As a small business owner, nothing is worse than getting pulled down an accounting rabbit hole when you have customers to serve. This is why so many entrepreneurs use accounting tools like QuickBooks to manage invoices and business-related expenses.
But did you know that QuickBooks also offers digital bank accounts?
In this article, you’ll get a full understanding of how QuickBooks Checking (formerly known as Quickbooks Cash) works, how it can help your small business and more.
QuickBooks Checking: Meet the Man Behind the Tech
Our mission at BankBonus is to help you find the best bank for your needs, and we think meeting the people behind the tech can help. Listen to the interview now!
BankBonus Podcast
Interview with Rob Daniel
In this episode, Grant Sabatier chats with Rob Daniel, the Director of Product at Intuit.
Hear how Quickbooks Checking leverages the accounting and bookkeeping expertise of Intuit while bringing faster transactions, transparency into your business and cash flow, and actionable recommendations to help small business owners make smarter decisions. Rob also provides insight into the platform’s features and future direction.
What is QuickBooks Checking?
You’ve probably heard of QuickBooks, the powerhouse bookkeeping software owned by Intuit, Inc. QuickBooks Checking is the company’s no-fee, high-yield business checking account that integrates with QuickBooks Online (QBO).
It comes with standard checking account features like a debit card and ATM access, along with standard QuickBooks features (e.g., accounting, invoicing, and payment processing).
QuickBooks Checking Features
Let’s take a look at how it works.
QuickBooks Integration
For most business owners, the main appeal of QuickBooks is going to be its integration with QuickBooks Online.
If you’re already a QuickBooks customer, you can enjoy the convenience of keeping your bank account, bookkeeping, and cash flow reporting all in one place.
For example, when customers pay you through QuickBooks Payments, your balance automatically syncs with your accounting records, so you don’t have to categorize or update transactions manually.
Similarly, all of your debit card or bill pay transactions will automatically populate to your QuickBooks dashboard.
It’s important to note that you’ll need to sign up for both QuickBooks Online and QuickBooks Payments to open a Quickbooks Checking account. All three services work in unison.
1.00% Annual Percentage Yield (APY)
At 1.00%, Quickbooks Checking offers an APY that’s well above the average rate for business bank accounts, especially when compared to other free accounts.
Traditional brick-and-mortar banks can’t even come remotely close to this rate. The high-yield interest rate applies to all balances, so you won’t have to worry about hitting a certain balance threshold or missing out on higher balances.
19,000+ Free ATMs
Quickbooks Checking is a member of the Allpoint ATM network, which means that you can use your QuickBooks debit card to withdraw cash at more than 19,000 fee-free ATMs. There’s a $3 fee for using an out-of-network ATM, plus any additional fees that the machine may charge.
Free Instant Deposits
Instant Deposit is an add-on service offered within QuickBooks Payments. With a Quickbooks Checking account, you’ll get it for free.
As you might have guessed, Instant Deposit is a service that enables incoming funds to hit your account immediately rather than waiting the standard few business days.
So no matter when you make deposits, even at night or on weekends, you’ll see the deposit show up within 30 minutes.
The downside of Quickbooks Checking deposits is that your options are relatively limited — at the moment, Quickbooks Checking does not support check deposits or wire transfers.
QuickBooks Envelopes
QuickBooks Envelopes are savings buckets that help you organize your money for different expenses. You can create up to 10 Envelopes within your account, so whether you’re putting money aside for payroll or an eventual expansion, you have a specific place to store it.
Additionally, each Envelope still earns interest at the same rate as the rest of your account. In order to spend funds within an Envelope, you’ll first have to transfer them back to your main account. This way, you won’t accidentally spend money that was intended for a specific expense.
Cash Flow Forecasting
A healthy cash flow is a critical component to the success of any small business or entrepreneur. To that end, Quickbooks Checking comes with a built-in cash flow planner that helps paint a picture of where you’re finances are going.
The tool uses machine learning to automatically forecast money-in and money-out based on the activity in your Cash and QuickBooks Online accounts. As a result, you can explore cash flow projections from 30 and 90 days out, which can help you budget accordingly for the short and long term.
