Business vs. Personal Checking Account: What’s the Difference?
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What do business and personal checking accounts include?
- Debit cards.
- ACH transfers.
- Checks.
- ATM access.
- Wire transfers.
How different are their transaction limits?
- Businesses: $5,000 per day at ATMs.
- Individuals: $2,000 per day at ATMs.
- Businesses: $5,000 per day (more if you take certain security measures).
- Individuals: $1,000 per day.
Do business accounts cost more?
- Businesses: Monthly maintenance fees start at $15 per month. Fees can be waived with a minimum average balance of $5,000.
- Individuals: Some accounts have no monthly maintenance fee. Others cost $15 per month, which can be waived if you get $250 per month in direct deposits.
What advantages do business accounts offer?
- Employee debit cards. You can issue additional debit cards so your team can make purchases on behalf of the business.
- User roles and spending controls. Some business checking accounts, like Relay, let you set up accounts with different permissions for different users. For example, a staffer might be able to add payees and pay bills, but a manager has to approve those payments.
- Tax-planning tools. Many business accounts can integrate directly with your accounting software. Some, like Found, let you automatically set aside money for tax payments.
- Accepting credit card payments. Chase, for example, offers an integrated credit card processing tool. You can open the Chase app on your phone and customers can tap their card to pay.
- Accounting software integrations. When you have a business checking account, all your revenue and expenses are recorded in your bank’s transaction logs. That can make keeping track of your spending much easier. Plus, business checking accounts can often sync with accounting software.
- Separated bank statements. Lenders often request your recent bank statements when you apply for a business loan so they can evaluate your cash flow. Having a dedicated business bank account makes it easier to provide this information.
Are business checking accounts FDIC insured?
Can you use a personal checking account for your business?
Are there legal reasons to not use a personal account for business?
Should you open a business checking account?
Ready to start business banking?
1. Choose a business bank
Shop around for a bank with the features you need.
2. Apply for an account
This can often be done online in a matter of minutes.
3. Deposit funds and make payments
You can now use your account and debit card.