Opening a business checking account is a foundational step toward building your small business. With a business checking account, business owners can decrease personal liability and dodge potential tax problems by separating their personal finances from those of their business. Not to mention, a business bank account makes it easier to track income and expenses, which will come in handy when tax season arrives. As your business grows, a business checking account will also allow you to delegate banking tasks to employees.
To fully reap the benefits of a business checking account, however, it’s important to find an account that closely aligns with your business’s banking needs. One option is IberiaBank, a bank founded in New Iberia, Louisiana, in 1887. The bank is best for businesses in the Southeast, as this is where IberiaBank has the majority of its nearly 200 bank branch offices. Branches are located throughout Louisiana, Arkansas, Tennessee, Alabama, Texas, Florida, Georgia, South Carolina, New York, and North Carolina. You can enter your zip code or city address into the IberiaBank locator to find out if there’s a branch near you.
IberiaBank has a wide range of business checking account options for small business owners. There are a total of five business accounts to choose from: Free Business Checking, Business Interest Checking, Choice Business Checking, Preferred Business Checking, and Commercial Checking with Analysis. The accounts have varying transaction limits and other distinguishing features, such as competitive interest rates, to meet a range of business owners’ needs.
Choosing the Best Business Checking for Your Small Business
As you’re sifting through the business bank account options, there are three features in particular to note: transaction limits, balance minimums, and fees. Although there are other additional services and features to take into consideration, these are arguably the most telling in determining whether an account is right for your business.
Here’s what to look out for more specifically:
Transactions
When you’re selecting your business checking account, it’s good idea to first gauge your estimated transaction volume. Many business checking accounts offer a certain number of transactions at no cost and then charge a set fee per transaction thereafter. IberiaBank Free Business Checking allows up to 500 transaction items per statement period. You won’t be charged if you surpass this limit. However, if you make more than 500 transactions over two statement periods within a 12-month period, your account will automatically be converted to a Business Checking Plus account. Business Interest Checking, on the other hand, has a transaction limit of 300 items and charges for each subsequent transaction. Choice Business Checking offers the first 500 items for free.
For both Preferred Business Checking and Commercial Checking with Analysis, IberiaBank says they work with businesses to “build the best solution” for them. The bank does not provide much information on either of these accounts on their site. Generally, Preferred Business Checking is for businesses with limited transaction volume, whereas Commercial Checking with Analysis is better for businesses with higher transaction volumes.
Balance Minimums
Business checking accounts often have a minimum opening deposit requirement. There is a minimum opening deposit of $100 noted for three of the IberiaBank small business checking accounts (Free Business Checking, Business Interest Checking, and Choice Business Checking).
Additionally, certain business checking accounts require you to maintain a certain minimum balance, typically to waive the monthly service charge. This isn’t a concern with Free Business Checking, which has no monthly service charge, but in the case of both Business Interest Checking and Choice Business Checking, you must maintain a certain minimum balance in order to waive the monthly maintenance fee. For Business Interest Checking, you must maintain a $10,000 minimum daily balance. For Choice Business Checking, you must maintain a $25,000 minimum daily balance, or you can maintain a $50,000 combined minimum balance with other IberiaBank accounts.
Before choosing an account with this stipulation, it’s important to consider whether your business will meet the minimum balance requirement, and thus dodge the monthly maintenance fee.
Fees
As indicated in the discussion of balance minimums above, certain IberiaBank business checking accounts do have monthly service charges. There is no monthly fee for Free Business Checking. There’s a $10 a month fee for Business Interest Checking and a $25 per month fee for Choice Business Checking, unless you can meet the accounts’ respective balance minimums. In that instance, the bank will waive the monthly service charge.
You’ll also want to be aware of the fees you’ll pay when you surpass set limits. For transactions beyond your monthly limit, you’ll pay a fee of $0.50 per item. Once you surpass your currency deposited limit, you’ll pay a $2 per additional $1,000 for certain accounts.
The 5 IberiaBank Small Business Checking Accounts Reviewed
With those considerations in mind, here are the five available IberiaBank small business checking accounts that you can choose from. The accounts are designed to meet different needs, whether that’s no fee and no balance minimum, as is the case with the Free Business Checking, or the opportunity to earn interest, as is the case with Business Interest Checking.
There are certain commonalities across all of IberiaBank’s small business checking accounts though. The accounts all offer:
- Up to two personal checking accounts
- Visa® Debit Card with no annual fee
- Online banking and bill pay
- Mobile and text banking
- eStatements and eNotices
IberiaBank Free Business Checking
IberiaBank Free Business Checking is best for businesses that have a low transaction volume. Account holders can make up to 500 transactions per statement period at no fee, and deposit or exchange up to $10,000 currency per statement period. Accounts that exceed the transaction limits or cash deposit/exchange limits during any two statement periods over a year may be automatically converted to Business Checking Plus.
There is no minimum balance or monthly service charge associated with Free Business Checking. Account holders can get up to two free personal checking accounts, and monthly service charges will be waived for business owners.
