William LipovskyShort Answer
Ally Bank does not offer a business checking account. Other banks that do offer small business checking account options with low opening deposits and fees include Azlo, Bank of America, BBVA Compass, IBERIABANK, Novo, PNC, Small Business Bank, and Wells Fargo. Find more details on Ally Bank’s checking account policies, as well as business bank account options with features similar to Ally, below.
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Does Ally Bank Offer a Business Checking Account?
Ally Bank doesn’t offer a business checking account. While sole proprietors can technically sign up for Ally’s online, personal checking account and attempt to use it for business purposes, Ally may choose to close the account due to business-related activity. Entrepreneurs and freelancers often prefer using personal bank accounts since business checking accounts can be expensive; however, it is better to open a business checking account, as business transactions violate Ally’s terms and conditions.
Details for Ally’s Interest Checking Account are as follows:
- No minimum deposit to open
- No fee if the account is dormant
- No maintenance fees
- Free mobile banking
- Free online bill pay
- Free Ally ATM usage (use this ATM locator to see if there’s one near you)
- If you use an ATM from another financial institution and are charged a fee, Ally will reimburse you up to $10 in ATM fees per statement cycle.
- Higher interest rates compared to other major banks
- 24/7 customer support via phone or online chat
Business Checking Accounts to Consider
It’s best to keep your business banking separate from the everyday checking account that you use for personal transactions. There are legal and tax advantages to holding a different account for your business. We’ve compiled a list of business checking account options below, including each bank’s online accessibility and fees.
Note: In most cases, you’ll need to fill out an application and provide documentation to open a business checking account. The application process may require a copy of your DBA (doing business as), partnership agreement, or Certificate of Incorporation. Applying for a business checking account can take up to 30 days.
Best Option: Azlo
For sole proprietors, the best alternative to Ally’s online checking account is Azlo — a free, online banking platform built specifically for entrepreneurs and small businesses. Like Ally, Azlo offers free online banking with a fully digital application process and no minimum deposit. Azlo’s business checking account details include:
- ATM access at more than 50,000 locations through the Allpoint network
- Integration with QuickBooks Online, PayPal, TransferWise, Square, Stripe, and other financial tools
- No-fee services, including account closing, digital invoices, incoming wire transfers, payments, stop payments, and transfers
- No minimum opening deposit
- No minimum balance or monthly fee
- Online and mobile app account management; Azlo for iOSÂ and Azlo for Android
- Unlimited transactions
More Business Checking Account Options
Axos Bank
Axos Bank offers both small business banking as well as commercial banking and lending — it even offers business checking accounts that earn interest. The Axos mobile app is available at both the Apple Store and Google Play.
- No monthly fee for Basic Business Checking; $10 per month for Business Interest Checking (fee is waived for accounts over $5,000)
- 0.80% APY for Business Interest Checking account
- Surcharge-free ATM network
- Mobile check deposit
- $100 minimum opening deposit for Business Interest Checking; $1,000 for Basic Business Checking
Bank of America
Bank of America offers its Business Fundamentals Checking and Business Advantage Checking accounts. Details include:
- Monthly service fees range from $14 to $30; Bank of America will waive the fee if you meet the account’s balance or spend requirements
- Online banking and mobile check deposit included
- Includes a business investment or savings account for no additional monthly fee
BBVA Compass
BBVA Compass Business Connect Checking allows sole proprietors to apply for and manage their accounts online. (Other small businesses can apply for a Business Connect account but will need to do so in person at a BBVA Compass branch.) Business checking account details include:
- Fee-free ATM access at BBVA Compass and Allpoint ATMs
- No-fee services, including mobile banking, online bill pay, one personalized Visa debit card, up to $5,000 in cash processing per month, two in-branch deposits per month, and five in-branch withdrawals per month
- Minimum opening deposit of $100
- No minimum balance or monthly fee; $3 monthly fee for paper statements
- Online and BBVA Mobile Banking app account management
- Unlimited transactions for most transaction types
IBERIABANK
IBERIABANKÂ offers several business accounts, including Free Business Checking. The bank only accepts business checking account applications from customers doing business in Alabama, Arkansas, Florida, Georgia, Louisiana, New York, North Carolina, South Carolina, Tennessee, and Texas. Business checking account details include:
- No minimum balance
- No monthly fees
- Minimum opening deposit of $100
- Free Visa Business Debit Card
- 500 transactions allowed per statement cycle
- Two free personal checking accounts per business account
- Free mobile banking, online banking, e-Statements, and bill pay
NorthOne
NorthOne offers exclusively online banking for small businesses, startups, and freelancers. The NorthOne business bank account can integrate with accounting and point-of-sale software, and the mobile app is compatible with both iOS and Android devices. It takes just three minutes to open a NorthOne business bank account.
- Low monthly fee based on usage needs
- Free mobile check deposit
- Free ATM deposits and withdrawals
- Free Mastercard debit cards for all account owners
- Unlimited debit card payments
- Low-fee mobile ACH, wires, and bill payments
- Free unlimited sub-accounts for taxes, payroll, etc.
