Axos Basic Business Checking
Axos Business Interest Checking
Finding the right business checking account can be challenging. While you may be tempted to go through the bank or credit union that you do your personal banking with, branching out and comparing other options can help you score some excellent features.
Axos Bank offers three great examples in its Basic Business Checking, Business Interest Checking and Analyzed Business Checking accounts. Here’s what you need to know about each business bank account and how to determine which is the best for you.
Business Bank Account Bonuses: $100 Promo
You shouldn’t decide which account to choose solely because of its bonus, but it can be the cherry on top if the account has a lot of great features. With the Basic Business Checking and the Business Interest Checking, though, you can earn a $100 bonus when you open a new account. Here’s how the Axos business checking bonuses work.
Basic Business Checking Bonus
You’ll earn $100 when you open an account by June 30, 2021 and keep an average daily balance of at least $5,000 for the first three months. Apply the promo code EARN100 on your secure online application.
They have to be new funds, which means if you already have an Axos Bank account, personal or business, you can’t simply transfer money to this one to make your initial deposit.
Business Interest Checking Bonus
If you’ve incorporated your new business after June 1, 2020, you can earn a $100 bonus when opening a new business bank account. Just use promo code NEWBIZ100 on your secure online application. Business must be incorporated after June 1, 2020 and application must be submitted before 11:59pm on June 30, 2021 to qualify.
Additionally, in the first two months after account opening, the average daily balance of the account must be at least $2,500 in order to qualify for the $100 bonus.
Also, because some people do open bank accounts just to earn bonuses, it’s important to note that there’s a $50 fee if you close your account within the first 180 days from account opening.
But if your small business has enough cash on hand to meet that daily balance requirement and you’re impressed by the account’s other features, the bonus is just another incentive to sweeten the deal.
Axos Bank Business Checking Accounts
Axos Bank offers three business checking accounts, each with a different set of features and fees. Here’s what you need to know about each one before you apply.
Basic Business Checking
If your small business is new or doesn’t generate a lot of sales yet, the Basic Business Checking account may be right for you. There is no monthly maintenance fee like there is with many business bank accounts. The account offers unlimited domestic ATM fee reimbursements if you venture outside of the bank’s ATM network — though the network includes roughly 91,000 machines throughout the country.
There’s also no minimum balance requirement, but the minimum deposit to open the account is relatively steep at $1,000.
When you first sign up, the first 50 checks are free. However, Axos Bank limits you to 200 fee-free transactions each month. Beyond that, you’ll pay $0.30 per item. If you’re looking for a small-business checking account with no monthly fee, this one stands out compared to most alternatives.
And remember, if you open your account by June 30, 2021, you’ll get a $100 cash bonus if you maintain a daily balance of $5,000 or more over the first three months. Sign up here to qualify and use the promo code EARN100.
Business Interest Checking
Another business checking account from Axos Bank, Business Interest Checking offers an impressive annual percentage yield (APY) of up to 0.81% on your deposits. Here’s how the tiers work based on your balance amount:
- 0.81% if your balance is between $0 and $49,999.99.
- 0.50% if your balance is between $50,000 and $249,999.99.
- 0.20% if your balance is $250,000 or more.
The account’s monthly maintenance fee is $10, but you can get it waived if your average daily balance is at least $5,000.
Like the Basic Business Checking account, this one gives you unlimited domestic ATM fee reimbursements, giving business owners a lot of flexibility to access their cash.
But while this account charges a monthly fee that can be waived, it only offers 50 fee-free transactions every month. After that, you’ll pay $0.50 per item. The minimum deposit to open an account is $100.
Analyzed Business Checking
If your business has significant transaction volume, the Analyzed Business Checking account may be right for you. The account offers a generous earnings credit rate (ECR) on your deposits, plus access to treasury management services that you can use to manage your small business finances.
The monthly maintenance fee is $15, and it’s not possible to get it waived as with the Business Interest Checking account. There’s also no reimbursement benefit for ATM fees.
But your first 50 checks will be free, and you’ll get up to 50% off your first order of checks after that. The per-item fee for transactions isn’t set — instead, it will be based on an analysis of your account with Axos Bank.
This account is for relatively large small businesses that need access to more sophisticated treasury management services. For most business customers, though, the other two will provide enough for your needs.
