Kabbage Business Checking Review 2022

Kabbage Checking is a good choice if you want a free, online account that earns a competitive interest rate.

Updated on December 20, 2021
Advertiser Disclosure

One of the small-business services currently offered by Kabbage is their checking account, which is a free, interest-earning product available to businesses across the United States. You can sign up quickly and easily online and manage your account from the same platform as Kabbage Funding and Kabbage Payments.

If you’re looking for an affordable, online-based business bank account, Kabbage may be a good choice for your business. If you do a lot of cash business or want to integrate your checking account with third-party tools, on the other hand, you may want to explore alternatives.

Overview of Kabbage Checking

Pros:

  • No monthly fees, overdraft fees, or minimum opening deposit
  • Unlimited fee-free electronic transactions
  • Earn 1.10% APY on balances up to $100,000 as of this writing
  • Reserves feature allows you to organize your funds or plan for specific goals

Cons:

  • Fee of up to $4.95 per cash deposit
  • No reimbursements for out-of-network fees charged by ATM owner/operator
  • No joint accounts
  • No integrations with third-party business tools (e.g., invoice software, e-commerce software)

Best for: 

  • Business owners that prefer to manage their finances online and don’t need access to a bank branch
  • Business owners looking for a simple, free, and interest-earning checking account
  • Freelancers, self-employed business owners, single-member LLCs
Checking Account

Checking Account

Kabbage Checking
5Fundera Score
Apply Now
on Kabbage 's secure website
Checking Account
Apply Now
on Kabbage 's secure website
  • Min to Open

    $0

  • Signup Bonus

    $0

  • Monthly Fee

    N/A

  • No Fee Balance

    N/A

Kabbage Checking Account Details

Kabbage only offers one business checking product, Kabbage Checking. Because Kabbage is not a bank, the accounts are provided by Green Dot Bank and FDIC-insured through that institution up to $250,000.

Below are the features and fees included with the Kabbage Checking account.

Account Fees

  • No monthly fees
  • No minimum opening deposit
  • No overdraft fees

Transactions

  • Unlimited electronic transactions (ACH transfer, online bill pay, direct deposit, mobile check deposit)
  • No transaction fees
  • No fees for incoming domestic wire transfers
  • $25 fee for outgoing domestic wire transfers

ATM Access and Cash Deposits

  • Fee-free access to 19,000 ATMs across the U.S for cash withdrawals
  • No fees for out-of-network cash withdrawals; ATM operator may charge a fee
  • Deposit cash at nearly 90,000 participating retail locations, such as CVS, Walgreens, or Walmart, by presenting your Kabbage debit card at the register. Up to $4.95 per cash deposit (varies by retailer)

APY

  • 1.10% on balances up to $100,000 as of this writing

Online and Mobile Banking

  • Manage account through online dashboard and/or Kabbage mobile app
  • Free mobile check deposit; you must enroll in this service and you may be subject to additional identity verification
  • Reserves feature within your account that allows you to create up to five free sub-balances to organize your funds or budget money for specific goals
  • Ability to connect your Kabbage Checking account to Kabbage Payments (to accept customer payments) or Kabbage Funding (to get a business line of credit) to manage multiple services in one place
  • Sync your account to Kabbage Insights to track your cash flow and forecast future performance

How to Get a Kabbage Business Checking Account

To open a Kabbage Checking account, you must first create a Kabbage login. Once you’ve logged into your dashboard, you can complete and submit your business checking account application.

Kabbage will ask for basic details about you and your business, such as address, industry, federal tax ID, and Social Security number. You’ll need to include personal information for any individual that owns 25% or more of your business.

After you’ve submitted your application, Kabbage may ask for additional verification information, such as a driver’s license or business formation document. Once your application is approved, you can fund your account by bank transfer or direct deposit.

Learn more about how to open a business bank account online.

Benefits of Kabbage Checking

Fee-Free

Kabbage is a free, online business checking account with no minimum opening deposit, no transaction fees, and no overdraft fees. Kabbage doesn’t charge for incoming domestic wires and gives you fee-free access to in-network ATMs.

In addition, Kabbage does not charge out-of-network fees for cash withdrawals—although the ATM operator may charge a fee.

