Kabbage Business Checking
Kabbage business checking is a modern, easy-to-use online account that comes with attractive interest rates and perks.
- No monthly fees
- No minimum balance requirement
- Industry-leading APY
- Cash flow management tools
- No physical banks
- No sign-up bonus
- Fees for outgoing wires
If you’re a small business owner, you already have a lot on your plate. Business banking shouldn’t add to it.
You want a bank that’s reliable, easy to use, and charges low-to-no fees. Enter Kabbage, a modern, easy-to-use business checking account.
With attractive interest rates and perks, Kabbage Checking has become a serious player in the business banking world.
What is Kabbage Business Checking?
Kabbage, Inc. is a fintech company that was founded in 2017 by Kathryn Petralia.
American Express acquired it in 2020, adding to its expanding set of banking services.
In this post, I’ll focus on Kabbage Checking, the platform’s online business checking account.
Between surprisingly high-interest rates and advanced business banking features, Kabbage Checking is a solid option for small business owners.
Kabbage Checking Features
For starters, let’s go over its most prominent features.
Kabbage Checking pays 1.10% Annual Percentage Yield (APY) on balances up to $100,000.
This is a huge interest rate for any bank account, let alone business checking accounts, which aren’t typically interest-bearing.
Kabbage is an entirely online platform, so you can take care of everything from bill pay to account maintenance from the website or app.
Kabbage doesn’t come with any brick-and-mortar bank locations, so if you need a hand with your account, you’ll have to utilize the online help center.
Kabbage Mobile App
The Kabbage mobile banking app allows you to make mobile check deposits and manage your account on the go.
On top of your checking account, the app also gives you access to Kabbage’s Funding and Payments products.
The app is extremely well-liked by iOS users, with an impressive 4.9-star (out of 5) rating in the App Store.
It’s also available on Android and has a 4.1-star rating (out of 5) in the Google Play Store, though that rating is based on somewhat limited reviews.
19,000 Free ATMs
Kabbage Checking offers free ATM access with a network of more than 19,000 US ATMs. You can easily find one near you with the mobile app and grab cash with your Kabbage debit card.
If you have to use an out-of-network ATM, you’ll have to pay whatever ATM fees that are charged, but Kabbage doesn’t tack on any fees of its own.
If you have a business that deals heavily in cash, you’ll be happy to hear that despite its status as a digital account, Kabbage Checking allows for cash deposits.
Kabbage offers cash deposits at more than 90,000 participating retailers. You can deposit up to $5,000 in cash per day, and you can easily find a nearby location on the mobile app.
The downside is that a cash deposit will always come with a fee of up to $4.95 per transaction.
Kabbage Insights is an intuitive cash flow management tool that comes included with all accounts.
By analyzing your transactional data, Kabbage Insights provides a look at historical, current, and future trends to help you better understand your business’s cash position.
You can connect your Kabbage accounts with Insights as soon as you open one.
Kabbage is working on integrating with platforms like QuickBooks, but that’s still under development.
Reserves is a feature within the Kabbage checking account that acts as a business savings account.
Basically, Reserves is an organizational tool that lets you break up your deposited funds for specific goals or expenses.
Kabbage customers can have up to five different reserves, which all earn the same high APY.
Think of Reserves as a place to store your business’s emergency fund or extra cash on hand that you don’t want to spend.
Then, whenever you need access to it, you can instantly transfer your Reserves funds over to your business checking account.
Kabbage Funding acts as a small business lender to account holders. You can apply for a line of credit between $1,000 and $150,000, and you can flexibly access those funds whenever you need to.
There’s no fee for the online application, and rather than dealing with a fluctuating interest rate, you’ll pay a monthly fee for your credit line whenever you have an outstanding balance.
While I typically advise against taking out loans to fund your business, Kabbage Funding could be a good option if you don’t have a choice.
Kabbage Payments help you keep all of your payment processing in one place.
The tool allows you to send out professional invoices and custom links so that you can receive payments online.
Next-day deposits are available on eligible transactions. But there’s a catch. You’ll have to pay a 2.25% fee for each one.
With that in mind, I recommend requesting ACH payments whenever possible.
