Capital One VS Wells Fargo Business Banking Comparison

Wells Fargo and Capital One both offer business banking services aimed at small businesses with FDIC-insured checking and savings options, ATM access, business credit cards, and more. While these two banks have much in common, there are some big differences, too, such as physical branches, the ability to deposit cash, and varying fees.

So, which of these business banking services is better?

Here’s a detailed comparison of Capital One vs Wells Fargo, so you can choose the business bank account that benefits you most.

Capital One VS Wells Fargo Business Banking: At A Glance Comparison

Capital One and Wells Fargo offer small business checking and savings options. While there are a few differences in terms of features and pricing (spoiler: both features and pricing tend to be better with Capital One), there are some very basic differences as well that could affect your business’s decision.

Capital One is the only option of the two that offers a high-yield savings account option; Wells Fargo doesn’t have a HYSA, and the CD they do offer for interest-earning has a fairly low APY compared to other banking options.

However, Wells Fargo is the only one of the two to offer an interest-bearing checking account and payroll service add-ons.

let’s dive from this quick summary of key similarities and differences into the nitty-gritty details so that you can choose the best option for your business.

Where Capital One Business Bank Account Shines

Where Capital One Business Bank Account Falls Short

Where Wells Fargo Business Banking Shines

Where Wells Fargo Business Banking Falls Short

Capital One VS Wells Fargo Pricing & Fees Compared

Both Wells Fargo and Capital One offer multiple business checking account options with waivable monthly fees and will waive monthly savings account fees if you open a savings account and a checking account together.

Still, each bank stands out in a couple of pricing areas.

Capital One offers greater access to cash deposits. If your sales are cash-heavy, you’ll appreciate the ability to deposit up to $5,000/month in cash with the Capital One Basic Checking account or up to $40,000/month with the Capital One Unlimited Checking.

These accounts come with monthly fees of $15 and $35, respectively, that can be waived when you maintain a minimum balance of $2,000 in the Basic account or $25,000 in the Unlimited. All Capital One business bank accounts come with unlimited free digital transactions and no foreign transaction fees.

Wells Fargo business bank accounts include limits of $5,000 and $20,000 in free monthly cash deposits on its Initiate and Navigate business checking accounts. The top-tier Optimize Business Checking account offers a flat fee of $0.003 for each $1 deposited.

Wells Fargo has lower monthly fees but also has a more limited number of free transactions each month. The Initiate account’s $10 monthly fee can be waived with a $500 minimum daily balance, while the Navigate account’s $25 monthly fee can be waived with a $10,000 minimum daily balance. The Optimize account’s $75 monthly fee is waived only with an earnings allowance for investable account balances.

Optimize and Navigate both allow 250 free transactions each month, while Initiate allows just 100. After that limit, each transaction costs $0.50. Wells Fargo also has a foreign transaction fee of 3%, which is quite hefty. So, if your business has a large number of transactions each month or does international business, Capital One would be a better option than Wells Fargo.

Capital One VS Wells Fargo Services & Features Compared

In terms of features, Capital One and Wells Fargo both offer business checking and business savings basics like mobile apps, FDIC insurance, and fraud monitoring. You won’t find more advanced finance management features like cash flow monitoring or credit building with either option. If these more advanced features are important to you, Chase business banking or Bank of America business banking may be a better fit.

Overall, Capital One offers slightly more features than Wells Fargo — at least that’s how it appears since Wells Fargo’s business checking and business savings website pages are sparse and very outdated in terms of web design.

Here’s a closer look at where Capital One and Wells Fargo stand in terms of unique features:

Only Capital One Offers

• A high-yield business savings account with 4.10% intro APY (1.0% APY after the 6-month promotional window)
• Bill pay
• Has a Xero integration
• Overdraft protection (Wells Fargo has some limited overdraft protection on certain accounts)

Only Wells Fargo Includes

• An interest-bearing checking account option (though Wells Fargo does not disclose the earning rates)
• Payroll services available
• In-house merchant services (Capital One’s merchant services are through a third-party integration)

Which Bank Is Better For Your Business, Wells Fargo Or Capital One?

Both Wells Fargo and Capital One offer basic business checking and savings accounts that get the job done. However, Capital One edges Wells Fargo out in a few key areas.

Capital One offers better pricing with unlimited fees, no foreign transaction fees, and higher cash deposit limits. Capital One also offers more features than Wells Fargo and has a high-yield savings account option. If you want to earn high interest with Wells Fargo, you’re limited to a CD, and the CD rates are fairly low compared to other online bank accounts like Live Oak Bank.

However, if you want certain features like interest-bearing checking accounts and optional additional payroll services, you’ll only find those with Wells Fargo (at least in this matchup; there are other business bank accounts that offer both of these as well). If in-person banking is important to your business, you’ll also have an easier time accessing physical branches with Wells Fargo.

Choose Capital One If…

• You’re looking for a savings option with a higher-than-average APY, at least for the duration of the promotional period
• You make a significant amount of sales in cash transactions
• You want no foreign transaction fees
• You want integrated bill pay
• You need a Xero integration
• You want access to some of the best business credit cards available

Choose Wells Fargo If…

• You have some cash transactions, but the majority of your sales are not cash
• You don’t have many foreign transactions, since there is a hefty fee
• You don’t have a large number of transactions each month or are willing to pay extra if you go over the limit
• You want an interest-bearing checking account
• You want payroll services that work seamlessly with your banking accounts
• You want in-house merchant services
• You are comfortable with online banking but would like easy access to physical bank branches at times

Still not convinced that this Capital One vs. Wells Fargo comparison has revealed your ideal business bank? Check out our picks for the best business bank accounts. And, if you’re ready to put your money to work for you, don’t miss our list of the best high-yield business savings accounts for suggestions of the banks that will deliver the highest interest rates around.