A business account can help you better manage your finances. With dozens of banks in Iowa offering a wide range of business checking accounts, the challenge is to find the right one for you.
When choosing an account, start by considering the basic services provided. These include in-branch, online or mobile banking services, check writing capabilities, wire transfers, among others. Aim to find an account with services that your business needs to run smoothly.
The other factors to consider are the account fees, requirements and transactional limits. Find an account that minimizes your costs. For example, search for accounts with no maintenance fees, free deposits, minimum initial deposit, and minimum balance requirements. Keep an eye out for transactional limits, as some banks may apply a fee if you go beyond the set limits.
Some banks offer additional benefits and perks with their business checking accounts. These include introductory offers and bonuses, together with other business resources and tools. For instance, some banks may offer free financial advisory services to guide you in growing your business.
The process of shopping around and comparing the available options can be quite challenging. To make this easier for you, we reviewed some of the available options based on their services, fees and benefits. Compare our top picks for the best business checking account in Iowa to find the best fit for your business today.
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?
A business checking account is a safe and efficient way of managing your business funds. It offers many benefits, some of which include:
Keep track of expenses: One way you can be savvy about managing your finances is by keeping track of expenses throughout the year. A business checking account gives you this option by allowing you to monitor how much money is being spent each month on specific categories such as gas, advertising, or equipment purchases. This means that if you have an unexpected expense in the future, you’ll know how much room you have in your budget and won’t have to worry about overspending.
Security: Business checking accounts are generally more secure than personal accounts, so you have a lower risk of identity theft when you use your business checking account.
Automatic transactions: You can choose the features that suit your business and the way you run it. For example, you can set up automatic payments to go out each month, or arrange for cheques to be automatically deposited into your account so you don’t have to worry about remembering to mail them in every time you need to pay someone.
Overdraft protection: This means that if you don’t have enough money in your account to cover a purchase or payment, the bank will lend you what you need and charge an interest rate for the privilege of doing so. This might seem like a bad idea at first glance, but in practice, it can really get you out of the hole when your business really needs money.
Business accounts are FDIC insured: This means that you don’t have to worry about losing money if your bank fails, as long as you don’t exceed your deposit insurance limit.
Tidier bookkeeping: Your business checking account will probably come with a number of useful reports, including payroll and bank statements. These reports help keep track of your financial situation and make it easier to take care of tax-related matters.
Flexibility in how you run your business: You can use the funds in your business account at any time and for any purpose, be it salary or acquiring new equipment, or paying suppliers. Having this sort of flexibility can be very useful when running a small business.
Remote deposits and online banking: Both of these options make it easy for you to deposit checks from anywhere in the world, saving you time and travel expenses. With online banking, all financial transactions can be performed online, making banking simple and efficient.
What do you need to open a business checking account in Iowa?
There are a number of things that you may need in order to open a business checking account. Remember that the bank or financial institution that you choose will be your partner for many years, so make sure to find one that is right for you.
To open an account for your new business, you’ll need:
TIN/SSN: You will need your TIN (Tax ID Number) in order to open a business checking account. Your Tax ID Number is also necessary if your business is incorporated.
Business Name and Address: You will also need to provide the name of your business and its address. If you have already registered your company with the state, you may be able to provide the state filing number in place of a physical address on your application.
Bank Statements: You should carry copies of your most recent three months’ bank statements with you when you visit your bank or financial institution in person. These statements should reflect deposits, withdrawals, and other transactions made on behalf of your business.
A Certificate of Incorporation.
Proof of address for the business and yourself: You’ll likely need bank statements, utility bills, and other documents to prove that you are where you say you are.
Your Social Security number: This will be used on all tax forms and reports filed with the government after your bank account is opened.
Common business checking account fees in Iowa
Here is a quick overview of the most common types of fees and how they can affect your business:
Minimum balance fee: If there is not enough money in your business checking account, a minimum balance fee will be charged.
Stop payment fee: If you no longer want to pay for an item with a check, but it has already been paid for and the check has been sent out, then you will have to pay a stop payment fee to order the bank to stop the transaction.
Monthly service fee: This is typically a flat monthly fee charged for basic checking accounts. It ranges from about $10 to $30, but some institutions charge as much as $45 a month.
Overdraft fee: Overdraft Fees: Some banks will charge overdraft fees if your account doesn’t have sufficient funds available and a transaction is approved anyway. Overdraft fees may vary depending on your bank, but they often range from $10 to $35 per transaction.
Wire transfer fee: Banks can charge up to $35 per wire transfer if you want them to send money from your business checking account to someone else’s bank.
Paper Statement Fees: The vast majority of small businesses are on a cash basis and don’t need monthly statements mailed to them. But if you want one, you’ll have to pay for it — usually $2 or more per statement.
How to choose the best business checking account in Iowa
There are some things to consider before choosing the best business checking account:
Fee-free banking: If you have a smaller business with minimal requirements for banking services then it might be worth considering a free or fee-free service. However, if you do require access to certain services then it’s best to find an account that includes these rather than paying for them separately.
Overdraft facilities: As well as looking at the overall cost of your chosen account, make sure that any overdraft facilities meet your needs. Overdrafts are useful in some situations but they can lead to hefty charges if not used correctly – make sure that you know how they work.
Access to cash: If you’re in a bind and need money right away, you don’t want to have to wait on checks to clear or wait hours for your money to be available at an ATM machine. As a result, consider how quickly customers could access their funds when choosing the best accounts for businesses.
Working hours: make sure that the bank is accessible 24 hours a day and has plenty of ATMs in your area. You also want to make sure that it will be easy for you to deposit checks, as well as transfer money into and out of your business checking account.
