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Business Fundamentals Checking and Business Advantage Checking are two types of business checking accounts offered by Bank of America. Total Business Checking, Performance Business Checking, and Platinum Business Checking are the three accounts offered by Chase. Each account has a separate monthly free transaction and cash deposit limit. The best account for your company is usually determined by the number of monthly transactions and cash deposits it makes.
We’ve put up a list of questions to assist you to decide which of these five small business checking accounts is right for you. These questions will lead to a bespoke response that is tailored to your exact monthly requirements.
When Should You Use Which Account Type?
Different degrees, or tiers, of business bank accounts, are routinely offered by major banks. Each account tier is designed to meet certain company demands, such as the number of free transactions or monthly cash deposits. Basic and midtier accounts are available from both Bank of America and Chase. Chase, on the other hand, provides a premium account, whilst Bank of America does not.
To make an educated selection while picking an account, familiarize yourself with each tier:
- Basic account: Best for up to 250 monthly transactions and up to $7,500 in cash deposits.
- Midtier account: For fewer than 500 monthly transactions and cash deposits up to $20,000, this is the best option.
- Premium account: For up to 500 monthly transactions and cash deposits of up to $25,000, this account is the best option.
Basic Checking Accounts: Bank of America vs. Chase
The most basic business accounts offered by Bank of America and Chase are the Business Fundamentals Checking account and Chase Total Business Checking account. These accounts are for small companies that want a low-cost checking account with a monthly charge that is simple to waive.
Basic Account Comparison: Bank of America vs. Chase
Takeaway:
Both Bank of America and Chase offer basic business checking accounts with free monthly transactions, no fees for cash deposits, and a sign-up incentive. While Bank of America provides more free monthly transactions and cash deposits, it does so at the expense of Chase. Furthermore, Bank of America’s first bonus is $150 higher than Chase’s, but it comes with extra criteria.
If pricing isn’t your main issue and you’re more concerned with convenience, Chase offers approximately 4,900 locations, compared to Bank of America’s 4,300. Both banks, however, have the same number of ATMs countrywide (16,000). A branch location and ATM are essential for firms that handle daily cash transactions and need to make cash deposits.
Basic Account Fees: Bank of America vs. Chase Bank
Takeaway:
When it comes to cost comparisons, Bank of America and Chase’s business accounts are neck and neck. Chase not only charges a potentially cheaper monthly cost, but it also makes waiving that fee easy. In contrast to Bank of America’s $3,000 requirement, it simply needs a minimum daily balance of $1,500 to avoid the charge.
Transaction and cash deposit costs may be more important to certain company owners than monthly fees. With that in mind, Bank of America takes the lead in transaction fees, with 200 free monthly transactions compared to 100 for Chase. Plus, you may deposit more cash every month with Bank of America at no extra cost. Chase, on the other hand, charges a lower cost for cash deposits beyond the monthly limit than Bank of America.
While you might establish a midtier account to have access to additional free monthly transactions or cash deposits, you may not require the extra transactions. If you don’t want to upgrade to a midtier account but expect to make more transactions and deposits than the monthly limit, use the calculator below to see which account is the most cost-effective.
Note: The $16 monthly fee for the Bank of America Business Fundamentals Checking account is used in this calculation.
Midtier Accounts: Bank of America vs. Chase
The Bank of America Business Advantage Checking account and the Chase Performance Business Checking account are mid-tier accounts, respectively. These accounts are designed for companies that need to handle more than 200 transactions per month and up to $20,000 in cash deposits per month.
Midtier Account Comparison: Bank of America vs. Chase
Takeaway:
Owners of midtier business accounts from Bank of America and Chase may take advantage of free monthly transactions, cash deposits, and even a waived monthly charge. Bank of America’s midtier account, on the other hand, outperforms Chase’s by providing 250 more free monthly transactions. To get the same number of free transactions from Chase, you’ll need to sign up for their premium account, which costs $95 a month.
Another factor to think about when selecting the ideal business account for you is the bank’s network and local ATMs. Both banks have a large number of physical branches and ATMs around the country. However, if you reside or run a company in an area where one of the bank’s branches or ATMs isn’t convenient, it’s advisable to use the other account.
Midtier Account Fees: Bank of America vs. Chase
Takeaway:
Both Bank of America and Chase provide free monthly transactions and cash deposits with their mid-tier accounts, but Bank of America seems to have the upper hand in terms of cost. When compared to Chase, Bank of America’s conditions for waiving the monthly cost are simpler to complete, and Bank of America charges a monthly account fee that is 5 cents less.
You’ll also get up to 500 free monthly transactions with the Bank of America Business Advantage Checking account, compared to 250 with the Chase Business Advantage Checking account. If you need to conduct more than 250 transactions each month, Bank of America’s midtier business account is the way to go. Regardless of whatever bank you pick, you’ll get $20,000 in fee-free monthly cash deposits.
If transaction and cash deposit fees are your top priorities, estimate your monthly spending and compare the costs of the two accounts side by side.
Platinum Business Checking (Chase)
While Bank of America only provides business checking accounts in the mid-tiers, Chase Bank offers a higher-level account. Chase clients may create a Chase Platinum Business Checking account, which is designed for bigger companies that need a substantial monthly transaction and deposit limit.
Overview of the Chase Platinum Business Checking Account
Takeaway:
When compared to the others in this post, this account will benefit larger firms that deal with a lot of cash on a regular basis. You’ll be able to deposit up to $25,000 every month without incurring any extra fees. Among all Chase and Bank of America business checking accounts, this account offers the freest monthly cash deposits.
You’ll also have access to almost 4,900 branches and 16,000 ATMs around the country. The cash deposit procedure will be straightforward and easy with this degree of access to physical branches. Before you create an account, make sure your company is close to a branch and an ATM.
Costs of a Chase Platinum Business Checking Account
Takeaway:
Although the Chase Platinum Business Checking account has the highest monthly account cost among the Chase and Bank of America business checking accounts, it is well worth it due to its features. You’ll be able to make up to 500 free transactions per month and $25,000 in free cash deposits each month. While Bank of America’s midtier account provides the same amount of free transactions, it only allows for a total of $20,000 in free transactions every month.
The Chase Platinum Business Checking account is the perfect choice for you if you need to deposit more than $20,000 in cash per month and handle up to 500 transactions. Consider creating a Bank of America Business Advantage Checking account if you only need to deposit up to $20,000 in cash per month and conduct up to 500 transactions.
It’s important to know how much you’ll spend out of pocket to possess this Chase premium business checking account if you need to deposit more than $25,000 per month and/or conduct more than 500 transactions per month.
Conclusion
Bank of America provides two business accounts, whereas Chase offers three, making it a tough option to make. However, each account has a separate monthly transaction and cash deposit limit. The ideal account for you is typically the one that fits your individual transaction and deposit demands.
