If you are searching for a business account that meets your specific needs in Alabama, there are various options available.
Depending on whether you are just starting or are already in business, there are various factors to consider before choosing. For example, if you are starting, you might prioritize the cost of operating the account. Such costs may include monthly maintenance fees and transactional charges.
Look out for the basic account features, including the ability to deposit cash and checks, make withdrawals, check-writing capabilities, online and mobile banking access, and customer service support. After these, be on the lookout for other extra features that will meet your banking needs.
Consider the account minimums, such as the minimum balance requirements and the transaction limits, if any. Knowing this will help you avoid incurring extra costs that may come when you go over or below the set limits. Finally, consider other account extras such as bill payment services and wire transfer services.
We reviewed some of the best business checking accounts in Alabama based on the services, benefits, and cost. Use our comprehensive review to compare the options and find the best match for your business.
Relay offers a simple two-tier pricing plan. You can get started with no monthly fees and no account minimums. When you upgrade to the Pro plan, you’ll benefit from additional features such as free domestic and international wire transfers, or the ability to auto-import bills from QuickBooks and Xero.
Bluevine business checking comes with no monthly fees. Plus, the account provides an impressive list of benefits such as integration with online business tools, sub-accounts to help you manage your finances, and two free checkbooks.
Chase Business Complete Checking comes with Chase QuickAccept which allows card payments to be processed on your mobile device, so you receive deposits the same day to help manage cash flow within your business.
What we like
In person customer support (except Alaska & Hawaii)
Axos Bank business interest checking account earns a competitive rate for cash held within the account, and you'll get your $10 monthly fee waived by holding a minimum balance of $5,000. If you keep a decent amount of cash in your account, this could be an ideal account.
Lili’s business checking account comes with features that help users keep their banking costs low, optimize their taxes, and manage their business’s finances.
Novo allows easy integration with third-party accounting software, including Quickbooks and Xero. You can also link your Novo debit card to your Google Pay or Apple Pay Wallet. Novo also syncs with your Stripe processing account and easily integrates with Slack to get automated updates on your bank account.
If you are looking for a business checking account that is easy to use and with almost no fees, you might want to consider Novo. The bank account is also accessible in the app store for both iOS and Android devices.
What we like
Free ACH transfers, mailed checks, and incoming wires
NorthOne helps you manage your finances with its invoicing app, budgeting tool by creating an unlimited number of sub-accounts with the envelope functionality, and integrating with a suite of business tools and software.
What we like
Budgeting tool to help manage your finances
Smart integrations with business tools
Send invoices from the app
Low minimum deposit
No hidden fees
Unlimited transactions with no fee
What we don't
$10 monthly fee
No in persona customer support
Why do you need a business checking account?
Running a business requires some serious organization. One of the most important tools for this is a business checking account. They are specifically designed to help you manage your finances. Here are some reasons you should open one for your business:
Separate your personal and business finances: Your personal checking account may be overdrawn, but when someone pays you through your business account, the money will go directly into the bank without being touched by either you or your employees.
Manage Your Money: A business checking account can simplify your bookkeeping process by eliminating unnecessary transactions from your personal finances. You might think that paying for business expenses out of your personal bank account would be an easy way to keep things simple, but it can lead to sticky situations if someone else is handling your finances (like an accountant).
Avoid Fees: No one likes paying fees. With a business checking account, you’ll avoid many of the ones incurred at other types of accounts. Some of these are overdraft fees, paper statement fees, and ATM fees. The good news is that with a business checking account, you don’t have to worry about these types of fees. You also get to pick which bank offers the best features for your needs. Some good options are Ally Bank and Chase Bank.
Save on Taxes: It’s pretty obvious that not all of your expenses are deductible. But, when you use your business checking account, you can easily separate your business and personal expenses. This means you will know exactly how much you can deduct on your taxes.
Have access to funds faster: Some business checking accounts offer expedited access to funds, particularly those that come with an ATM card. With this option, you’ll be able to quickly withdraw money from an ATM without having to make an advance request or visit a branch. And if your account offers extended hours, you may be able to get money at any time—even on weekends.
You can easily track your spending: As a business owner, you are often responsible for paying contractors and other vendors. Since you don’t have direct access to employees’ payroll accounts, you need a way to pay these individuals regularly and accurately track your spending. A business checking account can do just that by providing online or mobile banking access so you can keep an eye on expenses in real-time.
