Bank Of America VS Capital One: Business Banking Compared
Capital One and Bank of America offer similar business banking services. Since they share many of the same features, explore their differences to see which is the right fit for you.
|Bank Of America||Capital One|
|What’s Next||Visit Site
Both Capital One & Bank of America offer business banking with spending tools for small businesses. Who comes out ahead in a Bank of America vs. Capital One matchup? Does either Bank of America or Capital One business banking deliver a better range of financial tools, at a better price, with better access online and in-person?
Let’s find out!
Table of Contents
- Bank Of America VS Capital One: Business Banking Comparison
- What’s The Difference Between Bank Of America & Capital One Banking?
- Bank Of America VS Capital One: Business Banking Comparison Table
- Other Capital One Products & Services
- Other Bank Of America Products & Services
- How To Choose Between Capital One & Bank Of America
- Bank Of America & Capital One Competitors
- Bank Of America VS Capital One: Which Banking Solution Is Best For Your Business?
- FAQs: Capital One VS Bank Of America
Bank Of America VS Capital One: Business Banking Comparison
Capital One and Bank of America offer similar business banking services. Both offer FDIC-insured checking and savings accounts and online access. Both have unlimited online transactions, ATM access, merchant services, and physical branches that customers can visit, although one has branches in only 8 states plus Washington, D.C. A closer look at what Capital One business banking has to offer vs. Bank of America will give you the information you need about these two banks and their similarities and differences.
Bank Of America Pros & Cons
- Physical branches in 50 states
- Cash deposits accepted
- Strong mobile app
- Monthly fees are easy to waive
- Foreign transaction fees
- Low APYs
- Transaction limits
If bigger is better, you can’t go wrong choosing Bank of America, the second-largest bank in the US and the eighth-largest in the world. With branches and ATMs around the country, and even in some locations overseas, Bank of America is available wherever you need it to be. And it offers just about all the services small business owners could want, including the basics like checking and savings, plus merchant services, access to credit, payroll services, and professional investment advice from its subsidiary Merrill Lynch. What you won’t find is a high APY on savings accounts. Even with Bank of America’s Preferred Rewards for Business program, you’ll be looking at a top savings APY that’s below the national average.
Bank Of America Pros & Cons
- No minimum balance requirements
- Different checking accounts to suit many businesses
- Fee-free ATMs
- Access to credit
- Cash deposits allowed
- Physical branches only in 8 states + D.C.
- In-person applications only, not available online
- High balance requirements to waive fees on some accounts
You may know Capital One for its extensive credit card line (and perhaps its distinctive advertising line), but Capital One operates a direct bank, Capital One 360, that provides business banking services within the Spark line of financial services. Capital One business banking includes two types of checking accounts, with different balance requirements, limits, and fees, so you can choose the option that fits your business best. Capital One’s well-rounded business banking program includes merchant services, a high APY on savings (though it’s available only for a promotional period), a free ATM network, and access to credit.
What’s The Difference Between Bank Of America & Capital One Banking?
A Bank of America vs. Capital One business banking head-to-head is a strong competition. Each offers the basics plus a little bit more, meaning they’re appropriate choices for small businesses and can meet the needs of large and growing businesses, too. Here’s a summary of the features and services you will find with both Capital One business banking and Bank of America business banking:
- Multiple types of business checking accounts
- Savings accounts
- Cash deposits (with some limits; fees may apply)
- Debit cards
- ATM network
- Bill pay service
- Online banking
- Mobile app
- Credit cards
- Certificates of deposit
- Lines of credit
- Merchant services
- SBA loans
- Telephone support
Bank Of America Also Includes …
- Payroll services
- Professional advice via Merrill Lynch
- Virtual assistant
- Cash flow monitor
- Virtual debit cards
- QuickBooks integration
Capital One Also Includes …
- High APY (for promotional period only)
- Unlimited free digital transactions
- A simple fee structure, with fees that can be waived with minimum balance
- Xero integration
Bank Of America VS Capital One: Business Banking Comparison Table
|Bank Of America||Capital One|
|Savings||Low APY||Limited time promotional rate|
|Cash Deposits||Free up to $7,500-$20K/month||Free up to $5K-$40K/month|
|Mobile App||Android & iOS||Android & iOS|
|Bill Pay||Fee-free online||Fee-free online|
|Access To Credit||
||Through Clover POS|
Fee-Free Cash Deposits
Bank of America business banking and Capital One business banking both offer one service that’s somewhat rare among business banks these days: the ability to deposit cash. Each offers a fee-free cash deposit up to a set limit that depends on the type of checking account you choose. For Capital One, those limits range from $5,000-$40,000 per month, with a fee for excess deposits standing at $1 per $1,000. With a Bank of America business checking account, your cash deposit limits will be either $7,500/month or $20,000/month. After that, you’ll be charged a fee of $0.30 for every $100 in cash you deposit.
Both banks offer a somewhat convoluted approach to monthly fees, though you can find full disclosure online and in the banks’ fee schedules. We recommend you visit each bank’s website or speak with a representative to fully understand the monthly fees.
Fee Structure For Bank Of America Business Accounts
Here’s a sampling to help you in your decision-making process. Bank of America offers two business checking accounts: Business Advantage Fundamentals, with a monthly fee of either $0 or $16, and Business Advantage Relationship Banking, with a monthly fee of either $0 or $29.95. To get the $0 fee, you’ll need to maintain an average monthly balance of either $5,000 or $15,000 or join Bank of America’s Preferred Rewards Business program.
Fee Structure For Capital One Business Accounts
As for Capital One, if you choose the Basic account, you’ll see a $15 monthly fee that can be waived with a minimum balance of $2,000. Capital One’s Navigate account has a $25 fee that can be waived with a $10,000 minimum balance, and the Optimize account’s $75 monthly fee can be waived only with an earnings allowance of investable account balances.
