Bank of America vs Chase Business Accounts: Which Is Right for You?

Cody Cromwell
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How are Chase business and credit cards different?

When you think of credit cards, there are two big brands that come to mind: Visa and MasterCard. Then there’s American Express. And then there’s…others. These lesser-known banks, as well as credit unions and local banks, tend to employ different approaches and offer different rewards when it comes to dealing with their cards. These cards may or may not be accepted as forms of payment or debited by merchants.

As an example, take a look at the bank of America, or BoA, and the Chase credit cards. BoA is a major financial institution. It was originally known as the Bank of North America, first established in 1799. It’s self-proclaimed mission is “to help meet the credit needs of others, by partnering with businesses and individuals to deliver financial solutions and advice.''

In addition to the BoA brand, BoA operates as Visa and MasterCard credit card issuers and offers a wide range of credit cards with a variety of credit limits and rates of interest.

Chase Bank is a wholly owned subsidiary of JPMorgan Chase and has a different mission. Chase Bank is “To serve our customers, and our communities and clients, by being a trusted financial partner, through our expanded branch network and investments within the broader communities we serve.''.

Question 1

Chase Business Accounts or Bank of America Business Accounts?

The first key difference to keep in mind when comparing Bank of America and Chase Business Accounts is the cost. When you first sign up for a business account with Chase, you are able to cash out rewards that you’ve accumulated from your spending. If you do not spend money to earn Bank of America Business Rewards points (or B.A.R. points), then you must have a checking account to pull money out of to pay your bills.

Most people like the idea of earning extra rewards on their business account: paying bills with points, paying employees with points, or even paying yourself and your other family members with points. Although, there are some account holders who want the flexibility to choose which bank to use for personal needs or to use for large purchases because of a potentially lower cost of providing business account services.

Note: All of the below examples reflect standard fee structures. To determine if your business account is fee free, you must add up all the fees and taxes you currently pay for using any bank account.

How many employees work for your business?

Before you start comparing the Monthly Service Charges that are charged by these two financial institutions, your business' number one priority should be to keep its business expenses minimal. It's a known fact that larger businesses often waste more money than businesses with a small number of individuals. And in most cases, the reason for spending more is the number of employees and the number of checks processed in a given time.

However, should your business have a lot of employees, then the monthly service charges from both institutions will not make any difference at all. But If you have to choose between the two institutions, then it would depend on your business needs.

Question 2

Is business banking different than personal banking?

In some ways, yes, but not necessarily in a bad way….

The most obvious difference is that most business accounts offer ACH and wire deposits and payments.

Checking accounts and savings accounts don’t offer these options, and in fact, many of them don’t even offer direct deposit at all.

This opens up the opportunity for businesses to offer these options at a lower cost than personal customers.

In the end, business accounts are simply accounts dedicated to a specific purpose.

For example, you might have a business savings account for work related funds, and a separate checking account specifically for personal accounts.

It’s important to know that you will generally get fewer banking services if you choose a business account as your primary checking account, though they are great for business owners who need a separate –work side” of the bank. It’s designed for small business owners that need a specific type of service.

So for business owners, a business checking account is a great way to get direct deposit at a greater savings, and business savings accounts can be specifically tailored for small business owners.

These accounts can even offer credit cards, which are great if you have additional needs outside of business.

How many monthly transactions do you need to make?

This is the most important question to ask yourself. You can transfer funds from your checking, savings, credit card, and debit card accounts to a business checking account. But you can’t transfer funds directly to a business savings account unless you’re a private banker. Some people will need to make several transactions each month to make it worth it, whereas others will need to do very few. Since your business will probably be growing at a slow pace, you won’t need an account that can handle enough transactions to make up for the lack of fees, but you also don’t need an account that’s going to have you paying high fees to make up for the lack of activity. This is also why the Chase Business 360 account is a great option. That way you can have the flexibility of a checking account, but any transactions you make won’t be counted towards your monthly transaction requirements.

Question 3

Which Bank Is Better for Your Bill Paying Needs?

On average, how much cash do you deposit each month?

Nowadays, people have a variety of different ways in which they manage their money. Some of them choose to set aside a set amount of cash each month and just leave it alone in their bank account until the bank statement arrives in the mail. Others prefer to have a more hands-on approach to their personal finances when it comes to saving, spending, and planning for the future. Fortunately for you, there are specific accounts that can suit your needs – and an account from either one of these major banks should work nicely.

