One simple way you can manage monthly business expenses is by choosing the most cost-effective banking products and services and using them in a way that minimizes fees.
Here are 10 ways you could lower or avoid business account fees:
10 ways to help avoid business banking and credit card fees
July 10, 2024 | 4 minute read
1. Choose the right business bank account for your needs
When shopping for a business checking and savings account, look for options designed for the average monthly balance you plan to maintain and the number and type of transactions you expect to make each month. This can help you avoid paying more fees than necessary.
Do you make a high number of monthly transactions to your business checking account? Some banks charge a fee per transaction over a set transaction limit, usually around 200 transactions or more for a basic account. (The limit may be lower for some products targeted to startups and sole proprietorships.) Others may charge a fee for cash deposits beyond a set dollar amount.
If your business makes mostly cash deposits, it's wise to search for a checking account with a high cash deposit threshold before fees take effect. Review your transaction history to determine where your business falls on this spectrum.
Time is money for small businesses, so also keep in mind the level of service and special features an account offers.
Read more: How do I open a business bank account
2. Maintain minimum account balances
Many banks will waive the business account monthly fee (ranging from about $12 to $30 a month among major banks) if you maintain a minimum balance. Another tip: Sign up for online alerts to be notified if your balance is in danger of dropping too low.
3. Link your bank accounts
If you have multiple accounts with the same bank, you may be able to qualify for a monthly fee waiver by linking them together, which will give your business a higher combined balance. Other qualifying accounts may include savings accounts and certificates of deposit (CDs).
4. Enroll in products or services that will waive your fee
Using additional products or services offered by your bank may give your business the opportunity to avoid monthly fees. For example, if you are a Bank of America customer, you can use Zelle® for your business to send or receive money with no fees through Bank of America’s mobile app or online banking.1 Certain banks also offer rewards programs that will waive fees to users of several products or services.
5. Get overdraft protection
Find out if your bank offers overdraft protection through linked accounts. You may also be able to set low-balance alerts via email or text message.
6. Make the most of your credit card payment preferences
Take stock of your credit card payment habits. If you regularly pay off balances every month, a small business credit card with more perks but a higher annual interest rate could be worthwhile. On the other hand, if you tend to carry over charges every month, a card with a higher revolving limit but a lower interest rate will probably save you more money in the long run. Cards with no annual fees can save you money, too.
7. Be wary of fees for additional cards
Do you plan on issuing credit cards to your employees so they can make purchases for your business? If so, look for banks that offer additional cards at no extra cost.
8. Keep an active account
Some fees may be waived when you spend a minimum monthly amount (sometimes as little as $250) on a business debit card.
9. Avoid transfer fees
If you plan to move funds between bank accounts on a regular basis, make sure you choose a bank that has an option for no-fee ACH transfers.
10. Compare travel perks
Will you travel a lot? If so, compare business credit cards that connect your purchases to travel reward and frequent flyer programs. Be aware that many airline-affiliated business cards require you to pay an annual fee, so it's important to weigh that cost against the travel benefits you gain. Make sure you know if a card you’re considering charges international transaction fees.
It's still important for small business owners to develop a relationship with a bank, even as more banking is being done online. As your business grows, its needs will change. Your banker can help you stay on top of the latest products and services, so you can find the most cost-effective options and get the most bang for your buck.
1 Zelle® should only be used to send money to friends, family or others you trust. We recommend that you do not use Zelle® to send money to those you do not know. Transfers require enrollment in the service with a U.S. checking or savings account and must be made from an eligible Bank of America consumer or business deposit account. Transactions between enrolled users typically occur in minutes and transactions between enrolled consumers do not typically incur transactions fees from Bank of America. We will send you an email alert with transaction details after you send money using Zelle®. Dollar and frequency limits apply. See the Online Banking Service Agreement at bankofamerica.com/serviceagreement for further details. Data connection required. Message and data rates may apply. Neither Bank of America nor Zelle® offer purchase protection for any payments made with Zelle®. Regular account fees apply. To send or receive money with a small business, both parties must be enrolled with Zelle® directly through their financial institution’s online or mobile banking experience. Zelle and the Zelle related marks are wholly owned by Early Warning Services, LLC and are used herein under license.
Important Disclosures and Information
Bank of America, Merrill, their affiliates and advisors do not provide legal, tax or accounting advice. Consult your own legal and/or tax advisors before making any financial decisions. Any informational materials provided are for your discussion or review purposes only. The content on the Center for Business Empowerment (including, without limitations, third party and any Bank of America content) is provided “as is” and carries no express or implied warranties, or promise or guaranty of success. Bank of America does not warrant or guarantee the accuracy, reliability, completeness, usefulness, non-infringement of intellectual property rights, or quality of any content, regardless of who originates that content, and disclaims the same to the extent allowable by law. All third party trademarks, service marks, trade names and logos referenced in this material are the property of their respective owners. Bank of America does not deliver and is not responsible for the products, services or performance of any third party.
Not all materials on the Center for Business Empowerment will be available in Spanish.
Certain links may direct you away from Bank of America to unaffiliated sites. Bank of America has not been involved in the preparation of the content supplied at unaffiliated sites and does not guarantee or assume any responsibility for their content. When you visit these sites, you are agreeing to all of their terms of use, including their privacy and security policies.
Credit cards, credit lines and loans are subject to credit approval and creditworthiness. Some restrictions may apply.
Merrill Lynch, Pierce, Fenner & Smith Incorporated (also referred to as “MLPF&S" or “Merrill") makes available certain investment products sponsored, managed, distributed or provided by companies that are affiliates of Bank of America Corporation (“BofA Corp."). MLPF&S is a registered broker-dealer, registered investment adviser, Member SIPC, and a wholly owned subsidiary of BofA Corp.
Banking products are provided by Bank of America, N.A., and affiliated banks, Members FDIC, and wholly owned subsidiaries of BofA Corp.
“Bank of America” and “BofA Securities” are the marketing names used by the Global Banking and Global Markets division of Bank of America Corporation. Lending, derivatives, other commercial banking activities, and trading in certain financial instruments are performed globally by banking affiliates of Bank of America Corporation, including Bank of America, N.A., Member FDIC. Trading in securities and financial instruments, and strategic advisory, and other investment banking activities, are performed globally by investment banking affiliates of Bank of America Corporation (“Investment Banking Affiliates”), including, in the United States, BofA Securities, Inc., which is a registered broker-dealer and Member of SIPC, and, in other jurisdictions, by locally registered entities. BofA Securities, Inc. is a registered futures commission merchant with the CFTC and a member of the NFA.
Investment products: