Review: Capital One Small Business Checking, 2018

capital one logo
  • Capital One Spark Business Checking accounts are best for those small business owners who want unlimited transactions and can maintain a $2,000 average monthly balance.
  • The free additional Spark Business Savings account has a promotional APY rate of 1.75% for the first year on up to $1 million in balances.
  • $15 monthly service fee for checking accounts that do not maintain a minimum balance of $2,000.
  • Capital One has 700 branches and 39,000 ATMs nationwide and offers online business checking services.
  • Free Spark Business Savings account has no minimums and no fees.
  • There is a $5,000 limit on free cash deposits, and Spark customers cannot get assistance or transact at branch locations.
  • Businesses can open a Capital One business checking account either online or in person at a branch location.

Is Capital One easy to use?

Capital One‘s Spark business checking account is a digital banking service designed for small businesses. As a result, it has very low fee structures. Businesses can unlimitedly transact and have no minimum required balances to start. The online banking portal interface is very user-friendly even for less tech-savvy customers. Spark business checking is set up as an easy banking solution for small business owners who don’t need to manage millions in portfolios, payroll, and other forms of equity. It is a lightweight checking account that comes with an additional Spark Business Savings account. There is a mobile app option to help business owners do their banking from anywhere in the world.

Does Capital One offer checking account bonuses?

The Spark Business Savings account offers a promotional Annual Percentage Yield of 1.75% for the first year. This applies to up to $1 million in savings balances for business owners. After $1 million there will be a non-promotional APY applied. After the first year of banking through the Spark Business promotion, the rate will lower to .40%, earning interest at Capital One’s standard rate. The promotion is limited to one account per business.

How much are Capital One’s business checking fees?

Capital One considers itself to be a lower fee bank. Here are some of the fees that you might incur as a business checking account customer:

  • Monthly Service Fee: $15 if your business checking account does not maintain a $2,000 minimum balance
  • No transaction fees or ATMs fees at all 39,000 Allpoint ATMs
  • Free Cash Deposits up to $5,000 and $1 for every $1,000 after that
  • Incoming Wire Fee: $15
  • Outgoing Wire Fee (Domestic): $25
  • Outgoing Wire Fee (Foreign): $40
  • Spark Business Checking customers can order business checkbooks for $30 each with each additional checkbook costing $22.

How big is Capital One?

Capital One Network is smaller as far as physical locations are concerned. They only have 700 branches nationwide and are not located in many states. They are partnered with Allpoint to provide customers with more fee-free ATM access with over 39,000 ATMs in the U.S. Capital One relies heavily on their web portal and mobile banking app to give customers the 24/7 support and service they require. Most if not all account issues can be resolved on the website or over the phone.

Does Capital One have special account features?

Merchant Services

  • Accept credit card payments worldwide powered by Worldpay
  • Use smart terminals, traditional terminals, or mobile readers
  • Transparent reporting and multiple payment methods friendly
  • Accept all major credit, gift and loyalty cards

Spark Credit Cards

  • Spark cash back rewards or Spark miles rewards credit cards for businesses that travel
  • The cash back card has 2% cash back and $500 cash bonus opportunity
  • The miles rewards card offers 2x the miles reward and a 50,000 bonus miles opportunity

Retirement

  • Custom plans designed for small businesses
  • Spark 401K support for business owners and employees
  • Low-expense Exchange Traded Fund options

How do I open a Capital One account?

The barriers to entry for a Sparks Business checking account are particularly low. All the requirements you need to meet to qualify are:

  • Be a U.S. citizen or permanent resident
  • Provide a valid Social Security Number
  • Be 18 years or older

You can open a business checking account online or in person. Once the account is open, you can start banking immediately. All you need is a minimum of $2,000 as a balance to avoid the monthly fee. If you are just starting a small business Capital One is a preferred option as the eligibility requirements are easy to fulfill.

Summary

If you aren’t a cash-heavy small business that would be affected by Capital One’s $5,000 limit on free cash deposits, then Capital One could be a great choice for your business checking account. The main drawback is that you cannot receive account assistance at a branch location and have to get support online or call the Capital One support number. The free Spark savings account with high APY for the first year is a good incentive to bank with Capital One. Many business checking accounts have many requirements for eligibility and strict average monthly balances to meet. Capital One has a very straightforward business checking account that really caters to small businesses just getting their start or side businesses that are a source of supplementary income.  

 

Share this post

Close Menu