Bank of America and Chase offer excellent business checking products for fans of traditional banking. In addition to having multiple account options to fit your business needs, they offer an array of business services that can help your company grow and prosper.
Choosing between one of Bank of America’s two accounts and Chase’s three accounts comes down to the number of monthly transactions you have, the amount of cash deposited each month, and your ability to get monthly fees waived. All five are excellent, but each is slightly different to fit varying business needs. Additionally, Chase offers a $300 sign-up bonus when you open a business bank account, while Bank of America offers a bonus of $100 to $500.
Here are the five Bank of America and Chase business checking accounts (in order from the lowest numbers of free monthly transactions and free cash deposits limits to the highest):
Bank of America vs Chase: Quick Comparison
When To Use Each Bank
When To Use an Alternative
Sometimes, neither Bank of America nor Chase is the best choice for your business. You should consider an alternative when:
- You make frequent out-of-network ATM withdrawals: While the top two tiers of Chase accounts don’t charge for out-of-network ATM withdrawals, you’ll pay third-party fees with all five accounts. Novo is a good option, as it refunds all ATM fees at the end of the month.
- You want an interest-bearing checking account: None of the checking accounts listed here earn interest. Bluevine is an excellent alternative as it has a high-interest yield on qualifying deposits.
- You want cash back on debit card purchases: Oxygen is a great digital-only banking solution that offers up to 5% cash back on debit card purchases with select partner retailers.
Bank of America vs Chase: Basic Business Checking Accounts
Both Bank of America and Chase offer basic business checking accounts for small and startup companies. Also, both have a similar monthly fee, which can be waived. If you can get it waived, the Bank of America Business Advantage Fundamentals Banking account allows you 180 more free monthly transactions and $2,500 in cash deposits free each month than Chase’s Business Complete Checking.
Basic Business Checking Accounts Overviews
Chase has one big advantage at this tier of checking with no minimum opening deposit required. It also has about 700 more physical locations and a similar number of ATMs in its network. Both have good software integrations, neither account is interest-bearing, and neither offers reserve accounts at this tier.
Basic Business Checking Accounts Costs
Chase’s monthly fee is a little easier to waive than Bank of America. Also, Bank of America offers 200 free monthly transactions (to 20 for Chase) and allows you $7,500 in free cash deposits monthly (to $5,000 for Chase).
Basic Business Checking Accounts Sample Scenario
As you will see in this scenario, Bank of America may still be the less expensive option for your business even if you cannot get its fee waived.
*The average ATM surcharge from the ATM owner in 2022 was $3.14, per Bankrate’s 2022 checking account and ATM fee study.
Let’s say your business has an average monthly balance of $3,000, with 100 monthly transactions, $6,000 in cash deposits, and five out-of-network ATM transaction fees. In this scenario, the Bank of America Business Advantage Fundamentals Checking account is more affordable than the Chase Business Complete Banking account.
Because Bank of America has higher limits for fee-free transactions and cash deposits, you would end up spending about $20 less than you would if you had banked with Chase. Unless you have a very low number of transactions each month, Bank of America’s Business Advantage Fundamental Banking will almost always be a more affordable option than Chase’s Business Complete Checking.
Bank of America vs Chase: Middle & High-tier Checking Accounts
Because Chase has three accounts to just two for Bank of America, we’re comparing both companies’ mid-tier accounts alongside Chase’s high-tier account, Platinum Business Checking. When comparing the mid-tier accounts, Bank of America comes out on top with more monthly transactions and a higher limit of free cash deposits each month.
If your company has high balances, a high amount of cash deposits, and frequent outgoing wire transfers, Chase’s Platinum Business Checking may be the account for your business.
Middle & High-tier Checking Accounts Overviews
There are a couple of categories where Chase has an advantage over Bank of America. Bank of America requires a minimum opening deposit of $100 while Chase doesn’t. Chase also offers subaccounts in both its Performance and Platinum Business Checking accounts. Both offer great software integrations.
Chase has a slight edge in the number of physical locations. However, if physical locations are the deciding factor, the biggest consideration will be which of the two companies is closest to your business.
Middle & High-tier Checking Accounts Costs
Chase’s Platinum Business Checking comes with the largest monthly fee of $95. If you don’t have the balance to get that fee waived, that account likely isn’t the right one for your business needs unless you send frequent outgoing wire transfers. Platinum Business Checking pays for your four most expensive wire transfers per month, which would otherwise cost $35 each.
Between the two midtier accounts, Bank of America offers 250 more free monthly transactions. If you’re deciding between the two midtier accounts and don’t frequently send wire transfers, you should choose Bank of America Business Advantage Relationship Checking over Chase Performance Business Checking. Chase’s Performance Business Checking does pay for your two most expensive outgoing wire transfers each month.
Middle & High-tier Checking Accounts Sample Scenarios
Scenario 1: Lower Amount of Transactions, Cash Deposits & Out-of-Network ATM Withdrawals
*The average ATM surcharge from the ATM owner in 2022 was $3.14, per Bankrate’s 2022 checking account and ATM fee study.
**Bank of America only states that outgoing wire fees “vary.” For this example, we used the same fee as Chase’s outgoing wire transfers, which is $35 each, as an estimate.
If you can maintain a minimum balance of $35,000, choosing between Bank of America and Chase’s mid-tier accounts is a matter of determining which banking services you use most frequently. Compared to Bank of America’s Business Advantage Relationship Checking account, Chase Performance Business Checking has cheaper fees for cash deposits, out-of-network ATM fees, and outgoing wire transfers. However, Business Advantage Relationship Checking has a significantly higher transaction limit.
Additionally, if you cannot maintain a minimum balance of $35,000 or greater, the $30 monthly fee for Chase Performance Business Checking will bump up your total spending easily. Chase Platinum Business Checking is only a good option if you can maintain a minimum balance of $100,000 or greater. Otherwise, you would be required to pay a steep $95 monthly fee.
Scenario 2: High Amount of Transactions, Wire Transfers & Cash Deposits
*The average ATM surcharge from the ATM owner in 2022 was $3.14, per Bankrate’s 2022 checking account and ATM fee study.
**Bank of America only states that outgoing wire fees “vary.” For this example, we used the same fee as Chase’s outgoing wire transfers, which is $35 each, as an estimate.
When you have a monthly balance high enough to waive the Chase Platinum Business Checking monthly fee, it’s the best choice of these three accounts. It gives you the highest amount of free cash deposits per month ($25,000) and up to four of your most expensive outgoing wires free each month. If you are sending frequent outgoing wires, this can save you a tremendous amount of money each month in fees.
Bottom Line
When comparing Bank of America’s two business checking accounts and Chase’s three, it’s evident that regardless of which account you choose, you will be getting the support of an excellent, brick-and-mortar bank. Head-to-head, Bank of America has a slight edge over Chase when comparing lowest-tier accounts and midtier accounts. However, Chase’s Platinum Business Checking stands out as the best overall if your bank has high average balances and a high amount of cash deposits.
Before choosing an account, estimate the number of transactions and amount of cash deposited each month. Calculate the number of monthly fees with each account and choose the one that will be the least expensive for your business each month.