Novo
Novo is a banking app for entrepreneurs, startups, and small businesses that provides free business checking accounts and mobile banking. The Novo app is currently available only for iOS, but an Android app and web platform are coming soon, according to the company’s website. Business checking account details include:
- No minimum balance
- No monthly fee
- Minimum opening deposit of $50
- Unlimited transactions
- Free ACH and wire transfers
- Free online bill pay and mobile check deposit
- Compatible with Google Pay and Apple Pay
PNC
PNC offers Business Checking and Business Checking Plus accounts which are suitable for small businesses. Details include:
- Monthly service fees range from $10 to $20; fees waived if you meet the minimum monthly balance requirements
- Fee-free transactions range from 150 to 500 per month (additional transactions cost $0.50 each)
- Fee-free cash deposits of $5,000 per month for Business Checking and $10,000 per month for Business Checking Plus
- Free Visa debit card, online banking, and bill payment
- ATM access at all PNC ATMs
- Initial deposit requirement of $100
Small Business Bank
Small Business Bank offers free business checking accounts for sole proprietors, microbusinesses, and small businesses with fully digital sign-up and the following features:
- ATM access through the SHAZAM network
- No-fee services, including cashier’s checks, mobile deposits, money orders, and online bill payment
- No minimum balance or monthly fee; $10 monthly fee for paper statements
- Minimum opening deposit of $5
- Online and app account management; SBB for iOS and SBB for Android
- Unlimited transactions
- Free Mastercard Micropayment Card when you open a new account
Wells Fargo
Wells Fargo offers its Simple Business Checking, Business Choice Checking, and Platinum Business Checking. Simple Business Checking is the best Wells Fargo option for home-based businesses and sole proprietors. Details for Wells Fargo’s business accounts include:
- Minimum opening deposit of $25
- Monthly service fees range from $10 to $40; fees waived if you meet the minimum average balance or combined balance requirements
- Fee-free transactions range from 50 to 500 per month
- Fee-free cash deposits range from $3,000 to $20,000 per month
- Online and mobile banking access
- Platinum Business Checking comes with fee-free stop payment orders, money order, and cashier’s checks, plus two free incoming wire transfers and two free non-Wells Fargo ATM transactions per fee period.
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Kait Scirri
Heads up – no, this article is wrong. You absolutely CANNOT use Ally Bank for your sole proprietorship. Today they told me that they’ll be shutting down my account because it’s being used for my sole proprietorship. I told them that I consulted with my lawyer AND Ally Customer Support before opening the account and, because a sole proprietorship is not a corporation of any kind, and is in fact just an individual, it would be ok. Well, it appears I was misinformed. I argued and they insisted.
So, DO NOT USE ALLY BANK for sole proprietorships.
Chase provides a great alternative. Capital One Spark Business accounts are awesome, but they are closed to new customers currently (as of Sept 2019). I went with Azlo. Such a cool option for new entrepreneurs. No fees. Unlimited transactions. Super cool features. I’m a big fan. Anyway, I was a HUGE Ally fan and advocate, but the very sudden threat of closing my account changed my mind quickly.
Thank you for sharing your experience, Bryan! We did further research and found that using an Ally Bank account for business purposes is a violation of Ally’s current terms and conditions. We have updated our article to reflect this.
Glad we could help!
Hey,
So my question is what if I have a check payable to my business I have all the documentation of ownership. I recently closed off accounts and closed the corp. but I wanted to know if I can deposit a check of 12k. I’m having a hard time at my personal banking institutions and am running out of options.
Hi Jay,
What we found after researching this is that you will get a hundred different answers asking a hundred different people. My best suggestion is asking the bank manager where you have your personal accounts for his/her suggestion because laws regarding this vary by state. In some states, it is just a matter of endorsing it properly. Wish I could give you a more concrete answer. Good luck!
I have been looking for a new business checking account as I have had a horrible experience with Bank of America for many years. They choose the largest check to go in first even though there are checks that are processing earlier just so they can give you more fees and then when I asked for a line of credit know one even called me back. They are the most money driven, unfriendliest bank you can choose.The only one thats seems friendly to a business owner is Capital One Spark business. I only wish there was a way of depositing cash.
Hi Jan,
If I’m understanding correctly, you want a business checking account at an institution that offers good customer service and also accepts cash deposits. The most convenient way of depositing cash is to use an ATM. I’d look for the bank/credit union with the most ATMs near you and then look into its customer service. Of course, the more ATM’s, the more bank branches as well. Note: You can only deposit cash into an ATM owned by a bank where your account resides. I think you’ll find an institution to match your needs.
So you can’t deposit cash to Ally or SBB through ATMs?
Hi Milo,
At this time, you can’t deposit cash to Ally at an ATM. An alternative at Ally would be to buy a money order with your cash and then deposit the money order by sending it to Ally Bank, P.O. Box 13625, Philadelphia, PA 19101. At Small Business Bank, you can deposit cash at any Shazam ATM. You can find a Shazam ATM here.