Other QuickBooks Products
QuickBooks Online
QuickBooks Online (QBO) is a digital accounting platform with over 4 million customers. You’ll need to subscribe to QuickBooks Online to open a Quickbooks Checking account. Unfortunately, there’s no free version of QBO.
There are four tiers of the platform: Simple Start, Essentials, Plus, and Advanced. So, whether you just opened a new business or you’re a seasoned pro, you should be able to find one with the correct level of functionality.
QuickBooks Payments
Just like QuickBooks Online, you won’t be able to open a Quickbooks Checking account unless you sign up for QuickBooks Payments.
With Payments, you can create invoices and receive payments through ACH transfers, eChecks, debit and credit cards, and linked e-commerce platforms.
I'm not the biggest fan of the fact that QuickBooks Payments is required because it charges transaction fees when you send and receive money. If you want to avoid fees, this isn't a direction you'll want to go in. There is an option to use a separate bank for payments, but then you have to deal with managing several accounts.
Money by QuickBooks
Money by QuickBooks is the company’s online-only business bank account. Overall, Cash and Money are similar, but there are a few key differences:
- Money APP: For starters, Money operates on its own app that’s separate from other QuickBooks products.
- No QB Subscription Needed: Money is also available without any other connection to QuickBooks, meaning that you won’t need an Online or Payments subscription to open one.
- No APY on Deposits: No option to earn APY on deposits.
- No Account Integration: You won’t be able to integrate your QuickBooks Online account. In fact, there’s no way to connect or share data between the two accounts at the moment.
- Free Account: The good news is that Money is truly free. There’s no monthly service fee, and you don’t need to pay for a QuickBooks Online account if you don’t want one.
When you consider the benefits of Quickbooks Checking, Money only seems to make sense if you don’t need a QuickBooks Online account.
Fees
Quickbooks Checking seems like a completely free account on the surface — there are:
- no monthly service fees
- no minimum balance requirements
- no overdraft fees
- no transfers fees
But as the saying goes, there’s no such thing as a free falafel sandwich. (Yes, I just made that up).
To understand the true cost of a Quickbooks Checking account, here are some fees that you might run into.
QuickBooks Online Fees
The most expensive aspect of a Quickbooks Checking account is the cost of your QuickBooks Online membership. If you’re already paying for one, then it’s no big deal. But, if you’re new to QuickBooks, it might make the account a little less attractive.
QuickBooks Pricing Per Account Tier:
- Self-Employed: $15 per month
- Simple Start: $30 per month
- Essentials: $55 per month
- Plus: $85 per month
- Advanced: $200 per month
As you can see, QuickBooks online comes with a cost.
Transaction Fees
You’ll also pay a fee for any incoming transactions through QuickBooks Payments, which isn’t ideal. The fee amount depends on the type of transaction.
Transaction Fees:
- ACH Payments: 1% fee
- Keyed Payments: 3.4% fee
- Invoiced Payments: 2.9% fee
- Card Reader Payments: 2.4% fee
ATM Fees
Quickbooks Checking limits users to four free in-network ATM withdrawals per month. After that, it’ll cost $3 per transaction. The same $3 fee applies to any out-of-network withdrawals, plus whatever the ATM charges.
Foreign Transaction Fees
If you use your debit card abroad, you’ll pay a fee equal to 3% of the total transaction amount. This includes purchases and ATM withdrawals.
Getting Started
When you’re ready to sign up for a Quickbooks Checking account, head to the website and log in to QuickBooks Online.
The account is open to anyone 18 or older with an active QuickBooks Online account and a registered US business. You’ll need your: Social Security Number and a valid driver’s license, state ID, or passport when you apply.
QuickBooks Checking
Bottom Line
QuickBooks Checking eliminates the need for you to manually update your business transactions by integrating with your current QuickBooks Online account. When you consider the added convenience, plus 1.00% APY earning, QuickBooks Cash makes a lot of sense, particularly for current QBO users.
