Free Business Checking Key Terms

Discover some key terms for free business checking

Lots of businesses could benefit from a free business checking account—but how many of these checking accounts are really free? There are a lot of factors to consider when choosing checking accounts, including those for business holders. Reading up on the terms regarding requirements, standards and methods for getting free or low-cost business checking can help savvy business customers get the best deal on a business account, with minimal fees and penalties.

 

No minimum balance

First, for a free business checking account to be truly free, it should have no minimum balance. A minimum balance is a set amount that must be in an account to keep it from accruing fees. This is common in both business and personal checking accounts as a way for banks to recoup money.
Try: See a definition of a minimum balance at AllBusiness. Look for free business checking with no minimum balance at sites such as Richmond Biz Sense.

Automatic savings plans

One feature of new free business checking accounts is automatic savings plans. An automatic savings plan automatically puts aside a portion of the money deposited to your checking account, where it will accrue interest.
Try: Investopedia offers an in-depth definition of automatic savings plans.

Check card or debit card

A check card is a physical "credit" card connected to a checking account. When used, the check card debits amounts directly from the checking account. A free business checking account can include a check card for convenient purchasing.
Try: Visa, one of the largest providers of debit cards, outlines its benefits.

Internet banking

Internet banking goes by many aliases, including e-banking, online banking, paperless banking and more. Generally, Internet banking is any kind of banking that can be done online, allowing the account holder to avoid going to a physical branch.
Try: See a great in-depth discussion and definition of Internet banking at Bankers Online.

Service charge, or service fee

Service charges are another thing to look out for with free business checking accounts. Service charges can be applied for a number of reasons according to an account contract. Read the fine print to check for these additional charges.
Try: Countrywide Bank has a chart outlining its service fees.

Interest-bearing accounts

As you research free business checking, you should be aware that some checking accounts are interest bearing and others are not. Interest-bearing accounts are checking accounts that pay interest. This can be a big factor for businesses that hold a large balance in a checking account on a continual basis.
Try: Find out more about interest-bearing checking accounts at CareOne Credit Counseling.

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