Transaction Limits For Business Banking Accounts
Speaking of fees, both Bank of America and Capital One have transaction limits attached to their business banking accounts. Excess transactions will incur fees, so it’s smart to be aware of them as you’re considering which account will fit your small business best. It’s important to understand that both these banks allow unlimited free digital transactions. Transaction limits typically apply to things like teller interactions and check you write but not to debit card transactions or mobile check deposits.
Free Transactions Per Month
Capital One’s Optimize and Navigate accounts both allow 250 free transactions per month, while the Basic account allows just 100 free transactions each month. Bank of America’s two business banking accounts come with similar limits. The Business Advantage Fundamentals Banking account allows up to 200 free transactions each month, and the Business Advantage Relationship Banking account allows 500 free transactions per month.
Other Capital One Products & Services
Best known for its credit card offerings, which you may have in your wallet, Capital One offers several financial services aimed squarely at businesses. These include an array of business credit cards that include cash back and travel rewards, and in fact, we consider Capital One’s credit cards to be some of the best available, thanks to their often stellar rewards, lack of fees, and reasonable interest rates. There’s even a secured card, for small businesses with poor credit. You can read our roundup, linked above, of the best Capital One business credit cards.
Capital One also offers credit in the form of business loans.
Other Bank Of America Products & Services
- Bank of America Small Business Loans & Lines Of Credit
- Bank of America Merchant Services
- Bank of America Platinum Visa Credit Card
- Bank of America Business Advantage Travel Rewards Mastercard
- Bank of America Business Advantage Cash Rewards Mastercard
Bank of America offers a selection of credit cards to its business customers, allowing you to choose between travel and cash rewards when you make purchases. These cards offer adequate, if not outstanding, rewards and are well-reviewed overall. Bank of America offers a strong line of lending options in addition to its credit cards. These loans and lines of credit come with good rates and in potentially high amounts.
Bank of America also offers merchant services with excellent features and good rates and fees. Bank of America Merchant Services uses Clover POS.
User Reviews, Complaints, & Criticisms
Both Bank of America and Capital One are accredited by the Better Business Bureau.
Capital One maintains a solid A rating with the BBB, and Bank of America goes one better with an A+ BBB rating. Although both banks have their share of complaints posted on the BBB website, most seem to be about individual customers with problems like missing debit cards, closed accounts, or fraudulent charges. Very few comments online relate specifically to business banking.
However, it’s fair to note that both banks garner their share of complaints about customer service, though each offers plenty of self-help options that can be accessed online. Bank of America users have complained specifically about problems using their cards overseas, and Capital One customers say the mobile app can be buggy. Despite concerns like these, we feel confident in saying that we didn’t spot any serious concerns in user reviews, and you can confidently select either Capital One or Bank of America as your small business banking partner.
Bank Of America Complaints & Common Problems
There are 736 user ratings for Bank of America on the Consumer Affairs website, where the bank has a composite score of 3.4/5 stars. Again, we saw no troubling patterns that raised red flags. Still, here are some common concerns users have raised:
- Difficult to reach customer service
- International transaction fees
- Account fees
- Concerns with fraud response
Capital One Complaints & Common Problems
Capital One has a 3.8/5 star rating on the Consumer Affairs website, based on 2,052 reviews. Here are some common complaints users raise about Capital One:
- Unhelpful customer service
- Problems with direct deposits
- Mobile app can be buggy
- Unsatisfactory response to fraudulent transactions
How To Choose Between Capital One & Bank Of America
Capital One business banking and Bank of America business banking are both solid options, and we can’t recommend either one exclusively for every reader. However, this Bank of America vs. Capital One comparison has uncovered some differences that could help you decide which will work best for your small business.
Choose Bank Of America If …
- You value the option of visiting a physical branch in addition to online banking.
- You would like $0 monthly fees without having to maintain high minimum balances.
- You’d like to take advantage of professional financial advice.
- You need payroll services.
- You have less than $20K in cash deposits each month.
- You use QuickBooks for your business accounting and want a banking system that will integrate easily.
Choose Capital One If …
- You are able to visit a physical Capital One bank branch in one of the eight states plus Washington, D.C. where Capital One operates. You cannot apply online for Capital One, although you can do most banking functions without visiting a branch office.
- You want some of the best business credit cards available.
- You want to take advantage of a higher-than-average promotional APY on savings.
- Your business makes a significant amount of its sales in cash transactions.
- You use Xero for your business accounting and want an integration to your banking system.
Bank Of America & Capital One Competitors
Wells Fargo and Capital One both can be good choices for small businesses looking for banking services. If you like what you’ve seen about either so far, you can learn more by reading our full Capital One business banking review or our full Bank of America business banking review. And, if you’ve heard enough about these two banks and wonder what other options you have, we’ve got you covered there, too.
If you have a significant amount of cash to stash, you may also be interested in our list of the best high-yield business savings accounts, so you can put your money to work for you.
Bank Of America VS Capital One: Which Banking Solution Is Best For Your Business?
If you choose Capital One for your business banking needs, you can access a higher than average yield on your savings, deposit high amounts of cash without fees, and find reasonable monthly fees that you can waive by meeting minimum balance requirements. If you prefer Bank of America, you’ll also find reasonable and waivable fees, branch offices near where you work and travel, and a strong mobile app you can use on the go.
If you’re still uncertain, thinking about your priorities can help you what to look for in a business bank when you open a business bank account. And once you’ve decided on your top choice of business bank, prepare and gather what you’ll need to open a business bank account ahead of time. That way, you’ll be ready to start right and get the most from your new business banking relationship.