Frost Bank Small Business Account Review, Plus Top Alternatives

Sally Lauckner

Sally Lauckner is the managing editor at Fundera. Previously, she was senior editor at SmartAsset, a Y Combinator-backed personal finance startup. She has a decade of experience in digital media and has held various editorial roles at the Huffington Post, AOL.com, and Glamour magazine. Sally has a master's degree in journalism from New York University and a bachelor's degree in English from Columbia University. Email: sally@fundera.com.
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If you’re in the market for a new business bank account and you’re considering a Frost Bank small business account, you’re in the right place. It’s important to do your homework and shop around before you sign up for a business account. You’ll want to make sure the account serves to help you and your business. A business checking account should help make things easier and run more smoothly. It should not become a source of stress from trying to stay within your transaction limits or even money loss through pesky fees.

Frost Bank offers two business checking accounts, both quite different from each other. The Frost Business Checking account is like a standard business checking account, but chooses to charge fees in a slightly different, potentially more beneficial, way. The Frost Analyzed Checking account is made for more premium customers as it includes more perks and personal banker access.

Frost Bank is widely available online. Still, it may be more beneficial to open a small business checking account with the bank when you work close to one of their 130 financial centers in Texas. That way, you have access to in-person support should you need it.

Factors to Consider When Choosing a Business Checking Account

A big part of choosing the best business checking account for you and your small business is looking at what an account allows you to do. Business checking accounts come with different fees and limits than personal checking accounts, so it’s important to figure out what your business needs from an account. Are you just starting out and need a break on fees? Or are you riding a growth spurt and need the ability to make hundreds of transactions per month for free? Determining exactly what you need in a checking account will help you narrow down your many options.

Here are a few factors you should consider:

Fees

Most business checking accounts charge a monthly fee. (Not all do, however; check out our alternative accounts below). Frost Bank’s two business checking accounts both charge monthly fees.

Still, most checking accounts also offer a way to waive the fee—this is true of the Frost Business Checking account. Determine whether an account’s perks and allowances are worth the monthly fee it charges. Premium accounts tend to charge higher fees for more benefits, but those benefits lose their luster quickly if you’re paying a fee you can’t really afford.

Frost Bank also implements a rather unique fee structure pertaining to its transaction and deposit limits. Instead of charging per excessive transaction, Frost charges a flat fee for each range of transaction numbers.

Transaction Limits

Transaction limits are a big deviation from personal bank accounts. Business checking accounts typically limit you to a set number of transactions (ACH deposits, purchases, etc.) and a set amount in cash deposits per month. Each time you make a transaction/cash deposit over that limit, the bank with charge you extra. Again, Frost chooses to implement flat fees for ranges of limits on their Business Checking account. For example, making between 201 and 300 transactions in a month will cost $10 for each month. This gives you some flexibility, but can end up costing more if you’re on the lower end of the given range.

Balance Minimums

You will also want to weigh if an account has a minimum balance requirement. Typically, if it does, it means that you must maintain a minimum in order to avoid paying a monthly fee. This is true of the Frost Business Checking account: There are balance minimum requirements, but only in order to waive the monthly fee.

frost bank small business account

The 2 Frost Bank Small Business Accounts Reviewed

Both the Frost Bank Business Checking accounts include easily accessed online and mobile banking. For in-person access, you can use the Frost Checkcard at over 1,200 ATM locations and over 100 Frost financial centers.

Frost Business Checking

Monthly fees and limits:

  • $9 monthly fee, waivable with minimum balance
  • 200 free transactions per month
  • $5,000 cash deposits free per month

Best for:

  • Businesses with maximum 200 transactions
  • Account balances high enough to waive monthly fee

To get started with a Frost Bank Business Checking account, you’ll need to deposit at least $50. There is a $9 monthly charge unless you maintain a $3,000 minimum daily balance or at least $25,000 in combined average daily balances of personal and business accounts. Even if you do have to pay the monthly fee, the account includes access to a Frost banker and a High-Yield Money Market Account.

