Choosing the right business bank account requires careful consideration. Make the wrong choice, and you could be on the hook for much higher fees than anticipated or more complications than necessary. Many people commonly compare the Chase vs. Bank of America Business Checking accounts.
Check out this in-depth review to see how they compare.
Chase vs. Bank of America Business Accounts
Chase and Bank of America are two of the most common business account providers in the U.S., with thousands of in-person branches and online banking opportunities.
When deciding between the two, consider your business model, especially the number of transactions you expect each month, including cash transactions.
Both banks charge monthly maintenance fees but offer ways to waive them, including maintaining a specific minimum monthly balance.
What is the Main Difference Between Chase and Bank of America Business Accounts?
The main difference when choosing between Chase vs. Bank of America Business checking accounts is whether you accept cash or credit cards and if you need a payment processor.
If you operate in cash, Bank of America is a better option, and Chase is better if you have more credit card payments.
However, here are a few more things to consider when comparing Chase vs. Bank of America Business Checking accounts.
Chase Business Checking vs. Bank of America Business Checking
Comparing business bank accounts is a matter of considering these factors:
- Do you prefer to open an account online or in person?
- Are there ample fee-free ATMs nearby?
- Can you meet the requirements to waive the monthly fee?
- How many transactions are you allowed before you pay a per-transaction fee?
As I compare Chase vs. Bank of America, I’ll review Chase’s three bank accounts to Bank of America’s two business banking options.
Bank of America Business Checking
Bank of America Business Checking is great for businesses with a large number of monthly transactions. It’s also great for business owners who can’t keep a high monthly balance, as they offer easy ways to waive the monthly service fee.
Bank of America business checking accounts are ideal for the business owner with many monthly transactions. B of A allows up to 200 – 500 transactions for free before charging a per-transaction fee, which is higher than many other banks.
However, once you exceed the limit, Bank of America’s $0.45 per transaction fee is higher than Chase’s $0.40 fee.
Minimum Deposit Requirement
Like most business bank accounts for small businesses, the minimum opening deposit for Bank of America is low. However, to waive the monthly maintenance fee, you’ll need a much higher balance of $5,000 to $15,000, so the low opening balance might not matter.
Fees and Additional Costs
The monthly service fee for Bank of America is $16 – $29.95. While that’s not a lot by itself, it’s beneficial to find ways to waive it because they have other fees, too, including the following:
- Add a business savings account for $10/month
- Excess transactions over 200 – 500, depending on the account, are $0.45 each, except for debit cards, electronic debits, and mobile deposit checks
- Excess cash deposited with a teller beyond $7,500 – $20,000 is $0.30 per $100 deposited
Waiving a Fee
Choosing a business banking account in which you can waive the fees is important to avoid overpaying. With Bank of America, you have three ways to waive the monthly service fee:
- Maintain a $5,000 – $15,000 balance in all Bank of America business accounts combined
- Spend $250 or more using your Bank of America debit card
- Be a Preferred Rewards for Business member
Bank of America offers other benefits, including:
- Mobile check deposit
- Cash Flow Monitor
- Erika, a virtual financial assistant
- Integration of QuickBooks
- Fraud protection
- Individual access for employees
Chase Business Checking
Chase Business Checking accounts offer credit card processing. This is a unique feature most business bank accounts don’t automatically offer. Chase Business checking accounts may be the better choice if you’re a mobile business or want to collect credit card payments immediately.
However, if you need a large amount of monthly transactions, you may want to look elsewhere, as the Chase limit is low.
Businesses that accept credit cards benefit from Chase business checking accounts. Even the lowest-tier Chase business checking account offers payment processing on the go with Chase QuickAccept®, offering instant access to your funds with QuickAccept®, making it easier to have a more constant cash flow.
Minimum Deposit Requirement
Chase doesn’t require a minimum opening deposit, but like Bank of America, you’ll need a high balance if you want to waive the monthly service fee.
Fees and Additional Costs
The monthly service fee for Chase Business Bank Accounts is $15 – $95. Again, that’s not a lot, but it adds up, especially when you consider the other fees Chase charges, including the following:
- After the first 20 free in-person transactions, there’s a $0.40 per transaction fee
- After the first $5,000 in cash deposits, there is a fee of $2.50 per $1,000 deposited
Waiving a Fee
To avoid the monthly maintenance fee on the Chase Business Complete Banking, you must do one of the following:
- Have a minimum $2,000 daily balance,
- Accept at least $2,000 in deposits from Chase Quick Accept
- Make at least $2,000 in Chase Ink Business credit card purchases
- Link your Chase Private Client checking account
- Online and mobile bill pay
- Mobile deposits
- Chase debit card with chip technology
- Debit and deposit cards are available for employees upon request
- Free Chase business savings account when linked to your business checking account
- Access to more than 4,700 branches and more than 15,000 ATMs
Comparing Basic Business Accounts
Basic business accounts are great for new business owners or any business owner who doesn’t want the hassle of trying to waive high monthly maintenance fees.
If you just opened your business or don’t have a lot of cash deposits, you can eliminate unnecessary fees and still get robust features.
