Everything You Need To Know About a Bank of America Business Account

Bank of America (BoA) is a top financial institution serving individual consumers, small and middle-sized businesses, and large corporations. It offers banking, investment, asset management, and risk management options.

A Bank of America business account is essential to manage your company’s finances. With over 3 million business customers, Bank of America is a reliable bank with services across the United States and other countries.

Is BoA Good for Small Businesses?

Bank of America is a good option for small and large businesses. It offers two different types of business checking accounts.

  • Business Advantage Fundamentals Checking: This account is ideal for small businesses spending a minimum of $250 on their debit or credit card with BoA, with an average monthly balance under $5,000. For example, if you’re starting out as a freelance writer, this may be enough for you.
  • Business Advantage Relationship Checking: This account is perfect for businesses spending at least $2,500 a month on their debit or credit card, with an average monthly balance of more than $15,000. For example, once your writing business has taken off, you have to pay employees and have lots of revenue coming in, it may be time to upgrade to this account.

A Bank of America business account includes access to various tools and services, and can be accessed via online and mobile banking. An easy-to-use mobile app is also available for banking anywhere, anytime.

Business Advantage Fundamentals vs. Relationship Checking Accounts

Fundamentals Business Account Relationship Business Account
200 fee-free transactions

  • After the limit, you will pay $0.45 per transaction. 
500 fee-free transactions

  • After the limit, you will pay $0.45 per transaction. 
$16 monthly fee  $29.95 monthly fee
  • The cost of opening a second subsequent account is $16.
  • The cost of opening a savings account is $15.
  • The cost of account management is $10.
  • Free for opening a second account.
  • Free for opening a savings account.
  • No cost management fee.
Free Cash Deposits up to $7,500 per month. Each additional $100 deposit will cost $0.30.  Free Cash Deposits up to $20,000 per month. Each additional $100 deposit will cost $0.30. 

 

When Is Bank of America a Good Fit for a Business Account?

A Bank of America business account can serve you if:

  • You make large cash deposits monthly: BoA provides low cash deposit fees on both business accounts. Fundamentals banking has a limit of $7,500 per month, while the limit for Relationship banking is $20,000 per month.
  • You do most of the banking in person: BoA has over 3,900 financial centers across the United States where you can easily access the services.
  • You want to use the same bank for personal and business banking: BoA offers checking, savings, and lending products for personal and business customers. It can be the one-stop shop for your banking needs.

When Is BoA Not the Best Fit for Your Business Account?

BoA offers excellent products and services for business banking. Still, they may sometimes fail to fit your needs, especially when:

  • You want a business checking account that provides interest: None of BoA’s business checking accounts offer interest. Some institutions, like BlueVine, give a 2% interest on balances up to $100,000.
  • You intend to make frequent ATM withdrawals from third-party non-BoA ATMs: You’ll pay the third-party fees plus another $2.50 for out-of-network withdrawals.
  • You want a bank offering a bonus for opening a business checking account: Chase Bank will offer you $300 as a bonus for opening a business checking account if you meet certain conditions.
  • You want unlimited fee-free transactions: At Bank of America, the business checking account is limited to 200 transactions per month on the Fundamentals account and 500 transactions on the Relationship account. BoA Preferred Rewards for Business

Bank of America’s preferred reward system offers discounted interest, payroll services refunds, and increased savings interest. The rewards also waive multiple banking fees like the inbound wire fee, monthly fees, and stop payments. This means more money in your pocket to increase your business’ revenue and net worth.

Gold

To qualify for the Gold level, business owners must have an active business checking account with an average balance of $20,000 over three months. Perks include

  • A 0.25% discount on the financing interest fee.
  • Level’s payroll refund full-service fee is $10.
  • It comes with 25% bonus credit card rewards.
  • 0.05% merchants’ service rewards.
  • A 5% interest boost for the savings account.

Platinum

If you’re eyeing the Platinum level, you must have a BoA business checking account with an average $50,000 balance over three months. Perks include

  • A 0.30% to 0.50% discount on the financing interest fee.
  • Level’s payroll refund full-service is $15.
  • It comes with 50% bonus credit card rewards.
  • 0.07% merchants’ service rewards.
  • A 10% interest boost for the savings account.
  • One free transaction for non-BoA ATM transactions.

