The Bank of America Business Fundamentals Checking account is the entry-level business checking product offered by Bank of America. While it does have some attractive features -- especially when it comes to convenience -- it isn't a free checking account, so it's important to weigh the pros and cons before deciding whether it’s right for you.
At a glance: Bank of America Business Fundamentals Checking
| Minimum Opening Deposit | None |
|---|---|
| Monthly Fee | $16 |
| ATM Fee | $2.50 (U.S.), $5.00 (International) |
| Free Cash Deposits | Up to $7,500 free + $0.30 for each $100 past this |
| Wire Transfer Fee | Varies |
| Overdraft Fee | $35 per item ($12 for overdraft protection transfers) |
| APY | None |
| Free Bill Pay | Yes |
| Signup Bonus | No |
Who is Bank of America Business Fundamentals Checking for?
The ideal customer for the Bank of America Business Fundamentals Checking account is a small business owner who keeps enough money in their account to avoid the monthly fee, doesn't need to make hundreds of transactions each month, and gets significant value from being able to visit branches and ATMs.
Features of the Bank of America Business Fundamentals Checking account
Before we get into the benefits and drawbacks of the Bank of America Business Fundamentals Checking account, here's a rundown of some of the key features to be aware of.
1. Tons of tools for businesses
Not only does Bank of America have a highly rated online and mobile banking portal, but the Bank of America Business Fundamentals Checking has many tools that could be very useful to small business customers. It offers payroll services, remote deposits, access to merchant services, access to the bank's Cash Flow Monitor, and more.
2. Large branch and ATM networks
Bank of America has approximately 4,300 branches and 16,000 ATMs located throughout the United States. So, if being able to get face-to-face customer service or convenient access to cash are priorities for you, the Bank of America Business Fundamentals Checking could be worth a look.
3. No minimum deposit
Unlike some other business checking accounts, the Bank of America Business Fundamentals Checking account doesn't have a minimum deposit requirement to open an account.
4. Monthly fee can be avoided
The Bank of America Business Fundamentals Checking has a $16 monthly fee, but this can be avoided by meeting one of three requirements:
- $5,000 combined average monthly balance in Bank of America accounts.
- At least $250 in net new purchases on a Bank of America business debit card.
- Qualify for (and enroll in) Bank of America's Preferred Rewards for Business program (more on that later).
How to access your money with the Bank of America Business Fundamentals Checking account
One of the advantages of opening a small business checking account with a large, national bank like Bank of America is that you'll have far greater access to your money than with an entirely online financial institution.
Deposit options
Bank of America customers can deposit money in person at any of its 4,300 branches located throughout the United States, or at most of the 16,000 Bank of America ATMs. Check deposits are also available through the bank's mobile platform, and it's also easy to link external accounts to your Bank of America Business Fundamental Checking account for the purpose of transferring funds.
Withdrawal options
Bank of America customers can withdraw cash from their accounts with no fee at any Bank of America ATMs located throughout the United States, or at any of the bank's branches.
Advantages to using Bank of America for your business checking account
While there are certainly some drawbacks to using a branch-based bank account for your business checking needs, there are also some advantages to consider. And when it comes to branch-based banking, the Bank of America Business Fundamentals Checking has more perks than some of its competitors.
1. Excellent mobile and online platform
Bank of America has a top-rated online banking portal and also has one of the most user-friendly mobile apps in the business. The Bank of America Mobile Banking app holds a 4.7 out of 5 star rating on the Google Play store and 4.8 out of 5 in the App Store.
2. Free bill pay
The Bank of America Business Fundamentals Checking account offers free online bill pay to customers.
3. Preferred Rewards for Business
Bank of America business checking customers who have a three-month average daily balance of $20,000 or more in qualifying accounts (it can be spread across more than one account) are eligible to participate in the Preferred Rewards for Business program.
Depending on the rewards tier, this can get customers better rewards rates on Bank of America business credit cards, interest rate discounts on loans, and no-fee ATM withdrawals outside of Bank of America's network, just to name a few. For customers with high-balance accounts, this can be a big differentiator.
