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With all the attention paid to maximizing credit card benefits, it’s easy to forget that checking accounts can play an important role in finances, too. As a business owner, if you choose a business checking account that’s the wrong fit for your needs, you could find yourself paying hefty fees. That’s where we come in. Our reviews of business checking accounts can help you compare fees, limits, and benefits. In this review, we’ll break down the three Hancock Bank business checking accounts, as well as describe top alternatives to each account. Let’s get started.
Business checking accounts with words like “essential” and “basic” in their names are typically geared toward new businesses and small businesses, and the Hancock Bank Essential Business Checking account is no exception. If you own a small business or are a sole proprietor, you probably don’t need a high cash deposit limit or a high monthly transaction limit. And if you’re a new business, you might not have the kind of cash flow security that can accommodate an account with a high minimum balance requirement.
The Hancock Bank Essential Business Checking account requires a $50 minimum initial deposit, but after that there is no minimum balance requirement and no monthly service charge. Your transactions on the account are limited, however. Up to 100 transactions per month will be free, as will up to $5,000 in monthly cash deposits. After 100 transactions, a fee of $0.50 for each transaction over 100 will kick in. The charge for exceeding the cash deposit limit is $0.15 per $100.
Monthly fees and limits:
Online business checking account Azlo has a lot to recommend it as a starter account, too. There is no minimum deposit required when opening an account, no monthly fee, and no minimum balance requirement. Bank-to-bank (ACH) transfers are free, as are incoming wire deposits. And that’s not all. There is no transaction limit on the Azlo account, so you don’t have to worry about incurring fees for exceeding a transaction limit.
The downside of this online-only account stems from its nature as a branch-less account. You won’t be able to process cash deposits on the account, so if you get paid in cash all or part of the time, this probably isn’t the account for you.
Open an Azlo Account
As you might have gleaned from the name, the Hancock Bank Interest Business Checking account lets you earn interest on the balance in your account. This benefit kicks in for balances over $2,500, with tiered interest rates for higher deposit amounts. If you hate the thought of the money in your business checking account just sitting there without earning you any return, you may find this interest-bearing account intriguing.
The minimum deposit to open an account is $50, and there is no monthly service charge for your first 30 days as an account-holder. After that, you’ll owe a monthly service charge of $25 unless you can maintain an average daily balance of $25,000, or $50,000 across all your deposits and loans with the bank. This $50,000 limit includes your personal accounts, too.
Axos Business Interest Checking is another option for business owners who want their business checking account balances to earn them some interest. The Axos account has a $100 minimum opening deposit. After that, you’ll have to maintain a $5,000 minimum average daily balance requirement to waive the $10 monthly maintenance fee.
The transaction limit on the account is lower than on the Hancock Bank Interest Business Checking account, at 50 free transactions per month. However, if you don’t have a high transaction volume and you’re really just looking for the best deal on your interest payments, it’s worth reaching out to the banks to compare the interest rates they’re offering.
Open an Axos Account Now
Last up on our rundown of the Hancock Bank business checking accounts is the Hancock Bank Preferred Business Checking account. The Hancock Bank Preferred Business checking account has the same $50 minimum opening deposit as the other accounts from the bank. There is no monthly service charge for the first 30 days. After that, a $15 monthly service charge will apply unless you can maintain an average daily balance of $5,000 in the account.
Alternatively, you could waive the fee by maintaining a combined balance of $25,000 across your loans and deposits with the bank (excluding personal accounts), by making $2,000 in monthly business credit card purchases, or by having an active Merchant Services account with Hancock Bank.
The best part of the Hancock Bank Preferred Business Checking account is the high limit on both free transactions and free cash deposits. If your monthly transactions tend to fly fast and furious and you find yourself dealing in large amounts of cash, this account could be a good fit for your needs.
Looking for an alternative to the Hancock Bank Interest Business Checking account? We get it. It’s always good to comparison shop. An alternative you may want to consider is the Chase Performance account. This account comes with a $300 welcome bonus. You’ll need at least $25 as an opening deposit. Once you have an account, a monthly fee of $30 will apply unless you can maintain a minimum balance of $35,000.
You’ll get 250 transactions free per month, plus unlimited electronic deposits and incoming wires. The free cash deposit limit is $20,000 per month. If you’re running more of a midsize business and you don’t need quite as many free transactions as the Hancock Bank Preferred Business Checking account offers, the Chase Performance account could be more your speed. It’s geared toward midsize businesses.
Open a Chase Performance Account
Each of the three Hancock Bank business checking accounts does something a little different. Before you decide between one of the three accounts, the alternatives we’ve discussed here, or another account entirely, it’s worth doing your homework. How many transactions do you make in a month? How much cash do you deposit? What’s your average daily balance? Armed with the answers to these questions, you’ll be able to make an informed decision that can help you maximize benefits and minimize fees.