As a business owner, you rely on many people to help you every day: employees, suppliers, customers and, yes, bankers. The right banking relationship can provide more than just a place to deposit and withdraw your money. They can also offer the products and support you need to help you operate and grow your business.
No matter the size, age, or type of business, it’s important to keep personal and business finances separate by opening business bank accounts. These accounts range from simple checking and savings accounts to business credit cards, lines of credit and merchant services. In this article, we’ll discuss each type of account, its benefits, and what to consider when choosing the best option for your business.
Types of business bank accounts
Business current account – A business checking account allows you to write checks for your business, accept checks at your business, and separate your personal and business finances. Many current accounts offer additional business services. For example, the Chase Business Complete Banking℠ account comes with built-in card acceptance using Chase Mobile® enforcement and fraud protection for your business and customers.
Company savings account – A business savings account allows you to save for longer term goals while earning interest on your money. Many businesses open savings accounts to provide a cushion for unexpected expenses, set aside money for quarterly or annual taxes, and protect against overdraft fees. Most banks limit the number of withdrawals you can make from a business savings account each month. This type of account is therefore generally not used for current expenses. Chase for Business offers different business savings accounts depending on your business needs and monthly balance.
Business credit cards – Business credit cards allow business owners to separate their personal and business purchases, protect their purchases, and often earn rewards that can be reinvested in their business. These credit cards also increase your purchasing power by filling temporary cash gaps. When it comes to business credit cards, there is no one size fits all, it really depends on the business. Here are some questions to consider when choosing the best credit card for your business:
- Would you benefit from a card that offers higher rewards for travel?
- Are you spending more in certain categories like office supplies or technology services?
- Do you need a longer interest-free introductory period?
- Do you plan to make a major purchase in the next few months?
- Could you maximize your rewards and benefits by having more than one card?
Chase for Business offers a number of business credit card options that fit the bill for every business and every need.
Merchant Services Account – A merchant services account allows businesses to accept credit and debit card payments, Apple Pay and other contactless payments from customers, which is more important than ever. Chase for Business offers a number of payment solutions, including mobile payments that cater to today’s businesses and customers on the go.
What you need to open a business bank account
Although banks may have different requirements depending on the type of business account you want to open, most requirements include the same basics:
- Employer identification number (or social security number if you are a sole proprietorship)
- Company formation documents
- Ownership agreements
- Business license
Be sure to check the bank’s website for specific information.
Having a strong relationship with your banker can go a long way toward growing your business. Speak with a Chase investment banker to determine which business accounts are best suited for your business.
For Informational/Educational Purposes Only: The opinions expressed in this article may differ from those of other employees and departments of JPMorgan Chase & Co. The opinions and strategies described may not be appropriate for everyone and may are not intended to be specific advice/recommendations for any individual. . The information has been obtained from sources believed to be reliable, but JPMorgan Chase & Co. or its affiliates and/or subsidiaries do not warrant its completeness or accuracy. You should carefully consider your needs and goals before making any decisions and consult with the appropriate professional(s). Prospects and past performance are not indicative of future results.
You should carefully consider your needs and goals before making any decisions and consult with the appropriate professional(s).
JPMorgan Chase Bank, NA Member FDIC. Equal Opportunity Lender, ©2022 JPMorgan Chase & Co.
Full Chase Business VerificationSM has a $15 monthly service fee unless you maintain a linked Chase Private Client CheckingSM account, are a current service member or veteran of our nation’s military with a valid military ID or proof of military service, OR complete at least one of the following eligible activities for each Chase Business Complete account Checking: 1) Maintain a minimum daily balance of at least $2,000 in your account each day of the statement period. The minimum daily balance must be maintained at the start of the day for each day of the statement period. 2) Spend at least $2,000 using your Chase Ink® Business card(s) on purchases. The legal business name on Chase Ink® Business cards and Chase Business Complete checking accounts must be identical. Qualifying activity will be based on the aggregate spend (less any returns or refunds) on each Chase Ink business card, for the previous monthly billing period(s). 3) Deposit at least $2,000 into your Chase Business Complete Checking account from one or more of the following: Chase QuickAcceptSM transactions and/or transactions of Eligible Chase Merchant Services and/or Eligible InstaMed Products. Eligible Chase Merchant Services products include only those whose transaction history can be viewed via Chase Business Online, Chase Connect®or JP Morgan Access®. Eligible InstaMed products are InstaMed Patient Payments and InstaMed Patient Portal. All such transactions are net of chargebacks, refunds or other adjustments. The cut-off time for your eligible Chase Merchant Services account is the last business day of the current account statement period at 7:00 a.m. Eastern Time. For example, if your monthly bank account cycle ends on November 30, your eligible Chase Merchant Services account deadline for deposits to your Chase Business Complete Checking account is 7:00 a.m. EST on November 30. . The cut-off time for your eligible InstaMed debits or credits is the last business day of the current account statement period at 11:59 p.m. Eastern Time. For example, if your monthly bank account cycle ends on November 30, your eligible InstaMed account deadline for deposits to your Chase Business Complete Checking account is 11:59 p.m. Eastern Time on November 30. Chase QuickAccept is only available in Chase Mobile® app on certain mobile devices and is not available in US territories or outside of the United States. Use of QuickAccept is subject to eligibility, terms of service, monitoring, and further review. Deposits are subject to limits, verification, fraud monitoring and other restrictions. Messages and data rates may be applied.
This information is valid as of March 20, 2022 and is subject to change.
Deposit and credit card products provided by JPMorgan Chase Bank, NA Member FDIC. Accounts subject to credit approval. Restrictions and limitations apply. Fees and product specifications are subject to change at any time. All accounts are subject to approval.
Chase Business Complete Banking is available in the United States, excluding Alaska, Hawaii, and US territories.
Fraud Protection Services are available for Eligible Business Checking Accounts and include Positive Pay Service (“Positive Pay Service” or “Check Protection Services”), Reverse Positive Pay Service (“Positive Pay Service” reverse positive” or “check monitoring”), and the ACH debit blocking service.