You can make up to 200 free transactions each month with a Frost Business Checking account. But instead of charging you a fee for every additional transaction, Frost Bank will charge a flat fee depending on the range of your transactions. So if you make between 201 and 300 transactions in a month, you’ll be charged $10 for that month. Making between 301 and 400 transactions will cost $20 and so on. The same fee structure applies to your cash deposits. The account allows up to $5,000 in cash processing for free each month. After that threshold, Frost Bank charges a fee, which starts at $5 and increases in $5 increments as your cash amounts get higher.

Although Frost Bank bills this account as tailored to your account activity, it can really add on to the cost of the account and bite into your budget. For example, if you’re making even 205 transactions per month, you’re paying a $10 fee for that on top of the $9 monthly fee (if you can’t waive it). This ends up costing more than just paying an extra $0.50 or so on each additional transaction you make.

Frost Analyzed Checking

Monthly fees and limits:

  • $20 monthly fee

Best for:

  • Business owners who need treasury services and management tools

The Frost Analyzed Checking account is better for businesses with more processes and money management. The account includes access to a group of personal advisors who are there to help you with your business’s cash flow, investments, and costs. You’ll also have access to Frost Treasury Management services, one of Frost’s online banking services (Cash Manager or My Frost), and a Business High Yield Money Market account.

Unlike the Frost Business Checking account, the Analyzed checking account earns interest on all balances, with slightly higher rates on higher balances.

The account charges a monthly fee of $20, which you cannot waive.

Top Alternatives to Frost Bank Business Checking Accounts

If Frost Bank Business Checking accounts don’t quite match your business checking account expectations, perhaps these top alternatives will do the trick.

Azlo Business Checking: Best No-Fee Option

Not into Frost Bank’s fee structure? With the Azlo Business Checking account, there’s barely a fee in sight. There’s no monthly fee outright, nor a minimum balance you have to worry about. There’s also no limit to the number of transactions you can make each month, which means you get to avoid the small excessive transaction fees that can pile up, as well.

Azlo is entirely online, which can be a downside to some. While you can withdraw cash through the Allpoint ATM network, you cannot deposit cash into your account. You also cannot send money wires through the account, but you can receive them.

Chase Total Business Checking: Best for Smaller Businesses

The Chase Total Business Checking account offers a big perk that neither Frost nor Azlo can provide: a $300 cash bonus. You just need to deposit at least $1,000 in new money and maintain that balance for 60 days and complete five qualifying transactions within 60 days to snag the reward. That’s a great way to earn some extra cash to boost your business.

The account itself is a bit more limiting than the Frost Business Checking account. You’re allowed 100 transactions per month, which works better for smaller business with fewer transactions. Plus, if you see yourself making only a couple extra transactions, if at all, Chase charges $0.40 for each transaction. You’re also allowed up to $5,000 in cash deposits each month without a fee.

There is a $12 monthly fee ($15 with paper statements), which can be waived with a minimum daily balance of at least $1,500.

Who Are Frost Bank Small Business Accounts Right For?

With only a couple business checking accounts, Frost Bank doesn’t offer much by way of options. Although the Frost Business Checking is designed to charge you based on your activity, its fee schedule can end up costing way more than other business checking accounts out there. It’s best if you stay under the free transaction and cash deposit limits to avoid paying way too much for a checking account. On the other hand, the Frost Analyzed Checking account is made for more established businesses that need more premium business and money management tools.

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.

Sally Lauckner

Sally Lauckner is the managing editor at Fundera. Previously, she was senior editor at SmartAsset, a Y Combinator-backed personal finance startup. She has a decade of experience in digital media and has held various editorial roles at the Huffington Post, AOL.com, and Glamour magazine. Sally has a master's degree in journalism from New York University and a bachelor's degree in English from Columbia University. Email: sally@fundera.com.

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