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Navy Federal Business Bank Account Review 2024

Author: Chandra Dhopatkar
Published: 03/24/2024 9:17 p.m. EST
Last Update: 06/05/2024 4:02 a.m. EST
Edited by: Jennifer Bonilla

Navy Federal Credit Union offers a free interest-earning business checking account. The drawback is membership is limited to current and former military personnel and their family.

Navy Federal Credit Union Business Bank Account — Navy Federal Business Bank Account

We’ll help you decide if Navy Federal offers what you need.

Our review process:

Considered features and offerings
Weighed pros and cons
Looked into fees
Compared against peers

Quick Review of Navy Federal Business Account

Navy Federal Credit Union distinguishes itself by serving the military and veteran communities, offering business banking solutions designed with these members in mind.

The Navy Federal business bank account caters to varying business needs, from startups to established enterprises, with tiered services to match.

Navy Federal Credit Union Pros and Cons

We uncovered several pros and cons in our review.

Before we get into those we recommend you first have a look at our Best Business Bank Accounts and Best Online Business Bank Accounts reviews.

They shed light on what the top banks offer to help you decide if NFCU is the right business bank for your company.

Pros:

No monthly service fees for the basic business checking account.
Wide range of additional business services and supports.
Extensive in-network ATM access.

Cons:

Membership eligibility restricted to the military, veterans, and their families.
Fees for non-electronic transactions beyond the included limit.

Navy Federal Business Bank Account Fast Facts:

Navy Federal Credit Union, founded in 1933, has grown to serve the unique financial needs of military members, veterans, and their families.

It stands as the world’s largest credit union, offering a broad range of financial products including business banking solutions.

Dedicated to serving those who serve, Navy Federal combines the community-oriented approach of a credit union with the comprehensive financial services typically found at larger banks.

With business bank account benefits like competitive rates, minimal fees, and a commitment to exceptional member service, Navy Federal distinguishes itself as a trusted financial partner for both personal and business banking needs.

Is a Navy Federal Business Checking Account Right for You?

A Navy Federal Business Checking account is ideally suited for military members, veterans, and their families looking to grow a business with a financial institution that understands their unique challenges and opportunities.

Whether you’re running a startup, managing a nonprofit, or leading a growing business, Navy Federal’s offerings are designed to support your ventures with tailored services like special lending options, business savings accounts, and merchant services.

If your business values a banking relationship built on mutual respect, understanding, and support, with a focus on benefiting the military community, then Navy Federal Credit Union could be your ideal choice.

Their dedication to integrating with tools like QuickBooks and providing specialized business advice means they’re more than just a bank—they’re a partner in your business’s growth and success.

Navy Federal Business Bank Account Options and Requirements

Navy Federal offers three main business checking accounts: Basic, Plus, and Premium, each designed to cater to businesses at different stages. The minimum opening deposit requirement varies, ensuring accessibility for various business sizes. Here’s a breakdown of each plan:

Basic Business Checking

Features:

Signers: Account ownership allows for the owner and one signer.
Monthly Service Fee: No monthly service fee is applied, making it an economical choice for small businesses and startups.
Monthly Transaction Fees:
- Electronic transactions: No fees.
- Non-electronic transactions (such as checks processed, and in-branch transfers, deposits, and withdrawals): The first 30 transactions are included each month, with each additional transaction costing $0.25.

Key Requirements and Additional Costs:

Non-electronic transactions beyond the first 30 are charged at $0.25 each.
Various services like stop payment on a single item ($20.00), multiple items ($25.00), and cashier’s checks over two per day ($5.00 each) incur additional fees.

Business Plus Checking

Features:

Signers: Allows for unlimited signers, offering more flexibility for growing businesses.
Monthly Service Fee: An $8.00 service fee applies, though this can offer value through the account’s expanded capabilities.
Monthly Transaction Fees:
- Electronic transactions: No fees.
- Non-electronic transactions: The first 50 transactions are included each month, with each subsequent transaction costing $0.25.

