Bank of America offers mobile-friendly business checking with the convenience of brick-and-mortar banking.
You’ll find options for businesses of all sizes, with annual revenue ranging from six figures to several billion.
Bank of America Business Checking: Overview
Many consumers are familiar with Bank of America (BOA) personal banking, but BOA offers a range of business banking solutions for clients of all sizes, including two Business Advantage Fundamentals and Business Advantage Relationship Banking.
The benefits of these accounts include digital business performance-tracking tools, cash-back credit cards, and high-interest savings.
Both of these account options are well-suited for small business owners who have the option to switch between the two in order to tailor a banking experience to their specific needs.
Bank of America Business Checking: Fast Facts
- CEO: Brian Moynihan (2010 -)
- Year founded: 1904
- Branch locations: 3,900+ locations throughout the United States and around the globe
- ATM locations: 15,000+ ATM locations
- BBB Score: A-
- Standard & Poor’s rating: A- (Stable)
- Phone number: 1-888-287-4637 or 1-800-432-1000
- Products and services offered: Checking, savings, credit cards, auto loans, home buying, college planning, retirement planning, wealth management (through Merrill), and business banking and investment solutions for small businesses, mid-size businesses, middle-market companies, and large corporations.
Bank of America Business Checking: Account Options & Requirements
Bank of America currently offers two business bank account options:
1. Business Advantage Fundamentals Banking
This small-business checking account has the essential tools to meet your needs as a business owner. BOA’s tools are designed to offer flexible support and facilitate growth.
It’s designed to meet the daily needs of small to mid-size business owners who maintain a business checking account balance of $5,000 to $15,000.
Helpful Integrations and Features:
- Free business debit card
- Free overdraft protection when your business bank account is linked to an eligible BOA account
- Dedicated access to small business specialists
- Fee-free electronic transactions for ACH, debit card, electronic debits, mobile check deposits, remote online deposits, or Bank of America ATMs
- Up to 200 no-free non-electronic transactions (checks paid or other deposited items) then 45 cents per transaction
- Free cash deposits up to $7,500, then 30 cents per every additional $100 deposited
- Popular software app integrations like ADP payroll services, Cash Flow Monitor, QuickBooks, Zelle, and Expensify.
The Fundamentals account does charge for checks, but there are discounts based on check type and order size.
Additionally, there is a $16 monthly maintenance fee but it can be waived if you meet certain conditions each statement cycle.
2. Business Advantage Relationship Banking
The Business Advantage Relationship account is designed for medium to large-size businesses with needs that go beyond small business banking.
It’s for accountholders who complete more transactions, have a daily balance of at least $15,000 (among all Bank of America accounts), and need to manage multiple user accounts.
Like the Fundamentals account, the Advantage account offers:
- Free debit card
- Free overdraft protection if your account is linked to an Advantage Savings or other eligible BOA account. Cash Flow Monitor
- Remote deposit options via the mobile app or BOA website
- Small business account specialist support
- Integrations with ADP, QuickBooks, Expensify, and Zelle
The account also offers these unique features and perks:
- Easy multi-user account management to give customized access to new users and view their transaction history
- No fee for debit card replacements
- Free incoming wire transfers (domestic only)
- High cash deposit limits. Up to $20,000 free, then 30 cents per every additional $100 deposited
- No fees for up to 500 non-electronic transactions (checks and other deposited items) then 45 cents per transaction
- Free introductory check package with checks, deposit slips, and a free endorsement stamp
The Relationship account has a $29.95 monthly maintenance fee, but the fee is waived if you meet certain account conditions each billing cycle.
Bank of America Business Checking Account: Requirements
You can open a Business Advantage Fundamentals or Relationship account online or in person at a BOA branch.
- Minimum opening deposit of $100
- Business details including your employer identification number (EIN) or Social Security number for sole proprietors, the date the business was established, and business address
- Personal information for anyone else on the application or with at least 25 percent ownership in the company or any controlling manager
- Monthly fee of $16 for Fundamentals or $29.95 for Relationship account. The fee is waived if you meet the minimum balance (Combined average monthly balance of $5,000 for Fundamentals or $15,000 for Relationship.)
Fees will also be waived for either account if you enroll in the Bank of America Preferred Rewards for Business Program
The fee is also waived for Fundamentals accountholders who make $250 or more in qualifying purchases per billing cycle.
Customer Support
Bank of America’s business clients have access to best-in-class customer service via phone, social media, or online chat.
Business clients can call the general bank hotline at 1-888-287-4637 during extended business hours, from 7 a.m. to 11 p.m. EST during weekdays and on Saturdays from 8 a.m. to 8 p.m. EST.
For social media, Facebook direct messaging support is available on weekdays from 8 a.m. to 9 p.m. EST and on Saturdays from 8 a.m. to 5 p.m. EST. Similarly, you can also message the bank on Twitter @BofA_Help.
Through online banking, BOA offers assistance via chat. Mobile banking (app) customers can utilize Bank of America’s virtual assistant, Erica for assistance with various banking services like bill pay, withdrawals, or scheduling an appointment.
Additional Merchant Services Support
Business account customers can also connect with Small Business Specialists or access a library of support articles to answer common questions about business banking and financing.
These in-depth articles offer detailed information for business owners on how to operate or grow their businesses, including special business member offerings.
Preferred Rewards customers can even talk directly to a Merill financial solutions advisor to receive a complimentary financial analysis.
