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Navy Federal Business Account Review, Plus Top Alternatives

Sally Lauckner

Sally is the managing editor at Fundera. Previously, she was a senior editor at SmartAsset, a personal finance startup, and has held various editorial roles at the Huffington Post and AOL.com. She is passionate about financial literacy and educating small business owners.

The number of small business banking options out there can feel overwhelming. It’s not easy to figure out which business bank account might be best for your business, or even where to begin looking. If you’re an active military member or veteran, or a Department of Defense employee, you’re probably curious about what Navy Federal Business accounts offer. After all, credit unions offer tons of perks that commercial banks don’t.

Navy Federal business account options can be a great fit for entrepreneurs who qualify for membership. The credit union has several checking and savings options from which you can choose, ranging from small introductory checking accounts all the way to business certificate of deposit accounts to help maximize your business savings. Plus, you’ll get a ton of support from banking partners, and access to Navy Federal’s roster of small business owners who are looking to grow their company just like you are.

Here’s a rundown of every Navy Federal business account, and why they might be a perfect fit for your business banking needs. We’ll also dive into why business checking, savings, and CDs are great options for your company, and when you’ll want to open each kind of account to make your money go further.

Why and When Do You Need Business Checking and Savings Accounts?

One question we get often from small business owners is why they need a separate business bank account in the first place. This is particularly common from solo entrepreneurs or the owners of sole proprietorships. After all, the money coming into their business goes back to them personally when they pay themselves, so why open a separate account and go through all those extra steps?

The fact is that you should always keep personal and business finances separate, whether you’re an LLC partner or a sole proprietor. The main reason for this is liability: You need to set up entirely separate structures for your company to keep your personal assets away from legal or tax issues that could come up for your business. Plus, you want to make it easier to account for your company’s financial health easily. This becomes difficult (if not impossible) to do if you’re getting paid directly into your personal checking account.

The best place to start with small business banking is a simple business checking account. This will allow you to receive money from clients, pay for expenses, and manage the basics of small business finance. If you have money left over, open a business savings account next, so that you can earn interest on money you don’t need to have on hand for daily expenses. Lastly, consider opening a business CD if you have enough cash to put some aside and not have access to it for several months.

navy federal business account

Navy Federal Business Checking Account Overview

Navy Federal Credit Union offers three distinct checking accounts. Each caters to companies at different stages of financial growth, beginning with a straightforward no-frills checking account, and topping out with a feature-packed option for larger companies. Here’s what each Navy Federal business checking account offers, as well as details on which account might be right for your business.

For Smaller Businesses: Navy Federal Business Checking

Navy Federal’s Business Checking account provides the most introductory level of support and services, which is a great first account for most businesses that are just starting out, or who don’t need a ton of features (such as high transaction limits).

This account comes with a 0.05% daily dividend rate, which is a credit union’s way of paying back its account holders for owning a share of the company by virtue of having an open account. This Navy Federal checking option provides 30 free transactions per month, with additional transactions costing 25 cents each. You can have up to two signers on the account and scan deposits using your mobile device—all without a monthly fee.

For Medium-Sized Businesses: Navy Federal Business Plus Checking

Business Plus Checking takes Navy Federal’s introductory-level checking account and adds a few additional features that make it a great option for mid-sized small businesses. This account provides a little more flexibility and features for a low monthly fee.

You’ll get all of the same perks as the Business Checking account—such as the 0.05% daily dividend rate and mobile deposits. But you’ll also have 50 free transactions, with any additional transactions costing the same 25 cent fee. You’ll also be able to add unlimited signers onto the account, which is great for businesses with more than two partners or owners. This account comes with an $8 monthly fee.

For Businesses That Need a Feature-Packed Account: Navy Federal Premium Business Checking

Navy Federal Premium Business Checking is the credit union’s more feature-laden account, and is made with high-transaction companies in mind. The account offers 100 fee-free transfers every month, with the same 25 cent fee for any additional transactions thereafter. You’ll also get unlimited signers on the account and mobile scan deposits, just like you would with Navy Federal’s other two business checking accounts.

But what really sets Navy Federal Premium Business Checking apart is its variable daily dividend rates. You’ll get a rate of 0.35% a day if your daily average balance is between $0 – $9,999, a 0.40% rate with $10,000 – $24,999, or a 0.45% rate with $25,000 or more in your account. You can also avoid the account’s monthly $20 service fee with an average daily balance of $5,000 or more.

