Capital One Business Banking Review 2024
This Capital One review highlights how the bank brings flexibility to the financial world through online banking and various business accounts. Its structure aims to help business owners minimize fees while maximizing efficiency.
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Our Verdict – Capital One
Capital One is fantastic for busy entrepreneurs, offering unlimited free monthly digital transfers. You can also earn a bit of interest with a business savings account.
However, business owners should know Capital One’s monthly service fees. New ventures need help with these fees, so it’s best for those who can meet the balance requirements to avoid them entirely.
Pros
- No overdraft fees
- Unlimited free digital transfers
- Low minimum deposit requirement
Cons
- Limited physical locations
- Monthly account fees
- Low interest rates on business accounts
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Capital One at a Glance
Capital One is a major online bank that offers personal and business checking and savings accounts and other features. While business accounts are free to sign up for, there’s a monthly fee if balances fall below a certain threshold.
The Business Savings Account offers a modest 0.2% APY for those with extra funds, though checking accounts don’t earn interest. Capital One does waive fees for overdrafts, some wire transfers, and a portion of cash deposits. One of its standout features is unlimited free digital transactions, allowing you to move and send money to others without any monthly limits.
Who Capital One is Best For: Capital One’s monthly service fees can be taxing on new ventures, making it more suitable for businesses with existing income sources. However, Capital One waives these fees if you maintain high enough account balances. Despite this, the low interest rates on its savings accounts might leave larger organizations wanting more.
If you’re considering opening a business account, check out these detailed reviews of alternatives: Kabbage, SoFi, and Oxygen. Each review includes the pros, cons, and comparisons to help you make an informed decision.
Pricing: Capital One doesn’t charge anything for opening one of its three business-related accounts. However, you may face monthly fees if you don’t meet the bank’s minimum balance requirements. Depending on the account, you might also encounter wire fees or costs for cash deposits.
| Plans | Basic Business Checking | Unlimited Business Checking | Business Savings |
| Monthly Fee | $15, waived with $2,000 minimum balance | $35, waived with $25,000 minimum balance | $3, waived with $300 minimum balance |
| Minimum Deposit to Open Account | $250 | $250 | $0 |
| Minimum Balance to Maintain Account | $0 | $0 | $0 |
| Overdraft Fees | $0 | $0 | $0 |
| APY | 0% | 0% | 0% |
| Transactions | Unlimited free digital transactions | Unlimited free digital transactions | Unlimited free digital transactions |
| Cash Deposits | Free for first $5,000 each month, then $1 for each $1,000 thereafter | Free through mobile, ATM, or direct deposit | N/A |
| ATM Fees | Over 70,000 fee-free ATMs, minimum $2 on out of network | Over 70,000 fee-free ATMs, minimum $2 on out of network | Over 70,000 fee-free ATMs, minimum $2 on out of network |
| Wires | Incoming: $15 Outgoing: $25 |
First 5 wires are free, then $25 per transfer | N/A |
Capital One provides business owners with several account options. Checking accounts are ideal for frequent transactions, while savings accounts allow unused funds to accrue interest. To open one of the two business checking accounts, you’ll need just $250. From there, the possibilities are endless.
Digital transactions between your account and those of vendors and clients are unlimited. Plus, with over 70,000 fee-free ATMs nationwide, you can easily locate a Capital One ATM using the online or mobile locator.
Basic Business Checking
Basic Business Checking caters to smaller ventures with less cash flow. There’s no minimum balance requirement to keep your account open, but accounts averaging less than $2,000 over the last 30 or 90 days will incur a $15 monthly service fee. Cash deposits are free for the first $5,000 each month, but you’ll face charges for both incoming and outgoing wire transfers.
Unlimited Business Checking
Unlimited Business Checking charges a $35 monthly fee if your business balance is less than $25,000 over the last 30 or 90 days. There are no fees for cash deposits, and the first five wire transfers each month are free.
Business Savings
Companies with idle funds can open a Business Savings account to make their money work. If you maintain a balance of at least $300, Capital One will waive the $3 monthly service fee. While the interest rate is modest at 0.2%, it still allows your money to grow.
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Capital One Features
As a financial institution, Capital One offers several standout banking features to assist customers. Here are the most notable ones:
Credit Cards
Capital One offers seven business credit cards for your business to choose from. Two of these cards have annual fees but provide higher incentives, such as additional cashback or double miles on purchases. The other cards are free to use.
Each card features a built-in reward system, though some have high annual percentage rates if you can’t pay off your balance regularly. Most cards require an excellent credit history, but there’s an option for those looking to build credit.
Capital One makes it easy for business owners to issue cards with varying cash limits to staff as needed. You can monitor and track purchases or remove users at any time. These cards earn reward points and are free to add to your business account.
Business Checking Accounts
Businesses can choose between two unique checking accounts when joining Capital One. One plan is tailored for up-and-coming enterprises, while the other is designed for organizations with stable monthly income. Both checking accounts have monthly service fees if you don’t meet the required monthly or quarterly balance thresholds.
