The world of business banking can be overwhelming, but with the right information, you can find out which type of bank account best fits your business needs. We want to make your business banking journey as smooth as possible, which is why we’ve broken down the difference between three of the major account options: checking, savings, and money market.

Business checking accounts

A business checking account functions similarly as a personal checking account. You can deposit, withdraw, and transfer money with ease. You can also manage your account online and use a card for ATM withdrawals. Compared to a business savings account, a business checking account gives you more flexibility when it comes to accessing your money. Therefore, it’s a great place to keep the funds that you need to cover your business expenses on a day-to-day basis.

One major difference between personal and business checking accounts is transaction limits. Usually, a personal account will allow unlimited transactions. However, business checking accounts usually limit your monthly transactions or have a fee over certain limits.  When comparing your account options, make sure you choose one that offers enough free transactions for your business needs.

Just like personal checking accounts, some business checking accounts are free while others charge monthly service fees. Some accounts have balance requirements, and others can even earn interest. Interest-bearing business checking accounts are rare, and you won’t find them at all banks. At Bank 34, our Business Interest, Basic Non-Profit, and 501c Non-Profit Checking accounts all earn interest once a given account balance is reached.

We strive to ensure that we offer solutions compatible with businesses both big and small. Our full suite of business checking account options include:

Account Type Description 
Small Business Checking Simple account with a low balance requirement to avoid a monthly service fee and for predictable, lower level of transactions each month.

This account does not earn interest.

Business Analysis Checking Account with an earnings credit based on positive average balance1 to offset service and activity fees.

 

This account does not earn interest.

Business Interest Checking Interest earning account for profit-based companies with a balance requirement to earn interest and avoid a monthly service fee.

 

This account has tiered rates and starts to earn interest with a $5,000 balance1.

Basic Non-Profit Checking Account for non-profits that do not have 501c designation (e.g., associations and clubs) with a nominal monthly service fee and a balance requirement to earn interest.

This account has tiered rates and starts to earn interest with a $1,000 balance1.

501c Non-Profit Checking Account for non-profits with 501c designation with a balance requirement to earn interest and a monthly service fee that can be waived with low transaction activity of deposits and debits.

This account has tiered rates and starts to earn interest with a $1,000 balance1.

Business saving accounts

It’s always a good idea to set aside some money for a rainy day, and a business savings account can help you do just that for your business. These accounts are ideal for operating profits and other funds that you don’t plan on using or needing to use in the near future. Unlike business checking accounts, which rarely earn interest, business savings accounts allow you to earn a competitive interest rate on your savings, so that your money can grow over time. Bank 34’s Business Savings account begins to earn interest once the account has a balance of $1001.

Historically, federal regulation has limited business savings accounts to six transactions per month. This included both deposits and withdrawals. However, this changed in April of 2020, when the Federal Reserve Board announced changes to Regulation D. Now, instead of being limited to six transactions per month, you can make more transactions with business savings accounts. However, banks are still free to charge fees on what they deem to be excess withdrawals from these accounts, and some are still adhering to the six transaction rule.

 

Money market accounts

In a lot of ways, a business money market account is a mix of both a business savings and checking account. You can deposit funds and earn interest over time, but also access your money with an ATM card and check writing abilities. Bank 34’s Business Money Market and Business Private Money Market accounts offer unlimited withdrawals made in person, online, by mail, or at an ATM.

Previously, money market account withdrawals were limited to six per month under the same Regulation D as discussed above. Now, there is no federal limit on monthly withdrawals from money market accounts, but some banks may still impose their own limits.

Bank 34 offers two Business Money Market account options for customers who would like to earn interest on their money but also enjoy the convenience of accessing it when needed.

Account Type Description
Business Money Market Account to earn interest with a balance requirement and avoid a monthly service fee, have cash on hand and some check writing ability.

This account has tiered rates and starts to earn interest with a $1,000 balance1.

Business Private Money Market Account to earn premium interest with a higher balance requirement and avoid a monthly service fee, have cash on hand, and some check writing ability.

This account has tiered rates and starts to earn interest with a $1,000 balance1.

Explore business banking solutions at Bank 34

We understand you face many challenges as a business owner, and we believe managing your money shouldn’t be one of them. From securing a loan to opening a checking account, managing merchant capture, and everything in between, we work to ensure that you can easily manage your money anytime, anywhere. Visit one of our branch locations or explore our business banking solutions online.

 

DISCLOSURE: 

MEMBER FDIC. IR=Interest Rate / APY = Annual Percentage Yield. Rates and rewards are variable and may change after account is opened. Fees may reduce earnings.  Account approval, conditions, qualifications, limits, timeframes, enrollments, and other requirements apply.  Contact one of our bank service representatives for current rates, additional information, details, restrictions, processing limitations and enrollment instructions.

1 ADDITIONAL BUSINESS ACCOUNTS DISCLOSURE:  IR/APY will compound daily and credit monthly.  Balance refers to average of the actual balance in the account during this cycle.

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