Other Axos Bank Business Products and Services
In addition to three checking accounts, other Axos business banking products include:
- Business Money Market account: You’ll get an APY of 0.50%, regardless of how low or high your balance is. You can also get up to 20 transactions for free every month, after which there’s a $0.30 per-item fee. The money market account offers the flexibility of ATM access and check-writing privileges — you’ll get your first set of checks free. But you need to maintain $5,000 in the account to avoid its $10 monthly fee. There’s a $1,000 minimum deposit to open the account.
- Business Savings account: Also offering a 0.50% APY, this account has a lower minimum balance requirement at $2,500. However, if you fall below that amount, you’ll be charged a $5 monthly maintenance fee. You’ll also get hit with a transaction fee if you have more than 20 items per month. The minimum opening deposit is $1,000.
- Business Premium Savings account: If your small business has a lot of cash on hand, this account may be for you. You’ll earn a 0.50% APY on balances over $24,000, but there is no monthly maintenance fee or minimum balance requirement. That said, the minimum deposit to open the account is a steep $25,000. The same per-item fee applies after 20 free transactions.
- Business Certificate of Deposit (CD): CDs are designed to offer higher interest rates when you commit to leaving your cash in the account for a long period. For Axos Bank, that can range from three months to five years. However, the APY maxes out at 0.40% on this account, which is worse than all of the other interest-bearing checking and savings accounts for small businesses. So it may not be worth it.
Unlike many banks that offer business products, Axos doesn’t offer small-business credit cards. That said, you can get the following financing options:
- Commercial line of credit
- Commercial term loan
- Equipment financing
- Commercial real estate bridge and construction loans
- Small balance commercial real estate lending
- Residential warehouse lending
- Lender finance
Depending on what type of financing you need to grow your business, Axos Bank may be able to offer some options to help. Before you apply, though, make sure you compare other lenders and loan offers.
And if you need a business credit card for your everyday business operations, there are plenty of cards you can choose from. Many of them offer big sign-up bonuses and high rewards rates, and some will even give you an introductory 0% APR promotion on new purchases, which can be handy if your cash flow is irregular.
Should You Get an Axos Business Checking Account?
Axos Bank offers some impressive checking accounts. If you want to avoid ATM fees, earn interest or get access to premium merchant services, there’s an option for you with Axos.
However, there are also some downsides to consider. For starters, Axos is an online-only bank, which means there’s no easy way to make cash deposits. You can technically send them via snail mail, but Axos Bank recommends against it because of the potential of the money being lost in the mail. If your business handles a lot of cash, the lack of cash deposits is likely a deal-breaker.
But if you’re a banking customer who doesn’t need brick-and-mortar branches for cash deposits and other in-person services, an online-only bank like Axos can suit all your needs.
Also, while it’s possible to get an account with no monthly maintenance fee and two of the bank’s business checking accounts reimburse domestic ATM fees, the bank does charge an overdraft fee. That’s a standard fee among many banks and credit unions, but there are some business bank accounts that don’t charge it.
Finally, Axos Bank doesn’t offer any accounts that give you unlimited free transactions. So if you have a lot of volume but don’t need an expensive bank account, you’ll want to look elsewhere.
Before you apply for a small-business checking account, take some time to compare it to others that are available. Some other online options include Bank Novo, NBKC Bank and BlueVine. All of these online banks offer excellent business banking products with no monthly maintenance fee.
If you’re looking for a small-business checking account from a traditional bank, U.S. Bank offers an account with no monthly fee.
The Bottom Line
If you’re thinking about getting a bank account for your small business, there are several options to choose from. Axos Bank can be a solid choice for internet-based businesses that don’t do any cash transactions. But it won’t be a good option if your company handles cash frequently.
Among the three business checking accounts available, business owners should consider what their needs are and how much they’re willing to pay. Even with the Business Interest Checking account offering a way to get the monthly fee waived, maintaining that high of a balance can be a big ask for many small business owners.
If you want to try out Axos Bank, you can open a Basic Business Checking account and get the $100 bonus while you get a feel of whether it’s right for you. Just remember that there’s an early closure fee if you close within 180 days, so it’s a good idea to take your time to determine whether it’s the right small business banking service for you.