Here’s how the basic Chase vs. Bank of America business checking accounts compare:
1. Chase Complete Banking Account
Chase Complete Banking is great for business owners who want payment processing integrated with their accounts. It automatically comes with the Chase Complete Banking Account.
Keep in mind it isn’t a full-service POS. Instead, you get a QuickAccept® card reader that you attach to your mobile phone, allowing you to accept payments anywhere.
You can deposit up to $5,000 in cash for free and have instant access to any funds collected using QuickCollect.
2. Bank of America Business Advantage Fundamentals Banking Account
The Bank of America Business Advantage Fundamentals Banking Account is a great option, especially if you can’t keep a large balance in your account. You can waive the monthly service fee by spending at least $250 per month with your provided debit card.
Also, if you deposit large amounts of cash, this is a better option than Chase because you can deposit $7,500 in cash before paying a fee for each transaction.
Comparing Mid-Tier Business Checking Accounts
As your business grows and you can keep a larger bank balance, you can enjoy more benefits with the Chase and Bank of America mid-tier business bank accounts.
They have higher balance requirements and fees, but like the basic tiers, there are ways to waive them.
1. Chase Performance Business Checking Account
The Chase Performance Business Checking Account has a $30 monthly fee, and you’ll need a $35,000 combined daily balance to waive it.
Like the Chase basic account, you don’t need a minimum opening balance, and you get unlimited free electronic transactions and incoming wires. You also get 250 free monthly transactions and can deposit up to $20,000 in cash before incurring a per-transaction fee.
You can also link up to 99 sub-accounts for employees.
2. Bank of America Business Advantage Relationship Banking Account
The Bank of America Business Advantage Relationship Account has a $29.95 monthly fee. You’ll need a combined balance of $15,000 in your business bank accounts or become a Preferred Rewards or Business member to waive it.
In addition, you’re eligible for one free business savings account and an additional Business Advantage Relationship Banking account. You’ll also pay no fees on incoming wires or electronic deposits.
If you have a lot of transactions, there is a much higher transaction limit of 500 before you incur a fee.
Comparing Premium Tier Business Checking Accounts
When you’re an established business and looking for more relationship banking services, consider the Chase Platinum Business Checking or Bank of America Preferred Rewards for Business (this is an alternative to a bank account).
1. Chase Platinum Business Checking Account
The Chase Platinum Business Checking account has a hefty $95 monthly fee. You can waive it with a $100,000 daily average balance in combined business accounts, and you’ll get many robust features, including:
- 500 fee-free transactions
- Unlimited electronic transactions
- Up to $25,000 in cash deposits for free
- Free incoming wires
- Four free outgoing wires
- Link up to 99 sub-accounts
2. Bank of America Preferred Rewards for Business Alternative
Bank of America doesn’t have a premium tier account. Instead, they offer Bank of America Preferred Rewards for Business. With this program, you’ll enjoy the following:
- No fees on select banking services
- Bonus rewards on business credit cards
- Higher interest rates on savings accounts
- Lower interest rates on loans
- No ATM fees (including non-network ATMs)
- Professional investment advice
When to Choose Bank of America Business Checking
Bank of America is the optimal choice if you have a large number of monthly transactions. Each of their tiers offers many more monthly transactions than Chase Business checking accounts.
For example, their lowest tier allows 200 free transactions, whereas Chase only allows 20 free transactions.
It is also much easier to waive the Bank of America monthly fee by spending $250+ on your debit card rather than worrying about meeting a daily average balance requirement.
When to Choose Chase Business Checking
A Chase business account is best for businesses that will use payment processing. The basic account includes a payment processing service with Chase QuickAccept®, allowing you to accept credit card payments immediately using your mobile phone.
However, remember that you’ll pay per transaction when you exceed the limit, except for electronic payments, because you get unlimited electronic payments.
Frequently Asked Questions
Is Chase or Bank of America better for transactions and cash deposits?
Bank of America allows a much higher transaction and cash deposit limit. So, if you have a large number of transactions, you’ll pay fewer fees with Bank of America vs. Chase Business checking accounts.
Which bank is better for completing a wire transfer?
Both banks offer free incoming wires starting at the mid-tier level; however, the Bank of America Business Advantage Relationship banking offers unlimited free incoming wires with only a $15,000 minimum balance requirement.
On the other hand, Chase requires a $35,000 daily average balance for the mid-tier account.
If you have a lot of outgoing wires, Chase will save you more money because you get two to four free wires. Bank of America doesn’t offer any free outgoing wires.
Which bank is better for my business, Bank of America or Chase?
The right bank for your business depends on the amount and type of transactions you have. First, compare your options and the potential costs to see which offers the most affordable option.
Start with the requirement to waive the monthly service fee, and then compare your options for the number of transactions you can conduct for free.
What Financial Services Do I Want to Look For With a Business Checking Account?
As you consider your business bank account needs, consider what features you need, such as:
- Online or mobile banking
- Online bill payment services
- Access to employee accounts
- Wire transfer services
- Free debit cards
- Check writing privileges