Bank of America Business Cash Back
This account is designed to help you earn rewards on your business spending. Customers with the Bank of America Business Cash Back account earn cash back on select business purchases. There’s no annual fee for the account, and it’s available to customers with a business checking account at a small business branch.

Chase Sapphire Preferred
If you’re seeking a bit more flexibility in how you manage your finances, check out the Chase Sapphire Preferred business credit card. This card doesn’t charge an annual fee, and features a low APR on purchases and balance transfers. It also carries a zero liability on fraudulent purchases, which means that the cardholder will never be responsible for fraudulent charges on the account. The card comes with a range of other benefits, including travel insurance.

Which account should you choose?

When to Choose Each Type of Account

Banks and financial institutions offer several types of accounts. Each type of account has different fees and requires different maintenance.

Before opening your account, you need to decide which type of account is right for you and what features you need. So, what kind of account should you open? We hope the information below can help you decide which type of account is right for you.

Note: Credit unions differ from banks and offer special features and benefits. For more information, see our post about credit unions.

Bank of America vs Chase: Basic Checking Accounts

Due to the name, bankers might have you believe that Bank of America business accounts are more high-end and geared towards business owners. This is a common misconception. Considering they are both regional banks with similar prices and services, does Bank of America offer anything that Chase doesn’t?

Below we compare Bank of America vs Chase, their accounts and their pricing.

What are Bank of America Business Accounts?

With Bank of America Business Accounts, customers receive a large number of benefits which allows them to spend a significant portion of their time on other tasks.

In addition to checking and savings accounts offered by Chase and other banks, Bank of America has a different variety of checking accounts which makes it more valuable to some customers.

Some of their benefits include:

Business Cards

Every Bank of America business account comes with business cards which allows cardholders an opportunity to fundraise for non-profit organizations and get it go towards a specific cause.

Wire/Wireless Transfers

Wire/Wireless Transfers help businesses manage cash flow by enabling them to send money directly to almost anyone and anywhere.

ATM Locations

ATM Locations are also available and easily accessible, which makes it more convenient for customers to receive their funds when needed.

Bill Payment Service

Bank of America vs Chase Basic Account Overview

Bank of America (BOA) and Chase are two of the biggest banks in the United States. Unfortunately, Chase is not quite as well known as BOA and many Americans are unsure which one to choose. In this article, we will compare the basic bank account features of each bank with the goal of helping you choose the best bank for you.

For simplicity’s sake, we will will be comparing the Chase Basic and BOA Preferred accounts, but much of what is discussed will also apply to the BOA Premium Account. There are slight differences between the accounts, but they are subtle enough not to make much of a difference in the long run.

Bank of America vs Chase Bank Basic Account Costs

For personal banking, you can choose between Bank of America (BoA) and Chase. Let’s examine the costs and features of each.

Bank of America is the most challenged bank in recent history. They have been plagued by scandals and have been forced to pay millions after costing customers money due to fees. You can read more about them in our –bad bank” article.

Upon downloading the BoA mobile app, you are asked to give access to location. This allows the bank to track your physical location. You can no longer find protected Google searches on the BoA mobile app.

BoA offers free online banking, but no mobile app. Their website is the only way to access your account. Also, you can download the BoA mobile app, but there’s a catch. You’ll have to opt-in to give the bank access to your location which allows the bank to track your movements. If you download the BoA mobile app, be sure to verify the app using your mobile phone number as a further security measure.

Other than that, BoA offers free online banking. But you’ll have to jump some hurdles in order to use it.

Bank of America vs Chase: Midtier Accounts

While both Bank of America and Chase are major financial institutions, they often compete with one another for some of the same accounts. This is especially true for midtier accounts, which may include savings accounts with high rates and business accounts that offer one of the widest product portfolios on the market. If you’re looking to open a account at either bank, which one should you choose? Here is a look at each bank’s strengths in the midtier market.

Bank of America

Bank of America is the larger of the two banks, so its name carries more weight in the minds of consumers. In addition, Bank of America offers a wider range of business accounts.

Bank of America Business Checking Account: The Bank of America Business Checking Account is an excellent option for new businesses with no credit history. The account offers everything you need to manage business expenses, from free online banking to direct deposit and convenient locations near a customer base.

It’s one of the more attractive business account options when it comes to the flexibility of access. While the account does have a standard branch window and ATM access, it also has online, mobile and telephone access.

Bank of America vs Chase Midtier Account Overview

Bank of America was the first bank to offer business accounts and these accounts are now called the Bank of America Business Advantage Account. As banks have shifted to Chase and other competitors to stay competitive, Bank of America has also introduced and updated their mid-tier business accounts.

