Bank of America Business Account Review 2023

Bank of America is a large international financial institution that offers business bank accounts for companies of all sizes, along with a full slate of other financial products and services. It has robust mobile and online banking features that allow business owners to securely manage their accounts, make payments, transfer funds, track spending, manage their budget and more. The Bank of America business account review below looks into the benefits and drawbacks of opening an account with this institution.

With Bank of America, business owners can open the checking, savings and merchant accounts they need to conduct transactions and plan for the future, and it’s not even necessary to visit a branch in person—many times, it’s possible to open these accounts online. You’ll need a variety of documents and other information, depending on your business entity, and Bank of America needs to receive all documentation within 11 days to process your application.

What is a Bank of America Business Account?

Bank of America offers a Business Advantage Fundamentals™ Banking account and a Business Advantage Relationship Banking account to meet the needs of business owners. Both of these accounts can be opened and maintained without fees if businesses meet certain balance and spending criteria.

In addition to helping account holders avoid Bank of America business account fees, these accounts also come with the benefit of being able to open additional accounts at waived or reduced rates, as well as other perks.

Bank of America Business Account Pros and Cons

As a major financial institution and provider of financial services for businesses, Bank of America’s accounts offer business owners a number of benefits smaller banks may be unable to provide. However, there are also some tradeoffs associated with a Bank of America business account, which we’ll review below.

Pros of a Bank of America Business Account

FEES ARE AVOIDABLE. It’s possible to avoid monthly Bank of America business account fees by maintaining a combined average monthly balance of $5,000 (with Fundamentals™) or $15,000 (with Relationship), as well as by becoming a Preferred Rewards for Business member, which requires a three-month combined average daily balance of $20,000 or more.

IN-PERSON BANKING OPTIONS. Bank of America has over 4,000 physical branches in 37 states and Washington, D.C., making it an attractive option for business owners who need (or simply prefer) to do some of their banking in person. Particularly for smaller businesses, this makes it possible to build a relationship with bankers that can have benefits as the business grows and its needs change.

SERVICE BUNDLING. Bank of America makes it easy for business account holders to take advantage of the bank’s other financial services and products, including business loans, savings accounts, credit cards, payment processing and more. Enrolling in the Preferred Rewards for Business program allows business owners to receive discounts on these other services, as well as more favorable interest rates.

DIGITAL BANKING PLATFORM. Even if you don’t live in a state or community with a physical branch, you can still open a Bank of America business account and access it through the bank’s robust digital platform. Business owners have the ability to download bank activity to QuickBooks, view transactions, manage statements, pay bills, connect with bank experts and take advantage of the Cash Flow Monitor tool.

Cons of a Bank of America Business Account

INCIDENTAL FEES. One drawback of opening a Bank of America business account is that the institution charges its account holders a number of incidental fees, including for such seemingly mundane transactions as out-of-network ATM withdrawals and services like check images, ATM/debit card replacement, stop payments and more. Fundamentals™ account holders can upgrade to a Relationship account to avoid these fees, but it may be preferable to find a bank with fewer and more modest fees.

LIMITED ACCOUNT OPTIONS. While Bank of America does offer both Fundamentals™ and Relationship accounts, these two options may not be sufficient for every type of business. Some other banks may be able to more easily tailor their options to meet a business’s very specific and unique needs. It pays to understand what you really need out of your business bank account before you commit to opening one.

Who is a Bank of America Business Account Best For?

A business owner with basic banking needs is likely to be well served by opening a Bank of America business account. This is especially the case if they have a need to conduct very much banking business in person and they’re located close to one of the bank’s brick-and-mortar branches. For this type of customer, having access to online banking may just be a nice bonus, or it may not be all that necessary.

As our Bank of America business account review indicated earlier, this is also a bank that’s well equipped to meet a variety of business needs, including business loans with favorable interest rates. If your business is likely to benefit from a robust range of banking services, Bank of America makes bundling these services worthwhile through reduced fees and overall convenience.

Who Should Reconsider Using a Bank of America Business Account?

While paying monthly and incidental fees may not be overly burdensome to larger businesses, a business that’s just starting out may be put off by Bank of America’s numerous business account fees, particularly since this is also the type of business that’s less likely to want (or need) to upgrade to a Relationship account.

A Bank of America business account may also not be a good option for a business owner who’s uncomfortable with conducting financial transactions online, especially if they aren’t located near a physical bank branch. While the bank’s online banking platform is robust and user-friendly, this may not be enough of a benefit for a business owner who needs to make a lot of cash deposits or may require in-person assistance on a regular basis.

How a Bank of America Business Account Works

If you’re interested in opening a Bank of America business account, review the list of requirements on the bank’s website to verify you have everything you need. In addition to basic information about yourself and your small business (such as your SSN, EIN, legal business name, etc.), you’ll need to gather up some key documents. The bank requires a business formation document, DBA certificate and government-issued ID.

Those who apply online for a Bank of America business account will need to submit this documentation via email or fax within 11 days of submitting an application. After the bank receives these documents, it may take as little as 24 hours to get your account up and running.

Key Bank of America Business Account Features

What sets Bank of America’s business accounts apart from the competition? These accounts offer some key features that make them attractive to small business owners looking for a banking partner. Review the following characteristics to determine if Bank of America is the right bank for your business.

In-person and digital banking

Bank of America has over 4,000 physical branches and more than 16,000 ATMs in 37 states, and its digital banking platform is available even to businesses in states in which the bank doesn’t have a physical presence. The bank can be an accessible option for business owners everywhere, depending on their specific needs.

Digital tools

In addition to Bank of America’s standard digital banking services, business account holders can also take advantage of a variety of other digital tools to help them manage their accounts. Enjoy safe and reliable funds transfers through Zelle®, make purchases using digital debit cards, integrate with QuickBooks, get help from the Erica® virtual financial assistant and more.

Account alerts

Need help keeping track of important details related to your business bank account? Bank of America offers a customizable account alert system that can notify you when important bills are due, if your balance is low or if the system detects unusual or unauthorized activity on your account.

Business Advantage Savings

Relationship account holders are given a fee-free Business Advantage Savings account, and Fundamentals™ account holders can also link one of these accounts to their checking account. Earn interest on funds held in your savings account with 0.01% APY, or enjoy up to 0.04% APY by becoming a Preferred Rewards for Business client.

Easy-to-switch account settings

While Bank of America has just two types of business checking accounts (Fundamentals™ and Relationship), the bank makes it easy to switch your account type if your business’s needs change. Talk to your banker about switching your account to take advantage of different benefits or if you’re making changes to your business.

Preferred Rewards for Business program

Bank of America’s Preferred Rewards for Business program is the bank’s way of acknowledging the importance of its relationships with its business account holders. It offers members a variety of benefits, savings and rewards for conducting business using their Bank of America accounts, with no fees attached. 

Conclusion

Whether you’re a small business owner looking to open your first account or you’re considering switching to a different banking partner, hopefully this Bank of America business account review has provided some useful information about the pros and cons associated with one of the country’s largest financial institutions. Visit a branch or the bank’s website to learn more or get answers to your questions.