Business Bank of Texas Review for 2019: Is It Right for Your Business?

Brian O'Connor

Contributing Writer at Fundera
Brian writes about finance, business strategy, and digital marketing. He has worked at Morgan Stanley, Foreign Affairs magazine, Student Loan Hero, and as a partner of a small consulting firm, too. Combined, these experiences allow him to offer a unique perspective on the challenges small business owners face.
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If you’re planning a new small business, money is definitely on your mind. Whether that means spending it or making it, one of the biggest considerations any entrepreneur has to make is where to store it. And finding the right business bank account isn’t so simple. There are a ton of considerations to make when selecting a business checking account, including whether you want to go with a bank that has tons of branches, lots of perks, or a local option that offers hands-on support for small businesses. 

If you’re starting a business in Texas, you may have come across the Business Bank of Texas and are wondering if this regional bank is the right fit for you. Even if you’ve been looking at larger, nationwide business banking options, you may want to consider Business Bank of Texas as well. Local business banks are small operations that may not have hundreds (or thousands) of branches, but what they lack in size they often make up for in value. Most local banks offer unrivaled client support, which goes a long way when you’re starting a new business. 

Whether you’ve already read a Business Bank of Texas review or didn’t have this bank on your radar, there’s a ton to consider. We’ll walk you through what Business Bank of Texas has to offer, what options might work for you and your business, and will help you figure out the right business bank account to get you started.

Business Bank of Texas: The Basics

Business Bank of Texas offers the kind of banking support that commercial ventures need, all while offering a hands-on approach to client management and customer service. Unlike most financial institutions that offer personal business and checking accounts, Business Bank of Texas focuses exclusively on supporting business enterprises (as the name might suggest).

The bank itself is somewhat small in size, with $98.2 million in cash deposits. This may not be as large as some of the larger institutions with business banking accounts, like Chase or Wells Fargo, but that can serve as an advantage as a consumer. As a business-centric, regionally focused bank, the Business Bank of Texas can give their clients more attention and care for their specific banking needs. You may not necessarily get round-the-clock customer service the same way you would with a bigger bank, but the attention you get during business hours is likely to be pretty robust.

The Business Bank of Texas offers business checking accounts and savings accounts, as one might expect. Checking and savings accounts come with online banking and mobile deposit options too, which lets you bank from anywhere—just like you would with a larger banking institution. The Business Bank of Texas also includes treasury management services, cash management, and commercial lending. This means that you can use Business Bank of Texas as a one-stop shop for all of your company’s small business needs.

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Business Bank of Texas Account Features

With the basic details under our belt, let’s go into more of the specifics about what Business Bank of Texas accounts offer for small business owners. There are also a few options for small business owners that aren’t specifically checking or savings accounts, but are still useful to cover as well. 

The first thing to know about the Business Bank of Texas is that, like with most small business banks, you need to complete the application process in person. There are a few online business banks that let you fill out a business bank application online without having to drop by a brick-and-mortar location to finish the process, but they’re the exception to the norm. Still, this is a consideration you might want to factor in if you’re not close to a Business Bank of Texas branch. 

There are a few banking options provided by the Business Bank of Texas. Each offers a different strategic advantage and serves a unique business purpose, whether you’re looking for a place to store your operating capital or want to maximize your cash reserves with interest-bearing accounts. Here’s more on each of the account types currently available.

Business Bank of Texas Remote Deposit

Just because the Business Bank of Texas is small doesn’t mean that it can’t provide the most up-to-date features and capabilities of a larger banking institution. This is particularly evident within the Business Bank of Texas Remote Deposit account. With this checking account, small businesses conduct all of their banking transactions online—no deposit slips or trips to the bank required. 

This remote deposit account can be a great option for small businesses that don’t need to deposit cash often. The same is true for business owners who are digitally inclined and not afraid to leave all of their banking duties to a digital interface. The good news is that this account offers plenty of tech support in case things go awry, and even lets account holders make deposits up until 6 p.m. and have them count against their day’s balance.