Like any online account worth its weight, Kabbage Checking mostly stays away from pesky bank fees.
There’s no monthly maintenance fee or minimum balance requirement, and you won’t be able to overdraft your account.
This doesn’t mean that there are no fees at all. Here’s a look at the sparse fee table that you’ll see with your Kabbage Checking account.
- Cash Deposit Fee: Up to $4.95
- Teller Cash Withdrawal Fee: $3
- Foreign Transaction Fee: 3% of the transaction
- Outgoing Domestic Wire Transfer Fee: $25
- Paper Check Fee: $20 for 100-pack, $125 for 250-pack
If you’re ready to get started with an account, you can head to www.kabbage.com to get started.
The online application is quick and simple, and you just have to come prepared with a routing number for funding as well as some details about your business.
If you’re already an Amex member, you can apply for a Kabbage account right through your Amex login.
As promotions run with Kabbage, you can find them here:
|Kabbage Kabbage Checking™||$300||December 15, 2021||
One of the benefits of being owned by a massive financial company by Amex is that resources aren’t a problem.
With this in mind, Kabbage comes with the assurance that your information and money are safe and protected.
Here are just a few of the measures that it has in place to keep your account secure:
- 128-bit data encryption
- Physical access controls to data centers
- Read-only access to external accounts
Kabbage’s customer service hours are 8 am to 9 pm Eastern Time on weekdays, and 10 am to 6 pm on weekends.
If it’s outside those hours or you don’t need an answer right away, you can opt to send an email which should get a response within 24 hours.
Kabbage also has a ton of FAQs on its site, plus a resource center full of small business banking articles.
Overall, Kabbage has a solid reputation when it comes to customer service, with a 3.8-star rating on Trustpilot.
Pros & Cons
- No monthly fees or minimum balance requirements
- Industry-leading APY
- Top-rated iOS app
- Cash flow management tools
- No physical banks
- No sign-up bonus
- Fees for outgoing wires and foreign transactions
Alternatives to Kabbage Checking
Novo is an all-in-one business banking platform. It’s completely digital, and you can apply for an account online in just a few minutes.
Novo has no hidden fees and adds value through a wide variety of integrations with software like QuickBooks, Shopify, Stripe, and more.
Chase Business Complete Checking
Chase Business Complete is one of the best business checking accounts from a traditional bank.
There’s a $15 monthly fee for the account, but you can easily get around it with a minimum balance requirement of $2,000.
Business Complete comes with online and mobile banks, bill pay, and Chase’s QuickAccept payment platform.
BlueVine is another modern, digital business bank account that comes with a 1.0% APY on balances up to $100,000.
There are no monthly fees on BlueVine, and you get two free checkbooks when you sign up for an account.
Like Kabbage, BlueVine also offers credit lines and a payment processor on top of its checking features.
Is Kabbage Checking FDIC-insured?
How long does Kabbage take to deposit funds?
If you make a deposit before 5 pm Eastern Time, your deposit will show up the next business day. If it’s after 5 pm, you’ll have to wait up to two business days.
What’s the difference between business checking and personal checking?
They’re similar, but the biggest difference is that business checking accounts come with tools geared toward running a small business, like payment processing and cash flow management.
Can I use my checking account as a business account?
You could, in theory, but the financial services provided by it might not line up with what you need from a business checking account.
A business checking account isn’t required, but trust me — it makes your life easier.
Is Kabbage Checking Right For You?
Whether you’re just getting going with a startup or looking for a new banking partner for your established business, Kabbage Checking is an intriguing option.
The big selling point is its APY, which is way ahead of most competitors. Plus, you get automated financial tools, helpful insights, and an easy-to-use online banking platform.
The only real downsides of Kabbage are the same ones that reflect digital banking as a whole — you won’t have in-person support or a wide variety of complementary accounts, and unfortunately, there’s no sign-up bonus.
The bottom line is that Kabbage is worth checking out if you’re looking for an online bank that also lets you deposit cash.
Now that you know all about Kabbage, the next step is either signing up or looking for a more suitable alternative for your business.
And remember, no matter which bank you go with, make sure it helps your business move forward and doesn’t charge annoying fees. Good luck!