KeyBank Basic Business Checking Account 2024 Review
Some business owners use their personal bank accounts for their business when they first get started. They intend to open a business checking account, but the task never makes it to the top of their to-do list.
With so many business checking accounts available to choose from, it’s easy to get paralyzed by a large number of options.
It’s essential you open a business checking account to keep your personal and business finance separate, though.
Doing so can give you quick access to the financial performance of your business. If you set up your business correctly, keeping separate finances could also protect your personal assets.
To help speed up the process, we’ve reviewed the KeyBank Basic Business Checking Account. Here’s what you need to know to see if it’s a good fit for your company.
KeyBank Basic Business Checking Account Pros & Cons
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$5 Monthly Maintenance Fee
The KeyBank Business Checking Account charges a below-average $5 monthly maintenance fee. It’s even relatively easy to get the fee waived.
The fee is waived if you maintain an average ledger balance of $1,000 in your account or a $10,000 combined cycle-to-cycle average ledger balance in qualifying business deposit, loan, and line of credit accounts.
200 Free Monthly Transactions
Each month, you get 200 fee-free transactions. Each additional transaction results in a $0.40 fee.
KeyBank does not count ACH and bill pay transactions towards your free transaction limit.
$25,000 In Free Monthly Cash Deposits
Each month, you can deposit up to $25,000 in cash without paying any fees. Each additional $100 deposited results in a $0.18 fee. This is a large allowance for an account with such a small monthly maintenance fee.
Other Account Fees to Consider
KeyBank may charge some other fees with their KeyBank Business Checking Account. Here are some of the bigger fees to watch out for. Ask a banker for a complete list of fees that apply to the account.
Note: Fees may vary by zip code. An Indiana ZIP code was used for all fees quoted.
Other Account Fees - KeyBank Basic Business Checking
| Type | Fee |
|---|---|
| Domestic incoming wire transfer | $20 |
| Domestic outgoing wire transfer | $30 |
| International incoming wire transfer | $20 |
| International outgoing wire transfer | $45 |
| Branch coin and currency | $0.20 per roll, $0.60 per strap |
| Paper statement charge | $3 per statement |
| Early account closure (within 180 days of opening) | $25 |
Other Features of the KeyBank Basic Business Checking Account
KeyBank focuses on offering a low-cost business bank account. The bank does have 1,100 branches and 1,400 ATMs, which may make banking convenient in your area.
The bank offers 24/7 mobile check deposit and unlimited bill pay with online and mobile banking.
You can link this account to another KeyBank business account if you want to enable overdraft protection.
This account is KeyWork eligible. This program offers no-cost financial wellness benefits for your employees.
Comparison to Other KeyBank Business Checking Accounts
In addition to the KeyBank Basic Business Checking Account, you have two other business checking accounts to choose from.
KeyBank Business Interest Checking Account
The KeyBank Business Interest Checking Account pays interest but charges a $15 waivable monthly service fee. The fee can be waived with a $5,000 minimum daily ledger balance or $15,000 in combined cycle-to-cycle average ledger balance in qualifying accounts.
You’re limited to 100 free transactions and $25,000 in free cash deposits each statement period.
Key Business Reward Checking Account
Another option, the Key Business Reward Checking Account, charges a $25 monthly maintenance fee.
This fee can be waived with a $7,500 monthly average ledger balance or a $20,000 combined cycle-to-date average ledger balance in qualifying accounts. Alternatively, the fee can be waived by having a Key Merchant Services account linked to your checking account.
You get 500 fee-free transactions each month and $25,000 of fee-free cash deposits each month. The account does not pay interest, but you do get discounted wire transfers.
How to Open a KeyBank Basic Business Checking Account
Opening a KeyBank Basic Business Checking Account requires a $25 minimum opening deposit.
Unfortunately, it does not appear you can open an account online. Instead, KeyBank’s website directs you to call a professional or make an in-branch appointment.
Most banks require you to provide similar information when opening an account. You can call your local branch to get the exact list of information needed for your business type.
Here are some general guidelines about information that may be required:
- Multiple forms of photo and/or secondary identification
- Employer identification number
- Business formation documents
- Business bylaws or operating agreement
- Identifying and contact information for all owners, including Social Security number
- Identifying and contact information for all business employees with responsibility for the account
Choosing the Best Business Checking Account for Your Company
Business checking accounts come in many varieties. Some banks have several business checking account options to choose from. This can be overwhelming. A large number of options makes sense when you consider how many different types of businesses exist. Each business likely has different needs in a business bank account. Having options allows you to select the best choice for your company.
Here are a few tips to help you choose the best business checking account if you’re feeling paralyzed by the choices you have.
First, start by making a list of your business’s banking needs. This allows you to eliminate any bank account that isn’t a good fit.
Next, evaluate the significant fee factors that your business will likely run into. Most banks' fees revolve around three key factors. These include:
- Monthly transactions
- Monthly cash deposited
- Amount you can keep deposited in the account to meet minimum balance requirements and get monthly maintenance fees waived
Other factors could also play into deciding which account is best for your company. Here are a few concepts that may help you find the best business checking account.
Monthly maintenance charges
While personal checking accounts don’t usually charge monthly maintenance fees, business bank accounts often do. Expect these fees to start at around $10 per month for most basic accounts.
Minimum balance requirements
A bank may waive its monthly maintenance fee if you meet a minimum balance requirement. The amount and calculation of the amount vary by bank. Understanding how the amount is calculated can help you avoid unexpected fees.
Excess transaction fees
These accounts regularly offer a set number of free transactions each month. Each transaction beyond the limit may result in an excess transaction fee. The definition of a transaction may vary by bank.
Excess cash deposit fees
Cash deposits work similarly to transactions. Expect a free monthly cash deposit limit. After you exceed that limit, you’ll pay a fee per extra $100 of cash you deposit at most banks.
Wire transfer fees
Some businesses don’t use wire transfers, but others use them often. If you plan to make wire transfers, understand which types of transfers you use. Then, look at a bank’s fee schedule to estimate your monthly wire transfer fee cost.
Branch locations and hours of operation
You may want to prioritize a bank that has a branch near your business or home. You’ll likely want to consider the hours the locations are open, too. Finding a bank that is convenient to visit can minimize special trips to the bank.
ATM network and fees
If you plan to use an ATM, make sure the bank you choose has convenient ATM locations. You may want to consider the out-of-network ATM fees the bank charges.
Convenience features
Banks may offer features that make your life easier by allowing you to skip a branch visit. Features such as mobile check deposit or the ability to make scheduled transfers can help you save time.
Payment processing options
A bank may directly offer or work with another company to provide a payment card processing solution. These services allow you to accept card payments and deposit the funds into your account. The fees can add up quickly, so understand the fee structure before signing up for this service.
Software integrations
You likely want your bank to offer software integration with your accounting software at a minimum. Integrations can help reduce time spent and errors made in the data entry process.
Other bank features and products
Your business may decide finding the best loan rate is the highest priority for your business. If you want to keep all of your bank services at one location, you must decide if choosing a less-than-optimal business checking account is worth the convenience.
Final Verdict
The KeyBank Basic Business Checking Account could be a good fit for smaller businesses that don’t process more than 200 transactions per statement cycle.
It has a small $5 monthly maintenance fee that is easy to get waived. You also get a generous $25,000 of free monthly cash deposits. If you need an account that offers more free transactions, you can consider the Key Business Reward Checking Account as an alternative.