Business Bank of Texas Analyzed Checking

Analyzed Checking is the Business Bank of Texas’ standard business checking account. With Analyzed Checking, you’ll be able to bank online and take care of almost all of the same functions you’d take care of at a local branch. Except for making cash deposits, of course. 

This account is geared toward business owners’ accounts with a minimum average balance of $25,000, which is a bit higher than you’d have to hit with the entry-level Chase or Bank of America accounts. For example, the Chase Total Business Checking and Bank of America Business Fundamentals Checking accounts only require a minimum balance of $1,500 to waive each account’s monthly fee.

Business Bank of Texas Insured Cash Sweep

Businesses that need to keep a balance of more than $250,000 and want to keep their money fully insured (as FDIC protections max out at this threshold) may want to consider opening an Insured Cash Sweep account with the Business Bank of Texas. 

This option is made for multi-million dollar accounts, and comes with plenty of perks in exchange for keeping a high balance. You’ll earn interest on your money, have access to cash quickly, and still have insurance against the total sum within the account. This is a great middle-ground between having the flexibility of a checking account with the trust and security that comes with FDIC insurance.

Money Market Deposit Account

The Business Bank of Texas provides a money market account in addition to their business checking offering. These accounts can be a great option for companies that have excess cash but want to still have access to funds in case they need them in short order. In the case of the Business Bank of Texas’ Money Market deposit account, you’ll earn interest on your balance and can avoid monthly fees with a $25,000 minimum average balance.

Money market accounts can provide business owners with an excellent option for rounding out their portfolio of bank accounts. Checking accounts work best for keeping cash flow under control, while money markets help entrepreneurs make their money work harder through interest payments. Any money market account with a competitive interest rate can be a great option, and the Business Bank of Texas is among some of the best options. 

Certificate of Deposit (CD) Account

If you want to truly maximize your money and don’t need immediate access to your excess funds, a certificate of deposit (CD) can be a great way to lock in interest rates over a set period of time. CDs offer interest rates that are typically higher than your standard savings account, since they require you to deposit cash over a period of several months (or even a year or more). If you don’t need to access all of your money at a moment’s notice, CDs might be the right choice for you. 

The Business Bank of Texas CD account offers competitive rates and client-friendly terms. Although you may not necessarily want a CD to be the only account you open with this bank, it certainly serves as a great accompaniment to other checking or savings accounts with the Business Bank of Texas. 

Merchant Account Services

The Business Bank of Texas doesn’t just provide checking and savings solutions for your small business. This bank also offers merchant services, which help your business conduct credit card transactions online and in-store. There are tons of merchant services providers on the market, which makes for a pretty competitive market. As such, the devil is in the details as far as which merchant services provider you go with.

The Business Bank of Texas differentiates itself by being a local provider, rather than a national merchant services provider. This means you’ll get more attention when things like fraud or chargebacks happen, and will be able to get help that’s only a phone call or email away. They offer competitive fees for card swipes and transactions, low-cost credit card readers and equipment, and help educate small business clients on best practices with credit card transactions.

business bank of texas

How to Know If Business Bank of Texas Is Right for You

One additional component of figuring out if the Business Bank of Texas is the right business bank for you is understanding what a good bank actually means. And, most importantly, what a good bank means for your business, since your needs as an entrepreneur and businessperson are unique to the way your business is set up.

There are several crucial questions you’ll need to ask yourself to figure this out. Let’s go through the most important ones:

1. What kind of checking account do you need?

The most basic service of most business banks is a checking account. But some banks offer different tiers of checking accounts, which enable entrepreneurs to access varying numbers of things including transactions, wire transfer, deposits, etc. (Generally, the higher tier your account is, the more features you’ll get.) These higher-tier accounts often come with a fee, however, which can only be waived through keeping certain balances. 

Why should you care? Choosing the right business bank for checking entails taking a look at the account offerings. Analyze what features are rolled into a checking account, and understand whether or not they’ll be sufficient (or even too much) for your business. You’ll want to make sure you’re not going to be using too many—or too few—of the account services, so you don’t end up paying fees you shouldn’t.

