NerdWallet compares more than 135 business checking accounts across 50 banks and credit unions of all sizes
With the inherent complexities and endless obstacles faced by small business owners, even the seemingly simple task of finding a good business checking account has become complex and time-consuming.
A recent NerdWallet survey found that small business owners often default to the same institution with which they hold their personal checking account, and they subsequently find themselves having to switch institutions after experiencing unsatisfactory customer service and incurring surprising fees.
Business checking accounts are confusing and difficult to sift through:
- NerdWallet found that big banks offer an average of 5 business accounts, some up to 8. In addition to basic checking, other options include premium, analyzed, and specialty accounts
- Fees can be easy to incur if a small business owner is not careful: A business’s transaction volume or minimum balance can lead to high monthly fees (banks charge up to $50 a month in service fees, with additional usage fees up to $1.25 per transaction). Furthermore, free business checking accounts can be restrictive, and may lead to high fees if a business’s activity exceeds predefined limits
To help small business owners choose the best business checking account, NerdWallet is launching a business checking account comparison tool. “Business checking accounts vary according to a multiplicity of factors. They are not one-size-fits-all,” says Stephanie Wei, VP of Deposit Products at NerdWallet. “Restaurants have completely different banking needs than online retailers, and our tool integrates these differences to help businesses find a checking account tailored to their profile.” This tool will be accompanied by NerdWallet’s financial literacy resources articles, including an infographic for new business owners, that are tailored to meet the needs of small businesses.
NerdWallet’s business checking tool takes into account static factors, such as the location of the business and a business owner’s preference for financial institution type (credit union vs. bank), and further incorporates business-specific behavioral factors, such as transaction volume and minimum balance, to help small business owners find the best checking account tailored to their individual businesses.
NerdWallet, one of the nation’s premier personal finance sites, helps its users save money and time finding credit cards, credit unions and deposit rates online. NerdWallet was rated Money Magazine’s best credit card site in 2010 and has been featured in The New York Times, Forbes and by consumer advocate Clark Howard.