Capital One Business Banking Review

Pros

• No minimum balance requirements
• Cash deposits allowed
• Unlimited free digital transactions
• Free overdraft protection

Cons

• High APY on savings expires after 12 months
• Withdrawal limits on savings accounts
• High balance requirement to waive monthly fees on Unlimited Checking

What Is Capital One Business Banking?

Long-time credit card provider Capital One operates a direct bank, Capital One Business Banking, that provides business banking services. Capital One Business Banking offers checking and savings accounts, as well as certificates of deposit.

Services Offered By Capital One Business Banking

With two types of checking accounts available, Basic Checking and Enhanced, Capital One Spark aims to serve businesses of all sizes and needs. There is also a “tailored business checking accounts” option for large and complex businesses. Capital One also offers a Savings account with a high-yield promo rate.

If you’re looking for a business bank that provides services beyond checking and savings, Capital One has a large lineup of other business services, earning it a perfect 5.0/5 star rating for this section. The company is especially known for its credit card options, including some we count among the best credit cards available for businesses. Add in Capital One Spark’s merchant services option, and you have a fairly complete financial services package for businesses that goes beyond most of its competitors’ offerings.

Here are all of the additional business services you’ll find with Capital One:

• Credit Cards
• Loans
• Lines of credit
• Merchant services
• Certificates of deposit
• Escrow services
• Commercial business services

Capital One Business Banking Rewards & Perks

Capital One Business Banking offers some reward options but is lacking compared to other top online business banks in this area.

When you open a savings account with Capital One, you can unlock a 6-month promotional high-yield interest option of up to 4.10% APY. While we’re slightly disappointed that this rate went from a 12-month offering to 6 months, this is still competitive, especially for a big-name bank. There are balance tiers that you have to meet to unlock the highest promo percentage.

While Capital One’s checking accounts do not earn rewards, Capital One banking customers can apply for a linked business credit card, which includes some of the best business credit card rewards on the market.

Capital One Business Banking Account Fees

Capital One Business Banking fees are straightforward for each account but are a mixed bag in terms of competitiveness, which is reflected in the 2.9/5 star rating for this section. We appreciate that both checking accounts have free unlimited digital transactions and that monthly fees are waivable, though the minimum balance for waiving fees is quite high compared to other banks.

Overall, Capital One’s fees aren’t as expensive as we usually anticipate for big-name banking options, but if you send a lot of wire transfers the fees can add up fast if you aren’t using the more expensive checking account plan.

Compared to other banking options, there are some more affordable free business checking accounts, especially if you’re willing to look into up-and-coming fintech businesses.

Here’s a breakdown of the fees you can expect with each Capital One bank account.

Capital One Basic Checking

The $15 monthly maintenance fee for the Basic checking account can be waived if you maintain an average minimum balance of $2,000. There are no in-network ATM fees and no

This account allows $5,000 in cash deposits each month with no charge; you’ll pay $1 for every $1,000 in cash deposits after that limit.

Other fees include:

• $15 incoming domestic wire transfer
• $25 outgoing domestic wire transfer
• $15 incoming foreign wire transfer
• $40 outgoing foreign wire transfer (if in foreign currency)
• $50 outgoing foreign wire transfer (if in U.S. currency)
• $2 out-of-network ATM fee
• $10 cashier’s check
• $35 non-sufficient funds
• $35 stop payment

Capital One Enhanced Checking

Upgrade to the Enhanced checking plan, and your monthly fee goes up to $35 and becomes a bit more difficult to waive. You can eliminate it only by maintaining a minimum balance of $25,000.

In exchange for that higher fee, you’ll unlock no-fee monthly cash deposits up to $40,000 and free incoming domestic wire transfers in addition to five outgoing wires each month (you’ll pay a $25 charge per transfer after that).

Here are the fees you can expect to find:

• $15 incoming foreign wire transfer
• $40 outgoing foreign wire transfer (if in foreign currency)
• $50 outgoing foreign wire transfer (if in U.S. currency)
• $2 out-of-network ATM fee
• $10 cashier’s check
• $35 non-sufficient funds
• $35 stop payment

If you also open a Capital One Spark business savings account, you’ll be subject to a $3 monthly service fee. Maintain a $300 minimum balance and you can have that fee waived. Linking your savings account provides overdraft coverage. Savings accounts allow up to six free account withdrawals per statement cycle.

Capital One Business Advantage Savings

The Capital One Business Advantage Savings account costs $3/month, which can be waived with a $300 minimum balance.

You are allowed six free monthly transactions — Capital warns that if you repeatedly go over six transactions, the company may close your account or convert you to a checking account.

For cash deposits, you can deposit up to $10,000/month for free, with a fee of $1 per $1,000 after that.

Here are the other fees you’ll find:

• $15 incoming domestic wire transfer
• $25 outgoing domestic wire transfer
• $15 incoming foreign wire transfer
• $40 outgoing foreign wire transfer (if in foreign currency)
• $50 outgoing foreign wire transfer (if in U.S. currency)
• $2 out-of-network ATM fee
• $10 per cashier’s check
• $35 non-sufficient funds
• $35 stop payment

Capital One Business Banking Eligibility Requirements

Capital One business banking is open to all types of businesses, with no income requirements or minimum length of time in business needed. A reasonable minimum deposit of $250 is required to open a checking account with Capital One Business Bank.

That makes Capital One Business Banking a good choice for startups as well as more established businesses and earns it a 4.6/5 star rating for being an accessible banking option for many businesses.