2. How often will you be handling cash?

Often, whether or not you need a physical branch near you depends on whether you handle cash in your business. If you’re not in the Greater Austin area, but you find that your clients pay in cash often and you need to make a lot of deposits, then maybe Business Bank of Texas (or any other bank that doesn’t have a local branch) isn’t for you.

However, you may be in a situation where you rarely handle cash, if at all, and having a brick-and-mortar location falls to the bottom of your list of priorities. Either way, you’ll want to give a thought to how you do business in order to find the best bank for your needs.

3. Do you need expanded service offerings?

Some banks don’t just offer checking accounts. Many of them offer additional features including savings accounts, high-yield savings vehicles, merchant services, and even lending options for qualified business owners. 

If you’re just looking at getting a basic checking account, then these things might not be a consideration for you. But if you’re at the stage in which you’re growing a business, then you might want to consider not only what your company needs right now, but what you’ll require as you’re going forward.

Business Bank of Texas: Top Alternatives

The Business Bank of Texas offers some competitive banking options for small businesses in Texas, but it may not be the right fit for everybody. If you need a small business banking partner with a ton of locations and ATMs, for example, then Business Bank of Texas isn’t going to work for you. Same goes for enterprises with branches and operations outside of Texas. Here are a couple of Business Bank of Texas alternatives to consider.

For Online-Only Banking: Axos Basic Business Checking

Since Business Bank of Texas doesn’t have branches outside of its central location, you may be open to online-only business bank accounts rather than banks with heaps of locations in your area. There are plenty of benefits to opening an online account, as they usually offer certain account perks (lower account minimums to waive fees, ATM fee reimbursements) that other banks might not include.

If you think that an online business bank might work for your needs, the Axos Basic Business Checking account can be a great fit. The account’s $10 monthly maintenance fee is waived with a daily balance of $5,000, which is more than manageable for many businesses. Better still, you’ll even get paid interest on your checking balance as well. You may not get brick-and-mortar locations, and can’t deposit cash, but you will get access to ATMs across the country, 50 free items, and 60 deposits every month through the Axos mobile app.

For Easy Access and ATMs: Chase Total Business Checking

Chase is one of the largest providers of business banking services in the country. You’re likely to find a Chase location or ATM wherever you are across 34 states, which is a must-have for businesses that need a wide-ranging network of locations for transactions on the go. There are several options to choose from with Chase, and Chase Total Business Checking is a great entry-level solution.

Chase Total Business Checking comes with low monthly maintenance fees. You only have to pay $15 per month to keep the account in good standing, and this fee is waived with a minimum balance of $1,500. You’ll also get 100 transactions every month for free, as well as the ability to make $5,000 in cash deposits every month without incurring a fee. If you need more fee-free perks for your business and still want to keep things with Chase, there are other options that might work better for you—so long as you can meet the minimum requirements to keep from paying account fees.

Business Bank of Texas: The Bottom Line

There are a ton of different business bank providers out there to choose from. Making the right choice can feel like a big task—maybe even an impossible one. The good news is that all of these options actually work to your benefit so long as you’re willing to do a little research. This is true of large national banks as it is for regional banks, and the Business Bank of Texas is no exception. So if you’re looking for a local bank that offers perks and products on par with other national accounts, then Business Bank of Texas might be right for you.

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Editorial Note: Fundera exists to help you make better business decisions. That’s why we make sure our editorial integrity isn’t influenced by our own business. The opinions, analyses, reviews, or recommendations in this article are those of our editorial team alone. They haven’t been reviewed, approved, or otherwise endorsed by any of the companies mentioned above. Learn more about our editorial process and how we make money here.

Brian O'Connor

Contributing Writer at Fundera
Brian writes about finance, business strategy, and digital marketing. He has worked at Morgan Stanley, Foreign Affairs magazine, Student Loan Hero, and as a partner of a small consulting firm, too. Combined, these experiences allow him to offer a unique perspective on the challenges small business owners face.

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