What do you need to open a business checking account in Alabama?
Starting a business checking account for your business is no different from opening an account for personal use. There are some differences in the type of information you will have to provide. You will need to provide:
Business license: A business license is a legal document that gives you permission to operate your business. You’ll need one if you plan on setting up a legal entity, such as an LLC or corporation. A business license is different from a business registration, which is required in some states.
Tax identification number: In order to prove that you are a legitimate business, the bank will require your Tax ID Number (TIN). This could be an Employer Identification Number (EIN) if you are a corporation, partnership, or LLC. You will need to provide a Social Security Number (SSN) if you are a sole proprietor.
Business address – The address where you will be conducting your operations. This can be in the form of a PO Box or physical address within Alabama.
Proof of your identity (state-issued ID, driver’s license, or passport).
Business formation documents: Incorporation papers or Articles of Organization and Operating Agreement. These are filed with the Secretary of State as part of your business registration. A copy of the Articles must be submitted with your application for a merchant’s license and/or a seller’s permit.
Business credit report: If you don’t have established business credit, the bank might ask for a copy of your personal credit report.
Common business checking account fees in Alabama
The following are some common business checking account fees:
Monthly service fee: This is a charge that covers basic expenses like rent or mortgage, utilities, equipment, and supplies related to running the bank branch. This fee is standard for all non-interest checking accounts. Depending on what type of bank you choose, you may encounter monthly maintenance fees, which can be as low as $10 or as high as $50 per month.
ATM withdrawal fee: If you use an ATM that isn’t owned by your bank, you’ll likely have to pay a fee of $1-$3 for each transaction. To avoid this fee, find out where the closest ATM owned by your bank is. You will pay less.
Minimum balance fee: If you choose an account that requires a minimum balance, make sure that you’ll be able to maintain the balance required. Otherwise, this type of fee could cost you more than the actual checking account services.
Overdraft fee: Overdraft protection is sometimes offered by banks with business checking accounts. However, if you don’t opt for this service and overdraw your business checking account, you could incur an overdraft fee from the bank or another type of penalty fee, such as a returned item fee.
Account closure fee: There are some business checking accounts that charge a fee if you close your account before a certain period of time has passed or before meeting other requirements. Read the terms and conditions thoroughly so that you don’t pay an unnecessary charge when it comes time to close your business checking account.
Non-sufficient funds (NSF) fee: Banks charge fees for any checks that are stopped or returned unpaid. These fees usually apply if the account is overdrawn as well.
How to choose the best business checking account in Alabama
There are a number of things that you need to consider before you choose a bank, and most of these considerations will be based on your personal preferences.
Treatment of existing customers: Just because the bank is offering you a great deal does not mean that they are treating their existing customers fairly. It is important for you to check whether or not the bank has been treating its customers well in the past. It is also important for you to check if there have been any controversies regarding the bank’s employees and their inappropriate behavior. For example, they might be misusing customer information or neglecting customer support service.
Service charges: The best business checking accounts do not charge any service fees. If they do, they should have very minimal service charges. It is important that you check this out before you sign up with the bank. In some cases, the banks will offer interest-free checking accounts but will charge a high service fee if your account balance falls below a certain amount.
Checking account terms and conditions: One of the ways that banks make money is by charging high fees for services and transactions that are performed outside of the norm. For example, if you overdraw your account after making too many transactions, you will be charged a fee. This fee will usually be much higher than the standard fees that are charged for other transactions. It is important for you to check out the bank’s terms and conditions before you get an account with them. This way, you can avoid any unnecessary fees and other costs associated with the bank’s services.
Choose a fee-free account: Usually, you’ll pay a monthly fee for the privilege of using your business checking account. If you can find an account that doesn’t charge a monthly fee, it’s worth considering. Many accounts waive the monthly fee if you maintain a minimum balance, but if not it could still be an expense that’s worthwhile in terms of rewards and perks.
Online experience: If you’re more comfortable conducting business online, look for an account that offers robust online banking features.
ATM access: You want ready access to an ATM network, especially if you travel frequently for work or your customers do so on the regular basis.
Fees and service charges: Look for a fee-free option that gives you plenty of transactions without charging you more than you’d expect. Consider whether the perks and services justify any extra fees you’ll pay.
