In 2023, the following banks will be the best options for nonprofits.
The Business Banking series of which this article is a part.
To be considered among the best banks for nonprofits, a bank must offer your organization either free or very low-cost checking services. Depending on the institution, nonprofit organizations may qualify for a free or reduced fee checking account.
Nonprofits can benefit from the lower-tier checking products with limited fees and business support products offered by banks that don't specialize in nonprofit accounts. All of these service providers care about the success of local nonprofits like yours and can help your organization expand its reach.
Provided with inbound links, here are the top eight online banking options for nonprofit organizations:
- True: the best option for charities due to its lack of cash deposit fees and numerous fee-free transactions.
- Bank of America offers the most convenient business checking accounts and the most consistent rewards programs.
- U.S. Bank: Ideal for non profit organizations with sporadic banking needs due to fundraising events
- For smaller organizations, there is no better traditional bank than Wells Fargo.
- When it comes to premium checking accounts, Chase is the best option for organizations with a high transaction volume.
- When you want a high yearly percentage yield (APY) and zero monthly banking fees, look no further than Bluevine*.
- Nonprofit organizations looking for employee financial wellness programs should look no further than PNC Bank.
- For the highest interest rates paid on any account balance, TIAA Bank is your best bet.
Federal Deposit Insurance Corporation-backed *Bluevine is a fintech platform for businesses. The Coastal Community Bank, an FDIC-insured institution
There is a restriction on the availability of providers due to their locations. To find out if your business falls within the Truist Bank, U.S. Bank, or PNC Bank service areas, have a look at their respective service areas and geographic restrictions.
Quickly Reviewing the Best Banks for Charities
When it comes to having no minimum deposit and the highest number of fee-free transactions, Truist is your best bet.
Truist is our top pick for nonprofits because its Community Checking account requires no opening deposit and has no recurring service charges. Truist allows the most free monthly transactions (225) and charges the lowest fee for additional transactions (35 cents each) compared to other banks that impose monthly transaction limits. Paying bills and managing finances digitally are both made available at no cost.
There are no fees associated with withdrawing cash from a Truist ATM, but other fees, such as $3 in the US and $5 abroad, may apply when using an ATM not affiliated with Truist.
The fact that Truist is primarily active in the East, Southeast, and Great Lakes regions of the United States is probably its biggest drawback. It serves 15 states and the District of Columbia. C And you'll need to stop by a physical location if you want to open an account.
The Best Business Checking Account for National Availability and Ongoing Rewards is at Bank of America.
Though they don't offer a nonprofit checking account specifically, nonprofits can benefit from Bank of America's Fundamentals Business Checking. Monthly fees are optionally waived for deposits of ,500 or more.
Although Bank of America accounts don't come with as many free transactions as those at Truist or US Bank, they are more widely accessible across the United States. Bank of America might be better than Truist all things considered if customers were allowed unlimited risk-free deposits.
The Business Advantage Relationship Banking plan from Bank of America is scalable, so if your nonprofit expands and starts requiring a higher monthly cash deposit or transaction limit, you can make the switch. See which of the two options is better suited to your nonprofit by comparing the two accounts. A Bank of America banker can direct you to the best account option for your specific situation.
As an added bonus, Bank of America provides its customers with exceptional ongoing rewards. Through the use of the company's business credit cards, you can earn up to $500 cash back for deserving actions, in addition to cash back and travel rewards. Credit card reward rates can go as high as 75%, and business savings accounts can offer an extra 5% to 20% in interest.
Additionally, Merrill's financial advisors offer exceptional business savings, CDs, lending products, and financial analysis to growing nonprofit businesses. Bank of America is one of the best banks for small businesses because it can adapt to your company's ever-changing needs.
U S Best Bank for Charities That Make Occasional Large Deposits due to Fundraising Events
U.S. Bank is a good option for charities that have irregular deposit and transaction schedules due to things like large one-time fundraising events. S A nonprofit organization should open a bank account. It is a regionally limited bank like Truist, but it offers one of the best nonprofit accounts available to organizations in the 26 states where it does business.