Business Savings Account
In addition to its two checking accounts, Capital One offers a savings account for businesses with extra funds. With a 0.2% APY, you can earn some interest on money that would otherwise earn nothing in checking. Plus, if you maintain a balance of at least $300, you won’t have to worry about monthly service fees.
Mobile Deposit
With a check in hand, you can easily make a deposit using the Capital One mobile app. Just snap photos of both sides of the check and follow the on-screen prompts. There’s no need to visit an ATM or branch location to complete the transaction.
Minimal Fees
Capital One doesn’t charge fees for opening an account, and you can avoid maintenance fees by maintaining the required monthly balance. Basic Business Checking accounts offer free cash deposits for the first $5,000 but charge $1 for every $1,000 after that. Incoming wires cost $15, while outgoing wires cost $25.
Unlimited Business Checking accounts eliminate cash deposit fees and make the first five wires free each month. However, using an out-of-network ATM incurs a $2 fee for both account types.
Loans and Lines of Credit
Among Capital One’s many features are loans and lines of credit for business owners. Loans range from $10,000 to $5 million, with fees varying based on size and risk. Repayment terms can extend up to 20 years at a fixed rate.
To qualify for a loan, your business must have been operating for at least two years and have an open Capital One checking account. Capital One permits only one line of credit per employer identification number (EIN). Learn how to open a business account with an EIN here.
Business Expertise
Capital One’s long history and extensive experience provide unique insights for any business style. Their team works closely with each organization, crafting tailored solutions to help your company grow.
Capital One Contact Info
Capital One’s detailed “Contact Us” page makes it easy to find the right person to talk to. If you’re unsure where to start, you can call their main customer service number at 1-877-383-4802.
Alternatives to Capital One Review
Some may find Capital One’s imperfections a deal-breaker. If that’s the case for you, consider one of these alternatives instead.
Novo focuses exclusively on small business banking, eliminating the clutter of personal banking services. There’s no cost to sign up, and Novo doesn’t charge any service fees regardless of your balance.
Their financial organization tool, available on both PC and mobile apps, allows you to allocate funds into different buckets, making it easy to prepare for taxes, rent, or other upcoming expenses. Novo also refunds ATM fees, even from out-of-network machines, though they don’t support cash deposits.
Novo does not offer business savings accounts or checking accounts, and its checking accounts do not earn interest. Be mindful of your balance, as any overdraft will incur a $27 fee.
Bluevine offers some of the best interest rates for a business checking account, providing 1.5% on balances up to $100,000. However, there isn’t a savings account option for funds exceeding that amount. You can also get 4.25% APY. Like Capital One, Bluevine has a fee schedule for cash deposits, out-of-network ATMs, and wire transfers.
Open an account without a minimum deposit, but monthly transfer limits apply. Businesses with high transaction volumes prefer Capital One’s unlimited transfers.
Bluevine imposes unavoidable fees for cash deposits and outgoing wire transfers. They offer loans up to $250,000 with quick approval and reasonable monthly interest rates.
Axos Bank offers several checking and savings account options for small businesses. Basic Business Checking doesn’t charge any service fees, but other plans do if your balance is too low. Premium Checking requires an initial deposit of at least $25,000.
Savings accounts offer just 0.2% APY, similar to Capital One. Even business certificates of deposit (CDs) top out at the same rate. The only way to get a better rate is through Axos’ Interest Checking account, which requires a $5,000 minimum daily balance.
Unlike Capital One, which has some physical locations, Axos is strictly online. While the app effectively manages your account, there’s no option for in-person assistance.
Kabbage offers a free business checking account to sign up for and maintain. Accounts up to $100,000 earn 1.1% APY, but any additional funds earn no interest. This setup is ideal for sole proprietors or LLCs with a single owner, as Kabbage doesn’t support joint accounts.
While Kabbage doesn’t charge fees for out-of-network ATM use, the ATM itself may impose a fee. Additional fees are also charged for cash deposits and teller transactions.
Both the website and mobile app are intuitive and user-friendly. However, deposits made through the mobile app can take several days to clear. Kabbage offers lines of credit ranging from $2,000 to $250,000 if you need additional funds, with approvals typically within minutes.
Frequently asked questions
Do I Need a Business Bank Account for My LLC?
While having a business bank account for an LLC is not required, having one helps protect your personal income from your business finances.
What Bank is Behind Capital One?
Wells Fargo split its credit card division in 1994, eventually becoming Capital One.
Is Capital One a Big Bank?
Yes, Capital One is one of the largest banks in the United States, currently ranking tenth overall based on total assets.
Bottom Line on Capital One Review
Capital One is one of the most prominent banks in the country, even though most of its business is conducted online. Its business checking and savings plans are designed for smaller companies looking to minimize fees and earn some interest on idle funds.
Unlimited digital transfers alleviate transaction stress, allowing business owners to focus on what matters most.