Note that Spark business banking is available only to US-based businesses. Additionally, Capital One says that its business checking accounts are intended for businesses with annual sales revenues under $10 million; the bank reserves the right to convert accounts that exceed that limit to other types of banking services.

Capital One Business Banking Account Application Process

Previously, Capital One only allowed banking customers to apply in person, You can now apply online in minutes with was a much-needed improvement that opened Capital One Business Banking up as a viable option for more businesses.

You’ll need to be prepared to show the standard documentation required to open a business bank account. At a minimum, expect to show government-issued identification that shows you are a legal US resident at least 18 years old. You’ll also need to show documentation for your business that will vary depending on your business structure, e.g., sole proprietorship or corporation.

Capital One Business Banking Features

Let’s take a closer look at Capital One’s feature options:

Capital One Spark business delivers a complete set of financial tools for small to medium-sized businesses.

Here are the benefits you’ll find with Capital One’s banking accounts:

• High-yield savings
• Unlimited digital transactions
• Bill pay
• Cash deposits
• Employee cards
• Employee spend controls
• Expense tracking
• Fraud liability protection
• Traditional checks
• Online bill pay
• ATM network
• Savings accounts
• Mobile app
• Branch access
• Cash deposits accepted
• Overdraft coverage
• Next-day funding
• Cash-flow management tools

Under most circumstances, deposits to a Capital One Business Bank account are readily available. The bank’s general policy is to make funds available on the first business day after deposit. The consistent exception is electronic deposits received; those are available the same business day they are received. If a delay applies to funds availability, they will generally be available on the second business day, with the first $200 generally available the first business day.

A “business day” is defined as every day except Saturdays, Sundays, and federal holidays. Deposits made at a branch office on a business day generally will be available that day.

Capital One Sales & Advertising Transparency

Capital One makes it easy to find information on its site. You’ll find regular marketing copy but nothing sale-gimmicky.

Capital One Business Banking Customer Service

I found no shortage of reviews online from users who were frustrated by poor customer service from Capital One.

However, having used Capital One and contacted their support first-hand, I have never encountered any issues with customer support. The other strong point for Capital One is that there are many support options available, including:

• Phone: Phone support is available.
• Digital Assistant: Access “Eno,” Capital One’s digital assistant, through chat, on the mobile app, via text message, through your browser, and more.
• Support Center: Visit the searchable online help center for answers to common questions.
• Social Media: Capital One maintains active accounts on Instagram, Twitter, Facebook, and LinkedIn. Not all posts are related specifically to business banking.
• Videos: Visit Capital One’s YouTube channel for promotional and informational videos.
• Postal Mail: General correspondence and specific requests can be sent via mail to various post office boxes in Salt Lake City.

Capital One Business Banking Customer Reviews

It’s easy to find customer reviews of Capital One, but to find reviews of Capital One’s banking services, in particular, you’ll need to dig through a slew of reviews and ratings. Most complaints regard Capital One’s other services.

Capital One Financial Corporation is accredited by the Better Business Bureau and maintains an A+ rating there, despite a variety of complaints filed against the company with the BBB.

Here are some of the positives and negatives customers noted about the company’s banking accounts in particular.

Negative Capital One Business Banking Reviews

• Unhelpful customer service
• Problems with direct deposits
• Buggy app

Positive Capital One Business Banking Reviews

• Friendly customer service
• Easy to use mobile app
• High APY

Is Capital One Business Banking Safe?

A Capital One Spark business bank account is a safe place to deposit your funds. Capital One Business Bank accounts are FDIC-insured. The bank takes online security seriously, offering secure login options, real-time alerts for account activity, and enhanced alerts on suspicious transactions.

Should problems arise, processes are in place to help you submit a claim, report fraud, lock your debit card, and reclaim any lost money.

Final Verdict: Is Capital One Business Banking Worth It?

Capital One Spark banking can be an attractive option for businesses looking for a truly all-in-one banking solution.

If you’re looking for an all-in-one solution to your business’s financial needs, with an above-average APY, low fees, unlimited fee-free digital transactions, and access to credit this could be a good choice for your business needs.

If you are looking for a checking account with rewards or a high-yield savings account that doesn’t have a promo end date, then you may want to look at other options. Also, if your business sends a large number of wire transfers and can’t maintain a minimum balance of $25k, Capital One’s banking fees could get really expensive really fast.

To compare all your options, check out our list of the best business checking accounts and the best high-yield savings accounts so that you can be sure about your business’s banking decisions.

Business Banking Review Methodology

Merchant Maverick has been researching and reviewing business banking services since 2015. Our writers have tested over thirty different banking products, including checking accounts, savings accounts, employee spending cards, and more. In each review, we evaluate rates and fees, services, rewards, features, eligibility requirements, application process, sales and advertising transparency, customer service, and user reviews.

Read more about how we rate business banking products.

When comparing different banks and banking services, we consider many data points, including the ease and transparency of the account application process, account fees, sales ethics, minimum deposit requirements, and revenue, time in business, and credit score requirements. Our lists of the best banking services include only those we’ve deemed worthwhile from multiple vantage points, and often share qualities such as widespread accessibility across fifty states, valuable rewards, numerous transaction options, and competitive APY.

We spend an average of 10-15 hours researching and updating each one of our lists, making sure the banking services included meet our internal standards for quality and reputation.

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Ramp offers a free corporate card and finance management system for small businesses. Start earning rewards with your corporate spending today.

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And start earning