Update on Azlo Business Checking
On March 31, 2021, Azlo will close all current customer accounts. Customers are being advised to transfer their funds to a different bank using fee-free instant transfers, by linking an external bank account, or by making a withdrawal from an Allpoint ATM.
After accounts are closed, customers will be able to log into a read-only version of their accounts until April 15, 2021, to download any statements they may need.
For top alternatives to Azlo business checking, check out our comprehensive guide to the best business checking accounts.
Azlo Business Checking: What to Know
When it comes to digital banking, Azlo was one of the pioneers in the industry and today they offer a great banking solution for entrepreneurs who don’t want to go to a physical bank to handle their business banking needs. Unlike Axos, which offers multiple business banking options (more on those in a minute), Azlo offers just one type of business bank account. Let’s dive deeper into what it’s like to open an Azlo business checking account.
Annual Percentage Yield: The Azlo business checking account does not earn any interest, which isn’t unusual for checking accounts.
Transaction Allowance: Unlike some other business bank accounts, Azlo does not have a monthly transaction limit. All transactions are free and the account holder can process as many transactions as they need.
Minimum Opening Deposit: There is no minimum opening deposit for this account, making it very accessible for new business owners.
Service Fees: A lot of business bank accounts charge service fees, but the Azlo business checking account is completely fee-free. That means no maintenance, overdraft, transaction, or card replacement fees. You also don’t have to worry about having a certain minimum balance in order to avoid paying a monthly service fee (which does come into play with some of the Axos accounts).
Additional Features: Some of the features associated with the Azlo business checking account may have a small processing fee.
Mobile check deposits and bank-to-bank (ACH) transfers
Incoming international and domestic wires
Instantly pull funds in from another account (processing fee)
Push money instantly out to owned accounts (processing fee)
Withdraw cash without incurring fees at any of the 55,000 ATMs in their partner network
Lock or unlock your card within seconds via the Azlo app
Connect your account to outside accounting software like QuickBooks Online, Xero, and Wave to automatically import your transactions
Create, send, and manage invoices
Accept card payments through outside programs like Stripe, Square, or PayPal
Allow clients to send you a check or bank transfer
Axos Business Checking: What to Know
Unlike Azlo which has one main type of business bank account, Axos offers a variety of business checking options. Here’s a breakdown of each of those options.
1. Axos Basic Business Checking
This type of checking account is ideal for business owners that are primarily looking for an easy and affordable account to keep their working capital.
Annual Percentage Yield: The Axos Basic Business Checking account is the only one of their business banking options that doesn’t accrue interest—meaning, there is no annual percentage yield (APY) associated with this account.
Activity Allowance: You have access to unlimited fee-free transactions per month.
Minimum Opening Deposit: This account has no minimum opening deposit requirement.
Service Fees: There is no monthly service fee associated with this account.
Additional Features
Nationwide surcharge-free ATM network
Cash deposit capability via MoneyPass and Allpoint networks
First set of 50 checks free
QuickBooks compatibility
Free online and mobile banking
Free bill pay
Remote check deposit anywhere (up to 60 deposits per month)
2. Axos Business Interest Checking
The next checking account option within the Axos business banking suite is the Business Interest Checking account. This account type allows member balances to be liquid and interest-bearing. This means that you can earn interest on your money even if you want to access it frequently. Typically, banks offer interest on accounts that are less liquid in nature (think savings accounts or certificates of deposit) and have low activity allowances or require early withdrawal fees.
Annual Percentage Yield: If your account balance is below $50,000, the APY will be 1.01%. As your balance increases, you’ll earn progressively less interest. For a full breakdown, consult their website.
Activity Allowance: You can perform up to 100 free items each month (debit, credit, or deposit) and up to 60 free items monthly through the Axos’ Remote Deposit Anywhere feature. This feature allows users to deposit paper checks by using their Android or Apple device. After you meet these thresholds, each item costs $0.50.
Minimum Opening Deposit: There is a $100 minimum opening deposit for new Business Interest Checking accounts.
Service Fees: Account holders that maintain an average daily balance of $5,000 will not incur a monthly fee. If the balance drops below this threshold, there is a $10 monthly maintenance fee.
Additional Features
Unlimited domestic ATM fee reimbursements
Cash deposit capability via MoneyPass and Allpoint networks
First set of 50 checks free
Free image statements
Free online and mobile banking
Free bill pay
3. Axos Business Premium Savings
For business owners who have more funds to invest upfront, the Business Premium Savings account may be a good fit.
Annual Percentage Yield: If you have a balance of $25,000 or more, you’ll have an APY of 0.20%. If your balance falls below that amount, you won’t earn any interest, meaning a savings account will be a less ideal option as you’ll lose flexibility and gain no interest.
Activity Allowance: Members of this account can access 20 items per month for free, but after that limit is surpassed each action costs $0.30. If you exceed the monthly limit, you’ll incur a $10 fee. This account type offers the highest APY through Axos, but is the least flexible. Especially when you consider that because federal law restricts savings accounts activities, you can only perform a total of six of the below actions:
Pre-authorized withdrawals transfers
Telephone withdrawals, transfers, or other electronic transmissions
Online and mobile banking transfers or bill payment transfers
Transfers by check, draft, or debit card from your savings account
Minimum Opening Deposit: The minimum opening deposit for this account is $25,000.
Service Fees: You’ll enjoy not having any monthly fees with this account, no matter what your balance is. There is also no average daily balance requirement fee associated with this specific account.
Additional Features
Free image statements and bill pay
Free online and mobile banking
Remote deposit from anywhere (up to 60 deposits per month)
4. Axos Business Savings
The final Axos business bank account we’ll look at is the Axos Business Savings account.
Annual Percentage Yield: This savings account has 0.20% APY and doesn’t require a minimum balance to accrue interest.
Activity Allowance: The Business Savings account allows you to take 20 actions per month, as well as the combined total of the six transactions allowed federally. After the 20 item limit, you have to pay $0.30 per item and a $10 fee for exceeding the six-item transaction limit. You can also deposit up to 60 items monthly via the Remote Deposit Anywhere feature.
Minimum Opening Deposit: The Axos Business Savings account requires a smaller minimum initial deposit than the Business Premium Savings account does; you are only required to have a $1,000 initial deposit.
Service Fees: This specific account requires a $2,500 average daily balance if you want to avoid being charged a $5 monthly maintenance fee.
Additional Features
Free online and mobile banking
Free image statements and bill pay
Remote deposit anywhere
The Bottom Line
At the end of the day, only you can decide if either of these business bank accounts are right for your business. In the Azlo vs. Axos comparison, Azlo is likely the best option for new businesses that don’t have a lot of cash on hand and don’t want to pay any service fees. While this account is completely fee-free with no balance minimums, you also won’t earn any interest.
On the other hand, Axos is best for more established businesses that have more liquid capital and are looking for a bank they can grow with. With their four different account types, you can find both checking and savings accounts to store your funds while earning interest. And as long as you can meet minimum balance requirements, you can skip the service fees.
If neither Azlo nor Axos seems right for your business, consider your other online banking options. If you prefer to do your banking in person, check out national or local options.
The post Azlo vs. Axos: Which Is Better for Your Business? appeared first on Fundera Ledger.