Cashier’s checks, money orders and other official items issued by a bankįDIC protections do not cover investment accounts, safe deposit boxes, life insurance policies or annuities.Time deposits, such as certificates of deposit (CDs).Negotiable Order of Withdrawal (NOW) accounts.The types of business accounts the FDIC protects includes: That same protection extends to business accounts as well. The FDIC offers protection for personal deposit accounts, up to the specified limit of $250,000 per depositor, per insured bank for each account ownership type. Are Business Checking Accounts FDIC Insured? Compared to personal checking accounts, business checking accounts may charge more or higher fees overall. You may also be required to maintain a higher minimum balance in your account to avoid a monthly maintenance fee.

While some personal checking accounts can be opened with as little as $1, a business checking account might require $500, $1,000 or more to open, depending on the bank or credit union. This could be a copy of your articles of incorporation, your “Doing Business As” ( DBA) documentation or a business license, depending on the bank. In addition to business checking accounts, you may be able to open other accounts, such as a business savings account.īusiness checking accounts can also differ from personal checking accounts when it comes to things like:įor example, to open a business account, you typically need to prove ownership of the business. These are all tools and services that a business owner may need to help run their business more smoothly. Merchant services for processing card payments.But a business checking account can come with features that a personal checking account doesn’t.įor example, when you open a business checking account, your bank may offer access to helpful business features like: What’s the Difference Between Business and Personal Checking?īoth business and personal checking accounts can offer things like check-writing and debit cards. But there are other things that make business checking different. On the surface, the way each type of account is used is what sets business and personal checking accounts apart. Sending personal payments to friends and family.Transferring money to a linked personal savings account.Making purchases with a connected debit card.Paying personal bills, such as the mortgage or utilities.Personal checking accounts, on the other hand, are designed for personal use. Depending on the bank, your business may not even need to be generating any revenue yet to open an account.

Sole proprietors, limited liability companies (LLCs), partnerships and corporations can all opt to set up business checking accounts.

Making necessary purchases for the businessīanks can offer business checking accounts for all types of business owners and business structures.Personal Checking BasicsĪ business checking account can be used to manage business finances.

Just checking on you meaning