Security
Online banking with Bank of America is extremely secure. BOA uses state-of-the-art encryption to protect your data, and additional protective measures like:
- One-time authorization codes
- Serve authentication
- Data integrity alerts (automatic fraud detection)
Bank of America also offers fraud prevention resources to help small businesses. BOA offers training on common, sophisticated techniques fraudsters use to scam small businesses and red flags to look out for.
The bank keeps your business secure by enabling extra safety features, sending you account access alerts via SMS, establishing a cyber awareness program, and creating a cyber security program including an incidence response plan.
Pros and Cons
As with any financial institution, it’s important to consider the pros and cons of business banking with Bank of America.
Pros
- Convenience. Business accounts can be managed entirely online, and business accountholders can benefit from banking with a one-stop financial institution for small business loans, lines of credit, and business investment account
- Low fees. Monthly fees are quite low or waived for meeting the minimum balance across all eligible BOA accounts. Also, the bank waives fees for stop payments, check images, copies of checks, or statements.
- Free electronic transactions and fee-free incoming domestic wire transfers for Advantage Relationship accountholders.
- High cash deposit limits. Up to $5,000 or $20,000 depending on the account option.
- Easy to manage multiple users. Ability to issue employee debit cards (physical or digital) and set withdrawal limits for ATMs and point-of-sale transactions.
- Bonus features. Additional small business support features, including dedicated small business specialists, and integrations with popular business software apps.
- Preferred Rewards. Preferred Rewards account holders earn bonus rewards, like cash back for payroll services, interest rate discounts for loans, and generous rewards for business credit cards.
Cons
- No free business checking option. You must meet daily balance requirements to avoid fees, which may be challenging for a business in growth mode.
- ATM fees. No reimbursement for out-of-network ATM fees which is $2.50 for non-Bank of America ATMs in the U.S., or $5 for international ATMs. Additionally, there are fees the ATM owner may assess.
- High incidental fees. BOA assesses fees for overdrafts, outgoing wires, incoming international wires, incoming domestic wires (for Fundamental accounts), debit card replacements (for Fundamentals accounts), and checks.
- Related savings products. The Business Advantage Savings account, for business checking accountholders, has a low 0.01% APY and a $10 monthly fee for some business customers that do not meet the minimum balance
- No APY. BOA business checking accounts do not earn any interest.
Alternatives
Beyond Bank of America, there are many other banks and credit union options for you to consider that may offer better client support, fewer fees, or higher APYs.
These fees are not uncommon, and financial institutions that do not charge them often compensate by offering less business support, more limited customer service hours, or no physical store locations.
In short, finding the right bank is a compromise. You will need to assess your priorities when reviewing your options.
For businesses with an average daily balance below $5,000, you may be best off going with a bank that caters to small businesses with limited capital like Lili or Novo.
Frequently Asked Questions
Here are some of the most common FAQs that our readers have as they review their checking account options.
Is Bank of America Good for Business Accounts?
For some businesses, yes. The Bank of America Business Fundamentals Checking account may be a solid option for small business owners who make cash deposits, want the convenience of a full-service bank, and who are able to meet conditions for the monthly service fee to be waived.
How Long Does a Bank of America Business Account Take to Open?
According to the Bank of America, application decisions for new business accounts are often immediate. If additional documents are needed, you have 11 days from the date of request to submit the paperwork.
Once your account is approved, an account holder generally gets their new debit card and any ordered checks within 5 to 7 business days.
Does Bank of America Have Good Reviews?
Among finance experts, Bank of America is very well regarded. It’s a solid option for consumers who want the security and convenience of a large and stable multi-national bank.
Bank of America has plenty of branch locations and ATMs, an outstanding app, free account options (if the minimum balance requirement is met), and a full suite of products to meet your savings, borrowing, and investment needs.
What is the Debit Limit for Bank of America Business?
Business account holders can withdraw up to $700 per day in available (not pending) account funds. For debit card purchases, your daily limit is $1,000.
For these reasons, a business credit card may be a good option. Bank of America offers several fee-free business credit cards that offer cash-back rewards and high spending ceilings.
Do I Need an EIN to Open a Business Bank Account?
In some instances, no, but an EIN is recommended even when it is not required.
Certain business entities require an EIN to open a bank account: partnerships, corporations, limited liability partnerships (LLPs), or limited liability corporations (LLCs) with two or more owners.
Business owners of sole proprietorships or single-member LLCs can typically open a business account with just their Social Security number (SSN) and a driver’s license or other government ID.
Using an EIN is still a good idea as it can protect your personal finances so business assets are not tied to your SSN. It could also make it simpler to get loans and credits for your business, do business with other vendors, and file your business taxes.
Does a Business Bank Account Build Credit?
Opening a business checking account will not impact your personal credit score or your business credit history. Banks do not report checking or savings accounts to the major business credit bureaus.
To build credit history with Dun & Bradstreet, Equifax, and Experian, the three major bureaus for businesses, opening a business credit card or getting a business loan or tradeline would be more beneficial.
As with your personal consumer credit score, it takes time to build good credit for your business.
Is It Worth It?
Bank of America offers financial stability, convenience, and merchant services designed to help businesses of all sizes thrive.
Small business owners, with average account balances of $5,000 to $15,000, should consider the Bank of America Business Advantage Fundamental account. It offers outstanding customer service, overdraft protection, remote deposit options, and helpful software integrations with Zelle, QuickBooks, and ADP.
The Bank of America Business Advantage Relationship account is a step up, with some nice added bells and whistles, and a good option for business owners with bank account balances greater than $15,000.
Either of these accounts is a sound option if you can meet the minimal conditions required to avoid the monthly service fee.
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