U.S. Bank has no monthly transaction or deposit limits, unlike the other providers on this list. S Annual banking restrictions For this reason, nonprofit organizations that host occasional but sizable events can benefit greatly from this bank's business checking services.
U S The bank allows as many as 1,800 free transactions per year (roughly 150 per month). Cash deposits up to $30,000 per year (about $2,50.00 per month) or 300 transactions per year are free.
A major disadvantage for U S Accessibility of the bank in different regions You can only open a checking account if you are a resident of one of 26 states. If you don't live in one of the above states but still want a physical location for your checking account, you can try either Bank of America or Truist.
For small organizations, Wells Fargo is the best traditional bank.
Wells Fargo's Initiate Business Checking might be an excellent fit for modest charities that don't process a lot of transactions each month. As long as you don't go over your monthly free transaction limit, it's a cheap way to do your banking.
The $10 monthly fee is also refunded if your account balance is at least $500 per day or $1,000 per month on average. However, each additional transaction after the first 100 is 50 cents. To that end, nonprofits that routinely process more than 100 transactions per month should look into either Bank of America or Truist.
The convenience of being able to access any one of Wells Fargo's 4,500+ locations or one of its 12,000+ ATMs across the country. It's a full-service bank, meaning it offers everything from savings accounts to credit cards to merchant services to business loans. As an added bonus, it provides protection for debit cards against fraud with no risk to the cardholder.
Chase Is the Best Option for Nonprofits with High Transaction Volumes That Require Premium Checking
Similarly to Bank of America, Chase does not provide a specialized business checking option for nonprofit organizations. To the contrary, when you bank with Chase, you gain access to a wide variety of services designed to help businesses like yours thrive, no matter how big or small they may be. Considered to be among the top options for small businesses, this account has many advantages.
As the provider of the best premium checking product available, Chase Platinum Business Checking may be the best choice in this guide if your organization is particularly transaction-heavy and cash-rich.
Chase's Business Complete Banking service also includes features that can be useful to the owner of a small non-profit organization. Find the right business checking account for your charity by comparing those offered by Chase.
Credit cards, personal loans, and home equity lines of credit from Chase, as well as auto loans from J. P Morgan, it offers business options if your organization has a high volume of transactions and cash flow. Commercial real estate (CRE) loans, payment processing, cash management, business credit cards, and merchant services are all part of these packages. Excellent point-of-sale (POS) and computer programs are also available from Chase.
For the highest APY and the fewest banking fees, go with Bluevine.
Unfortunately, Bluevine does not have as many banking products as some of its rivals in this guide, including a nonprofit checking account. However, it has the best small business line of credit and an excellent business checking product.
A high-yield, interest-bearing checking account is offered by this online-only bank. In order to gain 2 Bluevine business checking offers 0% APY on balances of $250,000 or less, provided that either $500 is spent monthly with the debit card or $2,500 is received in customer payments monthly.
In addition, you can get two annual checkbook order orders at no cost. No minimum balance or opening deposit is required, and neither are there any monthly fees. Further, it offers powerful integrations with other programs.
On the other hand, charities that deal frequently with cash might want to look into other possibilities. The fee for making a deposit at Bluevine is $4. There is a flat fee of .95 per transaction, and all Green Dot purchases must be made at a physical store. There is a $2 fee, too. 50 in addition to any fees charged by the ATM's network for making an out-of-network withdrawal.
Financial wellness programs for nonprofit employees are best offered by PNC Bank.
One of the best features of PNC Bank's Non-Profit Checking Account is free, unlimited access to educational webinars and seminars geared toward financial health. PNC WorkPlace Banking for Employees, a program for which your staff must register, makes this possible.
