Radius Business Checking: What You Need to Know
When you’re starting your business, choosing the right bank account is one of the first and most important decisions you’ll make with regard to your business finances. After all, opening a business bank account will help you separate your personal finances from your business finances—plus, you’ll use this account to manage your business funds on a day-to-day basis.
With this in mind, however, there are a multitude of business bank account options on the market, ranging from online-based checking accounts to accounts from traditional brick-and-mortar institutions. This being said, if you’re looking for the fastest and easiest way to open a business checking account, you’ll likely opt for an online-based option, like the Tailored Business Checking account from Radius Bank.
Is this Radius business checking account right for you?
This review is here to help you decide. We’ll break down everything Radius has to offer within their business checking suite—including features, fees, and more. We’ll also discuss a few top alternatives to this Radius business checking account—so that you have all the information you need to determine what’s best for your small business
Radius Business Checking Account Options
Radius is an online-based, FDIC-insured bank headquartered in Boston, Massachusetts. In addition to their robust product suite for personal finances, Radius offers a variety of solutions and services for businesses—including loans, savings accounts, and of course, business checking accounts.
Overall, Radius offers four business checking account options; however, we’ll be focusing on their Tailored Checking account—as this is the only business checking account they offer to general business customers.
Their other accounts—Relationship Checking, Account Analysis Checking, and Interest Checking—on the other hand, are mainly designed for Radius’ larger institutional clients.
Having made this distinction, let’s explore the Tailored Business Checking account in more detail.
Radius Tailored Business Checking Account
The Tailored Business Checking account from Radius Bank is designed to accommodate businesses of all shapes and sizes and can be opened quickly and easily online. In fact, according to the Radius website, the Tailored Checking account can be opened in 10 minutes or less with no documents required.
Additionally, one of the most unique features of this account is that it’s interest-bearing. The Tailored Checking account will earn 0.10% APY on account balances of $5,000 and up. A new perk is that Radius offers 1% cash back on online and signature-based “credit” transactions made with a Radius debit card—though the account holder needs to maintain an average monthly balance of $10,000 in order to be eligible. Let’s learn more about the features and fees of this account:
Minimum Opening Deposit
As we’ve mentioned, you can open this business checking account online—however, in order to do so, you’ll need a $100 minimum opening deposit. After this opening deposit, there will be no minimum balance requirement on this account.
This being said, however, Radius will charge a monthly maintenance fee on accounts with balances below $5,000. Plus, you’ll only earn interest on the Tailored Checking account if you have a balance of at least $5,000. Therefore, to avoid the $10 monthly fee and earn interest, you’ll want to maintain a balance of $5,000 on this Radius business checking account.
Radius is very transparent about where you will and won’t incur fees with their Tailored Business Checking account. First, you won’t pay any transaction fees, which includes: deposits and deposited items, ACH debits, ACH credits, checks paid, ATM transactions, and online banking transfers.
You also won’t face fees for:
- Mobile and online banking
- Mobile check deposit
- Electronic statements
- Radius Bank business debit card
- Bill pay
As we mentioned above, if you maintain a balance of $5,000 or more, you won’t have to pay a monthly maintenance fee—if you have an account balance under $5,000, however, your monthly maintenance fee will be $10.
In addition, there are a number of other instances where you will incur fees with this Radius business checking account. These include:
- Daily overdraft: $5 per day
- Deposited item reversal: $8
- Expedited ATM/debit card: $35
- Foreign item collection: $30
- Money order: $3
- Non-sufficient funds (NSF): $25
- Returned items: $25 per item
- Stop payment: $25
- Incoming domestic wire: $10
- Outgoing domestic wire: $18
- Incoming international wire: $10
- Outgoing international wire: $40
Radius does not charge fees for transactions with the Tailored Business Checking account. This being said then, you can make an unlimited number of transactions per month with no fees.
Once again, transactions in this case refers to deposits, ACH transfers, checks paid, ATM transactions, and online banking transfers.
With the Radius Tailored Business Checking account, you’ll have ATM access through two different ATM networks: MoneyPass and SUM. You’ll be able to use your free Radius business debit card at an ATM in either of these networks (22,000 ATMs around the U.S.) to withdraw cash or make a deposit (cash or check) with no fee.
This being said, however, it’s important to note that not all MoneyPass ATMs can accommodate deposits, so if you need to deposit cash or checks, you’ll want to use the MoneyPass locator to find a deposit-taking ATM near you. Along these lines, it’s also important to mention that any ATM deposit you make will be subject to a two-business-day hold before you have access to those funds.
