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. So, if you are comparing Chase vs Bank of America Business Checking Accounts, this in-depth review will help you settle the debate for your business.
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 branches for in-person or online banking.
When deciding between the two, you should consider your business model, especially the number of transactions you expect each month, including cash transactions. For example, Chase Bank significantly limits the number of free transactions you get each month, whereas Bank of America allows many more.
However, Chase doesn’t have a minimum opening balance requirement, and they offer integrated payment processing for free, along with an unlimited number of electronic transactions.
Here are a few more things to consider when comparing Chase vs. Bank of America Business Checking.
Chase Business Checking vs. Bank of America Business Checking
Comparing business bank accounts is a matter of considering these factors:
- How will you open the account? Will you open it online, or do you prefer in-person banking?
- How local are the fee-free ATMs for the bank you’re choosing?
- How much is the monthly service fee, and will you meet the requirements to waive it?
- 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 many 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 is ideal for the business owner with many monthly transactions. B of A allows up to 200 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 per transaction fee is higher than Chase’s at $0.45 versus 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 at only $100, but to waive the monthly maintenance fee, you’ll need a much higher balance, so the low balance might not matter.
Fees and Additional Costs
The monthly service fee for Bank of America is $16. 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 beyond 200 are $0.45 each, except for debit cards, electronic debits, and mobile deposit checks
- Excess cash deposited with a teller beyond $7,500 is $0.30 per $100 deposited
Waiving a Fee
Choosing a business banking account on which you can waive the fees is important to avoid paying too much. With Bank of America, you have three ways to waive the monthly service fee:
- Maintain a $5,000 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:
- Cash Flow Monitor
- Erika, a virtual financial assistant
- Integration of QuickBooks
- Fraud protection
- Individual access for employees
Chase Business Checking
Chase Business Checking offers a unique feature most business bank accounts don’t automatically offer, and that’s credit card processing. So if you’re a mobile business or want to collect credit card payments immediately, the Chase Business checking option may be the better choice.
Just make sure you don’t need a lot of teller transactions, as the amount allowed is very low.
Businesses that accept credit cards may prefer the Chase Business Checking account because even the basic account includes payment processing on the go with Chase QuickAccept. You’ll even get immediate 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 the Chase Business Bank Account is $15. 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 fee of $0.40 per transaction
- 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, 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
- Have proof of military status
- Online and mobile bill pay
- Mobile deposits
- Chase debit card
- Debit and deposit cards available for employees
- Free Chase business savings account when linked to your business checking account
- Access to 4,700 branches and 16,000 ATMs
Compare today’s business checking account promotions!
Comparing Basic Business Accounts
Basic tier accounts are great for those starting their business or business owners who don’t have a lot of money to open an account. If you have limited transactions, especially cash deposits, you can save on fees and enjoy these lucrative options.
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. Now, this isn’t a full-blown POS; instead, it’s a QuickAccept card reader 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.
Earn up to $500
for opening a Chase Business Complete Banking℠ account
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. With your included debit card, you can waive the monthly service fee by spending at least $250 per month. For most businesses, that’s not hard to do.
Also, if you deposit a lot of cash, this is a better option than Chase because you can deposit $7,500 in cash before paying a fee for each transaction.
The main difference between the two is – do you accept more cash, or do your customers pay via credit card, and do you need a payment processor? If you operate in cash, Bank of America is a better option, and if you have more credit card payments, Chase is better.
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 accounts. They have higher balance requirements and fees, but like the basic tiers, there are ways to waive the fees.
1. Chase Performance Business Checking Account
As I said, these accounts have a higher fee, as demonstrated by Chase, with its $30 monthly maintenance fee. With Chase Performance, you’ll need a combined balance of $35,000 to waive the fee.
Like the Chase basic account, you don’t need a minimum opening balance, and you get unlimited free electronic transactions. With this mid-tier account, you get 250 free transactions and can deposit up to $20,000 in cash before incurring a per-transaction fee.
You can also link up to 99 subaccounts for employees.
Along with free unlimited electronic transactions, Chase Performance Business Checking account customers get unlimited incoming wires, which can create significant savings.
2. Bank of America Business Advantage Relationship Banking Account
The Bank of America Business Advantage Account has a $29.95 monthly fee. To waive it, you’ll need a combined balance of $15,000 in your business bank accounts or become a Preferred Rewards or Business member.
In addition, you’ll get a free business savings account, an additional Business Advantage Relationship Banking account, and pay no fees on incoming wires or electronic deposits.
One nice thing, if you have a lot of transactions, is the 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 $100,000 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
- No fees for using ATMs out of network
- Link up to 99 subaccounts
- Free savings account
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
- Professional investment advice
When to Choose Bank of America Business Checking:
Bank of America is the way to go if you have a lot of monthly transactions. Each of their tiers offers many more transactions per month. 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, 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 lot of transactions, you’ll pay fewer fees with Bank of America vs Chase.
Which bank is better for completing a wire transfer?
Bank of America’s mid-tier is the better option if you’re accepting incoming wires. Both banks allow unlimited free incoming wires at the mid-tier level, but you’ll need a minimum balance of $35,000 at Chase and only $15,000 at Bank of America.
If you have many outgoing wires, Chase is the better option, but you’ll only get two or four free wires, depending on the account. Bank of America accounts don’t offer 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