has to say about the bank, but also what business owners like you have reported. Has the banking experience made life easier to run their company or has it been a hassle?
The experts at Top Consumer Reviews have researched and ranked many of the most popular options for business banking today. This information can help you keep some of the most important factors in mind, so that you can choose an institution that helps you manage your finances effectively and supports your company's success.
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