Moreover, in addition to the network of fee-free ATMs, Radius also offers an ATM fee rebate to all business checking account customers. This means that you can use your debit card at any ATM where it’s accepted and Radius will rebate all non-network ATM fees you are charged each month. Radius will credit your account automatically for these fees at the end of each statement cycle.
The ATM fee rebate, however, does exclude international exchange fees—so if a bank charges you a currency conversion or cross-border transaction fee when using an ATM, you’ll be responsible for paying those fees.
On the whole, there are very few limits when it comes to depositing cash or checks with this account. As we’ve mentioned, you can deposit cash and checks using a participating ATM with no fees. Radius does not place a limit on the amount of cash you can deposit on a monthly basis.
Additionally, you can deposit checks at an ATM or using the Radius mobile app. Although Radius does not place a monthly limit on the number of checks you can deposit, they do have a limit of $5,000 per day for mobile deposit. You can, however, contact Radius to request an increase if necessary.
Unlike some business bank accounts, this Radius business checking account does not place a limit or provide an allowance for wire transfers. You can send and receive as many wires as you need; however, each wire will cost a fee—any incoming wire will cost $10, an outgoing domestic wire will be $18, and an outgoing international wire will be $40.
Mobile and Online Banking Features
Although we’ve mentioned some of the additional online and mobile banking features included in the Tailored Business Checking account thus far in passing, it’s worth breaking them down in more detail.
With this account, you’ll have access to both free mobile and online banking which includes:
- Radius business app with:
- Mobile wallet capabilities
- Account management including transfers, history, and alerts
- Mobile deposit
- Radius card app for debit card management
- 24/7 online banking with:
- Radius’ Autobooks invoice and payments platform
- Check ordering
- Bill pay
- Electronic statements
- Account and security alerts
- Customer service via chat, email, and phone—including 24/7 telephone automated banking
- Sign-up Bonus$0
- Minimum First Deposit$100
- Monthly Fee$10
- Balance to Waive Fee$5000
Radius Business Checking: Pros and Cons
Now that we have a better sense of what the Radius Bank business checking account can offer, let’s discuss how it compares to other accounts on the market.
Why should you choose a Radius business checking account over an alternative option?
Here are some top advantages and disadvantages to consider.
Pros of Radius Business Checking
When it comes down to it, the Tailored Business Checking account is fairly competitive with other online-based business bank accounts on the market. Overall, some of the top benefits of this account are that it’s highly accessible, interest-bearing, and offers great online and mobile banking tools.
As an online-based business checking account, one of the biggest advantages of the Tailored account is that it can be quickly opened online—and requires limited documentation. Additionally, once the account is opened, it can be managed 24/7 online or by using the Radius mobile app.
Moreover, whereas some online-based business checking accounts are inaccessible to business owners who deal with cash—the Tailored Business Checking account allows you to withdraw and deposit cash, with no fees or limitations, as long as you use an in-network ATM. Along these lines, the ATM fee rebate is a particularly noteworthy feature, as it allows you to have (essentially) free ATM access wherever you go. In fact, this feature is frequently highlighted in online Radius Bank customer reviews.
Plus, with unlimited free transactions, this Radius business checking account allows you to easily manage your finances on a day-to-day basis, without having to pay to do so.
Another top advantage of this business checking account is that it bears interest—with a fairly high APY. In this way, the Tailored account is a good balance between a checking and savings account for business owners who need the flexibility of a business checking account, but also want to earn interest on their funds—without having to maintain or save enough to actually invest in a separate savings account.
This being said, although there is a $5,000 minimum threshold in order to earn interest on the account, this is still a fairly low requirement in comparison to many high-yield business savings accounts. Plus, if you can maintain the $5,000 required balance to accrue interest, you have the added benefit of being able to waive the $10 monthly service fee.
Online and Mobile Banking Tools
Although most online-based (as well as brick-and-mortar) business checking accounts offer online and mobile tools, there are a few standout features of those included with the Tailored Business Checking account.
First, not only does Radius offer a business mobile app that allows you to manage your account on the go, but they also provide a dedicated debit card management app. The Radius card app allows you to turn your debit card on and off, restrict use based on location, set and manage a budget, and receive real-time updates and customized alerts.
This being said, in addition to the standard features included with the online banking suite, this Radius business checking account also includes Autobooks, an invoicing and payments platform. Instead of having to manage your invoices separately and connect them to your business bank account, Autobooks gives you the ability to create and send invoices, receive payments, and access detailed reports all in one place.
With all of this in mind, the Radius Tailored Business Checking account is a worthwhile option for a variety of business owners who need a flexible and affordable bank account—particularly those that are growing quickly and want to earn interest on their funds without a separate savings account.