5. Business debit cards
Bank of America Business Fundamentals Checking offers two different types of debit cards. The Business Debit Card is designed for the business owners and/or those who have financial discretion over the business' cash. The Business Employee Debit Card allows employees to make purchases but is very limited when it comes to withdrawals.
6. Thousands of branch locations
Bank of America has about 4,300 branch locations in the United States, which makes it a very convenient option for small businesses who need face-to-face customer service.
7. Large ATM network
With about 16,000 ATMs, Bank of America offers easy and convenient access to cash. Between the vast ATM network and the bank's branch network, the Bank of America Business Fundamentals Checking account can be an excellent choice for cash-heavy businesses.
8. Business credit cards
If you also need a credit card for business expenses and prefer to keep all of your business' finances with one institution, Bank of America offers a nice selection of some of the best business credit cards currently available.
Drawbacks of using Bank of America for your business checking account
One of the biggest reasons you might want to consider an online-based bank as opposed to a branch-based business bank account like Bank of America Business Fundamentals Checking is that online banks have lower cost structures, and can pass their savings onto their consumers.
With that in mind, the main drawbacks of the Bank of America Business Fundamentals Checking account all have to do with costs.
1. Fees
The Bank of America Business Fundamentals Checking account has some fees that you likely won't have to worry about with online-based competitors. Unless you qualify to have it waived, you'll pay a monthly account fee. If you exceed a certain number of transactions each month or deposit cash beyond a certain threshold, you'll pay a fee for that.
2. Accounts don't earn interest
There are some business checking accounts that earn interest, but the Bank of America Business Fundamentals Checking account isn't one of them. If you want your capital to earn some interest while it's in your account, you should look elsewhere.
3. Wire transfers can be costly
Not only does Bank of America charge Bank of America Business Fundamentals Checking customers for outgoing wire transfers, but it also charges for incoming wires as well. If your business frequently has funds wired (either in or out), you might want to look for a cheaper option.
Alternative business checking account options from Bank of America
In addition to the Business Fundamentals Checking Account, Bank of America offers a higher-end checking account for businesses.
Bank of America's Business Advantage Checking account offers a few additional features as compared with the Business Fundamentals Checking product. It offers easy QuickBooks integration (which costs more with the Fundamentals account), the ability to give employees customized levels of access to the account, no-fee stop payments, and a few other perks.
A great checking account for some businesses
The Bank of America Business Fundamentals Checking account can be great for cash-heavy businesses, especially those that can avoid the monthly fee and won't need to use the account for hundreds of transactions each month.
However, it is not the cheapest checking account option for your small business, nor is it an interest-bearing account, so if keeping fees to a minimum or earning interest are priorities, it could be a smart idea to shop around.
Frequently Asked Questions for Bank of America Business Fundamentals Checking
Who is the Bank of America Business Fundamentals Checking account best for?
Who is the Bank of America Business Fundamentals Checking account best for?
The Bank of America Business Fundamentals Checking Account can be great for cash-heavy businesses, especially those that can avoid the monthly fee and won't need to use the account for over 200 transactions each month.
How can I open a Bank of America Business Fundamentals Checking account?
How can I open a Bank of America Business Fundamentals Checking account?
You can open a Bank of America Business Fundamentals Checking online, and you can send the required documentation electronically. Once the required documents have been submitted, your account can be opened and ready to use within 24 hours.
What are the biggest perks of the Bank of America Business Fundamentals Checking account?
What are the biggest perks of the Bank of America Business Fundamentals Checking account?
There are some big perks, including a top-rated mobile app, free bill pay, payroll tools, and a massive network of 4,300 branches and 16,000 ATMs.
How much do I need to open a Bank of America Business Fundamentals Checking account?
How much do I need to open a Bank of America Business Fundamentals Checking account?
There is no minimum initial deposit required to open an account, but you'll need a certain amount to avoid a monthly fee.
Matthew Frankel, CFP owns shares of Bank of America. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