Monthly fees and limits:
- $100 minimum opening deposit
- No monthly service charge
- No minimum balance
- Up to 500 transactions per statement period (no fee for additional transactions, but accounts that exceed the transaction limit during any two statement periods over a 12-month period will be automatically converted to Business Checking Plus)
- Up to $10,000 in cash deposits per statement period (no fees for additional deposits, but accounts that exceed the limit during any two statement periods over a 12-month period will be automatically converted to Business Checking Plus)
Best for:
- Business with a low transaction volume
- Businesses with a low account balance
IberiaBank Business Interest Checking
IberiaBank Business Interest Checking is specifically designed for businesses that want to earn interest. Although the account is interest-bearing, the transaction limit is lower for this account than it is for Free Business Checking. The account has a transaction limit of 300 items per statement period. It has a currency deposit limit of $10,000 per statement cycle, which is the same as that of Free Business Checking.
Another difference between Business Interest Checking and Free Business Checking is that there is a balance minimum and monthly service charge associated with Business Interest Checking. Account holders must maintain a minimum daily balance of $10,000 in order to waive the monthly service charge of $10.
Monthly fees and limits:
- $100 minimum opening deposit
- $10 monthly service charge (waived for accounts that maintain a minimum daily balance of $10,000)
- 300 transactions per statement period; a $0.50 per item fee applies to additional transactions
- Up to $10,000 in cash deposits per statement period; a $2 fee per additional $1,000 applies to additional cash deposits
Best for:
- Businesses that want to earn interest
- Businesses with a relatively low transaction volume
IberiaBank Choice Business Checking
IberiaBank Choice Business Checking is recommended for growing businesses that want the option of perks. This account offers business owners the option between a free remote deposit capture machine (with a 24-month commitment) or no monthly statement processing fee on merchant services. The account offers 500 free transactions. Like Free Business Checking and Business Interest Checking, $10,000 in currency deposited or exchanged is permitted. After that, a $2 fee per additional $1,000 applies.
Choice Business Checking has a higher monthly service charge of $25. To avoid this charge, clients must maintain a $25,000 minimum daily balance or a $50,000 combined minimum balance.
Monthly fees and limits:
- $100 minimum opening deposit
- $25 monthly service charge (waived for accounts that maintain a minimum daily balance of $25,000 or a combined minimum balance of $50,0000)
- 500 transactions per statement period; a $0.50 per item fee applies to additional transactions
- Up to $10,000 in cash deposits per statement period; a $2 fee per additional $1,000 applies to additional cash deposits
Best for:
- Growing businesses with a moderate minimum daily balance
- Businesses interested in either a free remote deposit capture machine or reduced merchant services fees
IberiaBank Preferred Business Checking
IberiaBank doesn’t readily provide much information on its website about Preferred Business Checking. To find out more, the bank requests that business owners set up an appointment to determine the most appropriate solution for them. However, it does note that the account is best for businesses that have “limited transaction volume and basic cash management needs.”
Monthly fees and limits:
- Set up an appointment for more information
Best for:
- Businesses with a low transaction volume
- Businesses with basic cash management needs
IberiaBank Commercial Checking with Analysis
Similarly to Preferred Business Checking, IberiaBank doesn’t provide much information online about its Commercial Checking with Analysis account. To learn about the account, business owners will need to set up an appointment with a bank representative. This account is recommended for businesses that have a higher transaction volume and more complicated needs related to cash management.
Monthly fees and limits:
- Set up an appointment for more information
Best for:
- Businesses with a higher transaction volume
- Businesses with more complex cash management needs
Who Are IberiaBank Small Business Checking Accounts Right For?
In general, IberiaBank is best for small business owners in the Southeast, as that’s where most of the bank’s nearly 200 branch offices are located. The bank has branches in 10 states: Louisiana, Arkansas, Tennessee, Alabama, Texas, Florida, Georgia, South Carolina, New York, and North Carolina.
IberiaBank offers business owners a number of small business checking accounts to choose from. Aside from Commercial Checking with Analysis, IberiaBank’s accounts are best for businesses with lower transaction volumes. The bank’s interest-bearing account, Business Interest Checking, has the lowest transaction limit of 300 items per statement period. This account option requires a $10,000 minimum daily balance in order to waive the relatively low monthly service charge of $10.
Free Business Checking and Choice Business Checking both have slightly higher transaction limits of 500 items per statement period. Free Business Checking has no fee and no minimum. While Choice Business Checking has both a monthly service charge and a balance minimum, it offers business owners the choice between a free remote deposit capture machine (with a 24-month commitment) or no monthly statement processing fee on merchant services.
IberiaBank presents its final two small business checking account options, Preferred Business Checking and Commercial Checking with Analysis, as more customizable for business owners’ needs. Rather than publicly posting set transaction limits and monthly service charges, the bank recommends that business owners schedule an appointment with the bank to “build the best solution” for their business’s needs.
Remember, as you’re weighing your options it’s especially important to consider transaction limits, minimum balance requirements, and fees. In order to find the right account for your business, you’ll need to first assess and understand your business’s banking needs. That will allow you to select a business checking account that not only serves your business now, but into the future, as well.
The post IberiaBank Small Business Checking Accounts Reviewed appeared first on Fundera Ledger.
from Fundera Ledger https://www.fundera.com/blog/iberia-bank-small-business-checking/
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