Cons of Radius Business Checking
Despite these notable benefits, there are also downsides to this Radius business checking account, especially if you’re looking for the most affordable option, or conversely, looking for in-person access to your bank.
Let’s discuss further.
Although it’s unfair to say that the Tailored Business Checking account is expensive, the fees associated with this account are a huge downside in comparison to other online-based accounts on the market.
To explain, even though there are no transaction or ATM fees, Radius does charge for many other instances including all wires, NSF, and stop payments. Again, although these fees are common with bank accounts, there are several options, like NBKC, Novo, and Azlo that will not charge for some or all of these instances.
Additionally, although there technically is no minimum balance requirement after the $100 opening deposit, the Tailored Business Checking account requires that you maintain a balance of $5,000 to earn interest and waive the $10 service fee. Other online-based accounts (again, NBKC, Novo, and Azlo) will be truly free of minimum balance requirements and monthly service fees.
No Branch Access
Of course, as an online-based bank, Radius does not offer branch or in-person access for their customers (even though they do offer ATM access). This being said, if branch access is something you’re looking for in a business bank account, you’ll want to focus your search on brick-and-mortar options, like the Chase or Bank of America.
Top Alternatives to Radius Business Banking
Before deciding whether a Radius Bank business checking account is right for your business, it’s worth exploring some top alternatives to determine if any other options are a better fit for your needs. As we’ve mentioned in our discussion thus far, there are both online-based and brick-and-mortar competitors that may be better for your business, depending on your preferences.
This being said, let’s explore three alternatives you might consider:
NBKC Business Checking
If you don’t need an interest-bearing account and are looking for a Radius business checking alternative with fewer fees, the NBKC Business Account may be one of your top options.
In many ways, the NBKC Business Checking account is similar to the Radius Tailored Business Checking account—the NBKC account has no transaction fees, includes a free debit card, accommodates ATM access through the MoneyPass network, and provides free mobile and online banking tools.
This being said, however, there are a few distinct differences between these options. First, NBKC has no minimum opening deposit, no monthly service fees, and truly has no minimum balance requirement. Additionally, whereas Radius charges a number of fees for instances like returned items, overdrafts, NSFs, and stop payments, NBKC does not charge fees for any of these things.
In fact, NBKC only charges fees in two instances—sending domestic wires ($5) and sending or receiving international wires ($45). Incoming domestic wires are also free—compared to the $10 fee you’ll pay with Radius Business Banking.
Plus, if you do decide that you’d like to earn interest on your funds, NBKC also offers a Business Money Market account—which requires no minimum opening deposit, no monthly fees, yields a .25% APY, and only requires $0.01 to earn interest.
With all of this in mind, NBKC is a great alternative to Radius business checking for easy access to a free, online-based account with significant flexibility, almost no fees, and a competitive savings account option.
Bank of America Business Checking
If you’re looking for some of the flexibility associated with online-based business accounts, but also would prefer branch access, you might consider a business checking account from Bank of America.
Bank of America offers two different business checking accounts—both of which can be opened online (although you will need to fax or email certain documents to BoA to complete the application). With both of these accounts, you’ll receive access to all Bank of America locations, as well as ATMs, online and mobile banking, and cash-management tools.
This being said, both of the Bank of America business checking accounts have monthly service fees, $18 or $29.95, depending on the account. However, each account offers five different ways to waive the fee—more than any other brick-and-mortar bank on the market.
Additionally, although Bank of America does have transaction and deposit limits on both of their business checking accounts, the threshold is much higher than many competitors. To explain, with the most basic option—the Fundamentals Business Checking account—you receive 200 free transactions per month and a free cash deposit maximum of $7,500.
Plus, if you opt for the Business Advantage account instead of the Fundamentals, you’ll have higher transaction and deposit thresholds, as well as free incoming wires, no fees for stop payments, and the ability to add a Bank of America business savings account without an additional monthly fee.
All of this being said, the Bank of America business checking account options are wholly different than the Radius business checking account—however, if you’re looking for an alternative from a brick-and-mortar bank, you’ll find that BoA is certainly a top option.
The Bottom Line
At the end of the day, only you can decide which business checking account is best for your business—whether the Radius Tailored Checking account or an alternative option. This being said, if you’re looking for an affordable, highly accessible, and interest-bearing account, there’s no doubt that this Radius business checking account is a worthwhile choice.
On the other hand, if you think you’d benefit from a nearly free business checking account, or an account from a brick-and-mortar bank, or something different altogether, there are a variety of alternatives you can explore—from NBKC to Bank of America and beyond.
Ultimately, your decision should come down to your business needs and what features are most important to you—considering fees, transactions, deposits, tools, and more—and which business checking account can come closest to those ideal requirements.