Navy Federal Business Savings Account Overview

Navy Federal doesn’t just offer solid business checking accounts. The credit union also has three distinct savings accounts for businesses, as well. Each savings account is structured slightly differently depending on the amount of money in the account, as well as how much freedom to withdraw funds that you’re willing to give up in exchange for a bigger interest rate.

For the Early Saver: Navy Federal Money Market Savings

Finding any amount to put into a business savings account is a challenge, given that most small businesses operate on a shoestring budget as it is. So if you’re just starting out, you’ll need an account that provides you with interest on a small minimum balance. Navy Federal’s Money Market Savings account does just that: In exchange for a $2,500 minimum balance, you’ll get competitive rates without term restrictions onn how much money you can withdraw.

For the Savings Savvy: Navy Federal Jumbo Money Market Savings

Maybe you’ve been squirreling away extra revenue for a while, and are in the market for an account that will help you put these savings to work for you. In that case, Navy Federal’s Jumbo Money Market Savings account might be right for you. The account offers competitive rates on balances of $100,000 or more, zero term restrictions, and retirement account functionality.

For the Entrepreneur Who Can Save for the Long Haul: Navy Federal Certificates of Deposit

CDs can help you maximize your interest rate on savings, if you’re willing to part with your money for a set period of time. Each CD comes with specific maturity dates, which means that you’re not allowed to withdraw your money until that time. Navy Federal offers terms ranging from three months, all the way up to seven years. The longer your terms, the higher your interest rate will be.

navy federal business account

Navy Federal Business Account Alternatives

Navy Federal offers great business banking solutions, but they might not be right for everyone. There’s a limitation on who can enroll, for starters—the credit union is only open to servicemembers, their families, and Department of Defense employees. If you can’t check off any of these boxes, you’re not going to be able to open a business account.

Alternatively, you might want to bank with an institution that has more branches across the country, which means you’ll want to expand your search.

For Small Business Owners Who Need Branch Access: Chase Total Business Checking

One of Navy Federal’s biggest drawbacks is that there are only a handful of branches in most states. If that doesn’t suit you or your business, you’ll want to consider banking with a company like Chase, which has tons of branches and ATMs throughout most of the country. You’re never far from a Chase branch no matter where you are, which makes business banking that much easier.

Chase Total Business Checking is a great option for anyone considering Navy Federal Business Checking or Business Checking Plus. The account comes with a $15 monthly fee, but this is waived with as little as $1,500 in the account as an average daily balance. You only have to deposit $25 to get started, and you’ll get 100 free transactions every month. Plus, Chase is offering a $200 sign-up bonus just for opening an account through our site.

For a Premium Business Checking Alternative: Chase Total Business Checking

Chase Performance Business Checking is comparable to Navy Federal’s Premium Business Checking account, as it provides account holders with 250 fee-free transactions (instead of only 100), as well as mobile check deposits and low monthly fees. Granted, you’ll have to keep an average daily balance of $35,000 to avoid the $30 monthly fee, but the accessibility and higher free transaction limit may make it worth it if you need a ton of support from your banking partner. You’ll also get a $200 signing bonus, which is a nice bit of change simply for opening an account.

For Those Who Want to Bank Small: Alternative Credit Unions

There are a slew of credit unions designed to help servicemembers and their families get the financial support they deserve from their banking partner. You’re not just limited to Navy Federal, as several similar credit unions also offer a variety of small business bank accounts. Check out our guide on some of the best credit unions for small businesses for more options.

Picking the Right Bank Account for Your Business

No matter which account (or bank) is right for you, make sure you understand what your needs are first. If you’re just starting out, your best bet is to go with a smaller, introductory-level account. You’ll avoid paying fees for services you don’t need, and won’t feel the pressure to keep your average minimum balance higher than it ought to be. If your business relies on tons of transactions and additional support, however, opt for an account that will fit your needs.

And don’t be afraid to compare banks and credit unions against each other. As with all things in life, it’s good to shop around.

Editorial Note: Any opinions, analyses, reviews or recommendations expressed in this article are those of the author’s alone, and have not been reviewed, approved, or otherwise endorsed by any of these entities.

Sally Lauckner

Sally is the managing editor at Fundera. Previously, she was a senior editor at SmartAsset, a personal finance startup, and has held various editorial roles at the Huffington Post and AOL.com. She is passionate about financial literacy and educating small business owners.

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