Competitive APY

Kabbage Checking earns a high-yield 1.10% APY on balances up to $100,000 as of this writing. There is no minimum balance required to earn interest, and interest is also accrued on all of your funds that are held in Reserves.

Similar online business checking accounts, like LendingClub and BlueVine, do not currently offer as competitive interest rates as Kabbage.

Kabbage Product Suite Integration

If you want to manage multiple financial services through one provider, you can use Kabbage for payments and funding—in addition to business checking.

Through Kabbage Payments, you can accept credit card payments from your customers using a custom pay link, or create and send customized invoices. With Kabbage Funding, you can apply for a business line of credit up to $150,000. If approved, you can manage your account and repayments through the Kabbage dashboard.

You can also connect your Kabbage Checking account to Kabbage Insights, which will allow you to monitor your cash flow patterns as well as create and analyze financial forecasts based on your account data.

Drawbacks of Kabbage Checking

Fees for Cash Deposits

If you want to deposit cash into your Kabbage Checking account, you can do so at over 90,000 retailers around the country—but those retailers may charge a fee of up to $4.95 per deposit.

Businesses that have a lot of cash sales may prefer an alternative account, like NBKC, that does not charge cash deposit fees.

No Integrations With Third-Party Tools

Although Kabbage Checking connects to tools within the Kabbage suite of products, it does not integrate with third-party solutions, such as accounting software, invoicing software, or e-commerce software.

Some competitors, like NorthOne, for example, directly integrate with popular tools such as QuickBooks Online, Wave, PayPal, Shopify, and Stripe, among others.

Poor Customer Service Reviews

Kabbage offers customer service by phone and email. The support phone line is available Monday through Friday from 8 a.m. to 9 p.m. ET.

Recent online reviews of Kabbage across different websites, however, mention a poor experience with their customer service. These reviews touch on multiple products that Kabbage offers, including their business checking account.

Many reviewers mention that customer service is difficult to get ahold of, and others mention having problems with transfers or deposits that were not resolved by trying to work with the customer service team.

Top Alternatives

If you want to consider a business checking account with free cash deposits, third-party integration capabilities, or in-person banking access, one of these alternatives could be a good fit.

Checking Account

Checking Account

Bank Novo
4Fundera Score

Great For: Digital banking and integration with additional business tools.

Apply Now
on Bank Novo's secure website
Checking Account
Apply Now
on Bank Novo's secure website
  • Min to Open

    $50

  • Signup Bonus

    $0

  • Monthly Fee

    N/A

  • No Fee Balance

    N/A

Checking Account

Checking Account

Chase Business Complete Checking℠
5Fundera Score

Great For: New businesses looking to open an account with a traditional bank.

Apply Now
on Chase's secure website
Checking Account
Apply Now
on Chase's secure website
  • Min to Open

    $0

  • Signup Bonus

    $300

  • Monthly Fee

    $15

  • No Fee Balance

    $2000

Checking Account

Checking Account

NBKC Business Checking Account

Great For: Nearly fee-free, digital business checking account with cash deposit.

Apply Now
on nbkc's secure website
Checking Account
Apply Now
on nbkc's secure website
  • Min to Open

    N/A

  • Signup Bonus

    $0

  • Monthly Fee

    N/A

  • No Fee Balance

    N/A

The Bottom Line

If you’re looking for a free, simple checking account to manage your finances online, Kabbage Checking may be a good option for your business. Kabbage Checking has a competitive interest rate, nationwide ATM access, and stands out with its ability to connect to the rest of the Kabbage product suite.

Businesses that are looking for joint accounts, third-party integrations, free cash deposits, or more comprehensive customer service will likely want to consider other accounts.

For additional options with no monthly fees, check out our guide to the best free business checking accounts.

Randa Kriss
Senior Staff Writer at Fundera

Randa Kriss

Randa Kriss is a senior staff writer at Fundera.

At Fundera, Randa specializes in reviewing small business products, software, and services. Randa has written hundreds of reviews across a wide swath of business topics including ecommerce, merchant services, accounting, credit cards, bank accounts, loan products, and payroll and human resources solutions. 

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