Axos vs BlueVine — Which Online Checking Account Is Meant for Your Small Business?

Do You Need a Business Checking Account?

If you are a budding entrepreneur who wants to take your business to new heights and make it your main source of income, then you are in need of a business checking account.

How Does a Business Checking Account Differ from a Personal Checking Account?

On the surface, personal and business checking accounts seemingly have no differences. However, there are certain features that come with business checking accounts that are not offered in personal accounts.

Why Do You Need a Business Checking Account?

When you are running a business, having a separate record of your business finances makes sense for multiple reasons. Even as a side hustler, maintaining a separate checking account for your finances is a good idea.

Simplified Taxes

While legally, you are not required to have a business checking account from a tax standpoint, it is still considered a smart idea.

Efficient Accounting

A separate business checking account lightens the pressure of bookkeeping. You will get better insight into the performance of your business. It will also be easier for you to monitor cash flow across a dedicated account.

Liability Protection

With separate checking accounts, you can protect your personal assets from any liabilities associated with business assets. This is an advantage if, for instance, someone decides to sue.

A Stamp of Credibility

Opening a business checking account shows a professional side of your small business. Even if your small venture began as a hobby, you will add a touch of credibility to it when your payments are undertaken through an account stamped with the name of your business.

Future Growth

Regardless of your plans to expand your business down the line, maintaining a checking account opens up your options for growth. For example, if you require funding like a business loan in the future, it will be easy for you to apply for one since your business has a stamp of legitimacy.

How to Choose a Business Checking Account?

Before you dive into the world of business checking accounts, you should be aware of what to look for when choosing an account.

Online Access

Does the bank of your choice provide a business checking account with online access? There are online-only institutions that are excellent for small business owners who are comfortable with digital banking. They provide numerous benefits, including the ability to conduct business from anywhere at any time.

Interest

Some banks offer higher interest in their business checking accounts than others. This is mostly seen in online-only banks since these institutions forgo a physical location for added features at a lower cost and a higher benefit to you.

Fee Structure

When choosing a business checking account, it is of the utmost importance to look into their fee structure. These vary vastly. While you will be levied minimal fees at one institution, another might charge you exorbitant fees for the same service.

Minimum Requirements

Most banks have a minimum requirement for an in-account balance on a monthly or yearly basis. While some require a minimum deposit to open your account, others require you to maintain a certain balance moving forward.

Transaction Limits

Banks have certain limitations, such as the number of transactions you can do per day or month. Once you use up all your fee-free transactions, you will be levied a certain fee to continue additional transactions.

Cash Deposits

Besides transaction limits, you also have to look into limits for cash deposits. Some business checking accounts in online institutions offer no cash deposit service. If your business does not operate in cash-only mode, then this does not affect you.

Incentives

In addition to the above features, look for banks whose business checking accounts come with bundled services and perks.

Accessibility and Customer Care

Another thing you need to make certain of is that you have proper access to your funds. When opting for a business checking account, make sure that the bank offers a wide network of fee-free ATM networks for easy access to your money.

Axos vs BlueVine — Which Ranks Higher?

As a budding entrepreneur myself, I have been on the hunt for the best possible banking solutions for my business. While it is grueling to wade through the vast market of choices, it is rewarding in the end when you land on the perfect choice.

About Axos

Axos Bank came into being in 2000 as Bank of Internet USA. It has since made a mark in the digital banking industry. While it initially only offered basic checking account features, it has since become a full-service digital bank. Currently, there are two types of business checking accounts under its umbrella of service.

Pros

● You will find many account types for your business, including checking, savings, CD, and market accounts.

Cons

● The Business Interest checking account requires you to maintain a balance of $5,000 a day. Failure to do so will incur a monthly maintenance fee of $10.

About BlueVine

BlueVine offers online banking solutions for small businesses. It took its place in the neobank world in 2013. Neobanks are online banks that combine technology and security to provide financial services similar to conventional banks.

Pros

● BlueVine does not charge you any monthly maintenance fees, nor does it charge you any minimum balance fees.

Axos vs BlueVine

Has the above section made a choice clear for you? The pros and cons should help narrow down the top pick of the two.

Services

A customer gauges the worthiness of a bank by the number of relevant services it provides. As someone who runs a small business, what are some services that are tied to your business’s financial support?

Interest Rates

Online banks offer higher interest rates than conventional banks since their overhead costs are minimal. This feature is highly beneficial to business owners since it adds to their savings.

Incurring Costs

Most Axos accounts do not levy a maintenance fee. However, failure to maintain a daily average balance in some accounts comes at a cost. Additionally, the bank charges ATM fees each time you use a system out of the network.

Minimum Balance

There are no minimum balance requirements across Axos accounts. However, some require a minimum opening deposit. For instance, a savings account requires an amount of $250 to open an account.

Transaction Curbs

Axos is restrictive with its transactions. You can only do up to 200 fee-free transactions per month.

Customer Support

Axos have customer support around the clock. If you have any banking queries, you can get in touch with them 24/7. This service is accessible via mail, phone, and mobile app.

The Takeaway

Both Axos and BlueVine have services designed for small business owners. Their checking accounts are based on an online platform. However, their services differ from each other.

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