Pros
- Very Attractive APY
- Seamless QBO integration
- No Service Fees within QuickBooks Checking
Cons
- Limited Customer Support
- No Check Deposits or Wire Transfers
- QuickBooks Online and Payments are Mandatory
Promotions
There’s no bonus offer after account opening for Quickbooks Checking, but there is an opportunity to save if you aren’t using QuickBooks Online yet.
When you sign up for a QBO subscription, you can opt for either a free first month or 50% off your first three months.
Considering the cost of the service as a whole, this is equal to a discount of up to $270 if you enroll in Advanced. With that said, the majority of users will be fine with a Simple Start account.
Security
Intuit utilizes leading-edge multi-factor authentication and anti-fraud technology to keep accounts secure.
All sensitive data is protected by AES 256-bit encryption, and you’ll be notified if there is any suspicion of unauthorized account access.
Quickbooks Checking accounts are protected by FDIC Insurance through Green Dot Bank, so your deposits are protected up to the industry standard of $250,000.
Customer Support
Quickbooks Checking has been available since mid-2020. Since its launch, customer support has been a struggle for some customers.
While Intuit and QuickBooks have a wide range of customer service options like live chat and 24/7 phone assistance, some users are frustrated that tailored customer support isn’t available yet for Quickbooks Checking.
Unfortunately, this might be a trend, with Inuit’s Trustpilot rating of just 1.2/5 stars.
Pros & Cons
Pros:
- No service fees within Quickbooks Checking
- Very attractive APY
- Seamless QBO integration
Cons:
- No check deposits or wire transfers
- QuickBooks Online and Payments are mandatory
- Limited customer support
Alternatives to Quickbooks Checking
Next, let’s review some of the top alternatives to Quickbooks Checking so you can see what else is out there.
NorthOne
NorthOne is an online-only business banking platform. The account comes with mobile ACH and wire transfers, savings Envelopes, and intuitive revenue and spending insights. NorthOne is also compatible with several business apps, including QuickBooks, Shopify, and Venmo.
Novo
Novo is an all-in-one business banking service. It’s tailored for small business owners, entrepreneurs, and freelancers, and a Novo account takes less than 10 minutes to set up. The account is fee-free, and you won’t pay a thing for transfers, mailed checks, or incoming wires. Novo also reimburses all ATM fees, and members get access to a ton of discounts on business software (including QuickBooks Online).
Bluevine
Bluevine’s Business Checking account is fee-free and, like Quickbooks Checking, is one of the few business accounts with a truly high-yield APY. With Bluevine, you’ll earn 1.00% on the first $100,000 in your account. The account has unlimited transactions and no minimum balance requirements, and you can easily stay on top of the financial side of your business with its easy-to-use dashboard.
Frequently Asked Questions
What is a Quickbooks checking account?
Quickbooks Checking is a digital business checking account that seamlessly connects with QuickBooks Online and QuickBooks Payments — allowing for an all-in-one small business banking solution.
What bank does QuickBooks Checking use?
Green Dot Bank. QuickBooks is not a bank. Banking products and services are provided by their partner, Green Dot Bank.
Is QuickBooks Checking account FDIC insured?
Yes, the QuickBooks checking account is provided by Green Dot Bank, an FDIC member.
How much does Quickbooks Checking cost?
Quickbooks Checking doesn’t cost anything by itself. However, since QuickBooks Online is a requirement, you’ll ultimately have to shell out $15 – $200 per month for that service.
Is Quickbooks Checking Right For You?
At its best, Quickbooks Checking can save time and earn you some extra money on your deposits. The account’s QuickBooks Online integration makes it easy to manage your business’s finances all in one place. It also eliminates the need for you to manually update your business transactions.
When you consider the added convenience, plus 1.00% APY earning, Quickbooks Checking makes a lot of cents, particularly for current QBO users.
With all of that said, there are still a couple of things to consider. Quickbooks Checking is still fairly new, so its overall functionality and customer support quality has some room for improvement.
Also, the monthly subscription fee for QBO might feel a bit pricey for some — especially if you don’t really need robust accounting software.
Whichever route you choose, make sure your business bank account isn’t nickel and diming you. If QBO’s services and fees are worth it to you, by all means, give it a go.