Platinum Honors

Finally, for the highest reward level, you’ll need an active business checking account with an average $100,000 balance over three months. For example, if you have a high-revenue eCommerce store, you can reach this reward level in no time.

Perks at this level include

  • A 0.35% to 0.75% discount on the financing interest fee.
  • Level’s payroll refund full-service is $20.
  • It comes with 75% bonus credit card rewards.
  • 0.10% merchants’ service rewards.
  • A 20% interest boost for the savings account.
  • Unlimited free transactions for non-BoA ATM transactions.

Note: Perks may vary based on location and are subject to change.

Opening a Business Account With Bank of America

The bank offers three easy ways to open a business checking account.

  1. Select your checking account and apply online.
  2. Call their toll-free number at 866 283 4075.
  3. Book an appointment online with a financial officer.

You can apply directly for a Bank of America Business Account through the Bank of America’s official website.

Pre-requisites To Open an Account

The minimum requirement for a BoA account is similar for all businesses, whether Limited Liability Companies (LLCs), sole proprietorships, or partnerships. The requirements are

  • An Employer Identification Number/ social security number (SSN) for single-member LLCs.
  • Date of business establishment.
  • State and country of the business’ legal formation.
  • Personal data and that of everyone listed in the application for account ownership. Also, of these holding ownership of over 25% and the overall control manager.
  • Business license with the first & last names of the owner.

You might also need the trade name, fictitious name, Assumed and Trade name certificates, and the registration that has the trade name (occasionally called an occupational license). If the bank can’t verify your business, the Bank of America may request more documentation.

How Long Does It Take for My Account To Be Opened Online?

You can visit any BoA branch to open a business account. The approval will take 1-2 business days if you have all the required documents.

If you apply online, you must send the supplemental documents by email or fax after completing the application. You must send the documents within 11 days of submitting the online application. Upon receiving your application and supporting documents, BoA can approve your account within 24 hours.

If you request a business debit card while submitting the application, it will be available within five to seven days.

How Much Cash Should You Keep in Your BoA Account?

Opening a Fundamentals or Relationship checking business account with BoA requires an opening deposit of $100 each. Afterward, each account requires no minimum balance.

Both accounts vary on the fees for domestic and international wire transfers. Also, you can access up to $16,000 using ATMs across the U.S. Only out-of-network ATM transactions cost $2.50 for Fundamentals and Relationship business accounts.

To waive your monthly fee for the Fundamentals business account, you must maintain $5000 in your accounts, spend at least $250 on new purchases using the business debit card, and become a member of Preferred Rewards. Bank of America is the best option, but if you’re looking for alternatives to compare it to, you should consider alternative bank account options.

To waive your monthly fee for the Relationship business account, maintain a $15,000 combined monthly average balance and become a Preferred Rewards member for business.

Bank of America vs. Competitors

A Bank of America business account performs better than many other banks in various aspects. It is one of the most widespread traditional banks across the U.S., with over 3,900 branches and 16,000 ATMs. Compare it to Wells Fargo, which is only available in 33 states.

BoA offers various exciting products for small business financing, including small unsecured loans and multimillion-dollar medical practice loans. It offers more competitive rates than most banks.

BoA charges a $16 monthly maintenance fee for your business checking account. It is a bit higher than competitors like Chase Bank, which charge $15. However, BoA has lower requirements to waive the monthly fee.

If you spend $250 on debit purchases or maintain a $5,000 monthly average, BoA will waive the monthly fee. For Chase Bank, you must maintain a $2,000 daily balance and make $2,000 net purchases using your Chase business cards.

Is Bank of America the Best Bank for Your Business Account?

Bank of America offers small businesses one of the best business checking accounts. The waivable monthly fee and free monthly transactions can help you save some cash. The bank has widespread availability across the U.S. so that you can access in-person services easily.

This article originally appeared on Savoteur.


Ash & Pri are the Founders of AshandPri.com where they empower others to make smart money decisions across all aspects of life. They achieved financial freedom in their 30's and have traveled to over 30 countries, thanks to a disciplined approach to money management. Both hold an MBA degree and have 13+ years of experience in financial services, consulting, and telecommunications.