And if you’re looking to open a business checking account to help manage your business finances, you’re sure to be confronted with hundreds of options.

In this article we’ll compare Bank of America’s Business Advantage Account with other popular business accounts, such as the Chase Business Platinum account. We’ll also discuss how these accounts differ and which account you should choose if you work with multiple businesses.

Bank of America Business Advantage Account

The Bank of America Business Advantage Account is a bank account designed exclusively for small business owners. The account is designed to suit the needs of businesses looking to manage their accounts online, track expenses, request statements online, and save on business fees.

These business features are attractive to small businesses, however, some business owners may not want to manage their business finances online. In other cases, business owners may prefer to stay outside the Bank of America network and use a different bank for their business.

As a relatively new account, the Business Advantage Account offers business owners a number of benefits such as:

Bank of America vs Chase Midtier Account Costs

Chase Platinum Business Checking

And Chase Business Credit Cards – Related Topics:

  • Are Chase Business Checking Account and Chase Business Credit Cards Compatible?
  • Can I Get a Business Checking Account with a Credit Card from Bank of America (BAC)?
  • Can I Open a Business Checking Account with Bank of America?
  • Can I Get a Business Checking Account with an Online Checking Account from Chase?
  • Can I Get a Business Checking Account With My Financial Credit Score?
  • Can I Open a Business Checking Account With My Financial Credit Score?
  • Can I Open a Business Checking Account With My Financial Credit Score?
  • Can I Use Financial Credit Score for Opening A Business Checking Account?
  • Can I Use Financial Credit Score for Opening A Business Checking Account?
  • Can I Use My Financial Credit Score to Open a Business Checking Account?
  • Can I Use My Financial Credit Score to Open A Business Checking Account?
  • Can I Use My Financial Credit Score to Open a Business Checking Account?
  • Can I Use My Financial Credit Score To Open A Business Checking Account?
  • Can I Use My Financial Credit Score to Open a Business Checking Account?
  • Can I Use My Financial Credit Score To Open A Business Checking Account?
  • Can I Use My Financial Credit Score to Open a Business Checking Account?
  • Can I Use My Financial Credit Score to Open A Business Checking Account?
  • Can I Use My Financial Credit Score to Open a Business Checking Account?

Chase Platinum Business Checking Account Overview

The Chase Platinum Business Checking Account features such conveniences as 24-hour access to online banking, a host of customer support options from 24-hour phone support to email, as well as free estimated statements to make sure you’re accurately billed. It’s also a great account for bill pay as well as online banking.

These are wonderful accountability tools for small business owners, so it’s a must-check when choosing a checking account.

Chase Platinum Business Checking Account Costs

Chase offers a variety of ways to manage your personal and business finances. One of its best products is the Chase Platinum Business Checking. This account comes with a payroll option, direct deposit capability, mobile and online banking features and the ability to receive deposits directly into the account, thanks to the Chase Business Online and mobile checking deposit application.

Bank of America vs Chase Cost Comparison Calculator

Bank of America or Chase?

It’s no secret that you can save money on a personal checking account or a small business checking account by comparison shopping. Here’s where it gets complicated: the two industry leaders with the most complete comparison refunds – J.P. Morgan Chase and Bank of America – offer significantly different market products.

There are two reasons why banks pay customers back for opening accounts with them or in-branch locations:

  • High profit margins means they can offer customers the best checking accounts and still maintain healthy profits.
  • It’s a great way to generate referrals and cross-sell other products.

Chase has been able to maintain a sturdy profit given their business focus and the fact that they are competing with the industry’s top player, Bank of America.

Chase has several different business checking account options, from online banking to banking by phone to the – Chase Business Edge – suite of products.

Bottom Line

Choosing the right bank account for your small business can be complicated and very confusing. For this reason, it’s important to understand all of your options before you decide on which bank to use for your business.

Does Your Business Need an Account?

A business account may or may not be required, but the bottom line is that you’ll need to give some thought to how you’ll handle any business transactions. You can open a business checking account, a business savings/passbook checking account, as well as a business debit card account. When choosing your account type, it’s important to determine whether your business needs it.

There are two factors to consider:

Your business will deal with a certain number of transactions per week. A business debit card account can be quite handy if your business uses only plastic cards, such as Costco. Your business can’t be a member of a credit union, but you can use a business credit card and then submit business expense reports for tax reimbursement.

So, If a Business Debit Card Is Not Required, Does It Still Make Sense to Open One?