For the first three months, PNC will not charge you a monthly maintenance fee of $5 if your average monthly collected balance is at least $500. Up to 150 free transactions and $5,000 in free monthly cash deposits are available.
PNC also provides business banking services, including business loans, credit cards, and merchant services. Although restricted in scope, like Truist and U S While both banks are widely available, PNC Bank is more so. Locations in 28 states and the District of Columbia. C PNC Bank is happy to work with nonprofit organizations in the aforementioned areas.
A fee increase was implemented by PNC at the start of 2023. Deposits in excess of $5,000 per month will now incur a fee of 30 cents per $100. The company's business schedule of fees no longer includes domestic and international wire transfer fees, which means that these fees, if any, may vary.
No Matter How Much Money Is in Your Account, TIAA Bank Is the Best Way to Make Money
TIAA Bank is a great option if you want your business checking account to earn interest no matter how much money is in it. Non-Profit Checking Accounts begin accruing interest immediately, and there is no upper limit on interest accrual.
However, the costs may add up. A minimum deposit of $1,500 is required to open an account, and a minimum balance of $5,000 must be maintained in order to avoid the monthly fee of $14. Pay per month It's a top-tier account if you have no trouble reaching those requirements.
With TIAA Bank's network of over 80,000 ATMs, customers can make cash withdrawals at no cost to themselves. There are no overage charges, but fees from your carrier or a third party may still apply.
TIAA has only nine locations, all of which are in Florida, which is a major disadvantage. This is a web-only bank if you need any other services. Nonprofits that routinely deal with cash should use another option from this guide if they do not have access to one of those branches that accepts deposits of that type.
Methods We Used to Determine the Finest Banks for Charities
We are cognizant of the fact that charitable organizations would prefer fee-free banking services. We prioritized banking fees, accessibility, and features like bill pay and lending when selecting the best banks for nonprofits, and we looked for institutions that offer accounts tailored to the needs of nonprofits. We compared the quality of a bank's products and services to those of other banks that do offer nonprofit-specific accounts when a bank didn't offer any of its own.
There Are Times to Use a National Bank vs. a Credit Union
One advantage of a community bank or credit union over a national or online bank is the chance to get to know your banker on a personal level. Local credit unions and community banks are often the first options for sponsorships, grants, and donations for nonprofit organizations.
The customer status of the nonprofit organization is one factor that banks consider when deciding whether or not to make a donation. Choose a local bank or credit union if you value long-term relationships with your customers and the surrounding community more than access to a national banking system.
How to Get a Business Bank Account and What You Need to Know
Depending on the bank you choose, the following list of documents may be needed to open an account. Most of the time, you'll require :
- EIN (if you're a corporation) or SSN (if you're an individual) to identify your business.
- Certificate of Doing Business as (DBA) or Fictitious Name
- Incorporation Paperwork
- Legal records pertaining to the formation of the company, including any applicable ownership agreements
- Authorization to Operate
- Photo identification issued by the government, like a passport or driver's license
Answers to Frequently Encountered Problems
The Nonprofit Organization's Guide to Choosing a Bank
Find a bank that has low or no fees if your organization will be using their services. This includes not only monthly costs, but also transaction and deposit charges.
For a charitable organization, what kind of bank account is ideal?
Generally speaking, it's best to open a business checking account that caters to nonprofit organizations. The banks that offer these accounts not only have low fees, but also may provide your nonprofit with useful advice and extras.
Do charities require a separate checking account?
Although many financial institutions do provide nonprofit organizations with specialized business checking accounts, it is not obligatory that you use one of these accounts. For your nonprofit organization, you can use a regular business checking account with low fees and good service.
In conclusion
It's important to plan ahead when opening a business bank account for your nonprofit by estimating how many monthly and yearly transactions you'll have, how much money you'll deposit, and what other features you'll need. For your nonprofit organization, any of the above banks will provide a top-notch business checking account. Think about the nonprofit's needs and the number of free transactions offered by each service before deciding which one to use.
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