Key Requirements and Additional Costs:

The $8.00 monthly fee reflects the account’s capacity to accommodate a higher volume of transactions and additional signers.
Similar to the Basic account, additional charges apply for services like stop payments, cashier’s checks beyond the allotted number, and account number reassignments.

Premium Business Checking

Features:

Signers: Like the Plus account, it allows for unlimited signers.
Monthly Service Fee: A $20.00 monthly fee is charged, which can be waived if an average daily balance of $5,000 or more is maintained.
Monthly Transaction Fees:
- Electronic transactions: No fees.
- Non-electronic transactions: Includes the first 100 transactions per month, with a $0.25 fee for each additional transaction.

Key Requirements and Additional Costs:

The higher monthly service fee accommodates the substantial transactional needs of larger businesses.
Fees for non-electronic transactions over the included 100, and other ancillary services like wire transfers, money transfers, and special check orders, are in line with those for other accounts, adjusted for the scale of operations this account is designed to support.

General Fees Across All Accounts:

Returned Check/ACH Debit for Non-Sufficient Funds: $29.00 per item.
GO BIZ® Debit Card Point-of-Sale Overdraft Fee: $29.00.
Wire Transfers: Costs vary by type; incoming wires are free, outgoing domestic wires are $14.00, and outgoing international wires are $25.00.
Foreign Transaction Fee: 1% of the transaction amount for foreign transactions made with the GO BIZ Debit Card.

This breakdown details the specifics of each account type, offering insights into which might be the best fit depending on the size of the business, its transaction volume, and its banking needs.

Navy Federal has structured these accounts to cater to a wide range of businesses, from those just starting out to those with more complex banking requirements.

Monthly Fees and Fee Waivers

The monthly service fees range from $0 for the Basic account to $20 for the Premium, with waivers available based on minimum balance requirements. Keep an eye on potential fees for exceeding non-electronic transaction limits.

Interest Rates (APY)

Interest rates on these accounts are low, reflecting the typical yield for business checking accounts, but it’s important to consider how this might affect your business finances.

ATM Access and Cash Deposits

Navy Federal boasts extensive in-network ATM access without fees. However, there are fees associated with using out-of-network ATMs. The accounts have generous cash deposit allowances, with fees applied for exceeding set limits.

Transaction Limits

Each account tier offers a set number of free monthly electronic and non-electronic transactions, with fees imposed for exceeding these limits, which could affect businesses with high transaction volumes.

Online Banking and Mobile App

Navy Federal’s online banking and mobile app include features such as bill pay, mobile deposits, and comprehensive account management tools, offering a seamless digital banking experience.

Customer Service

Customer service is available through various channels, including phone, online chat, and in-branch visits, with Navy Federal known for its strong service reputation.

Additional Services

Navy Federal offers additional business services like merchant services and small business loans, enhancing the banking experience for business owners.

Final Thoughts and Recommendations

Navy Federal’s business banking solutions stand out for their commitment to serving the military community, with a range of accounts and services to match different business needs. If your business has high transaction volumes or requires specific banking features, consider how Navy Federal’s offerings align with your needs.

More Business Bank Reviews

For comparison, you might also explore reviews of other business banks. Here are some of the best business banks we’ve reviewed.

FAQs

How can I open a business account in 2024?

To open a business account in 2024, you’ll need to choose between checking and savings accounts based on your financial needs. For instance, to open a Navy Federal business account, you must meet their eligibility requirements, which include being a member of the military, a Department of Defense employee, or a government contractor. Start with the business membership pre-application on the Navy Federal website.

What are the requirements to open a Navy Federal business checking account?

To open a Navy Federal business checking account, you must be a Navy Federal member in good standing, which includes members of the military, Department of Defense employees, and contractors assigned to U.S. government installations. You will also need to complete a business membership pre-application and meet the minimum deposit requirement.

Which account offers the best business checking features?

Navy Federal offers several options, but their best business checking account is the Business Plus Checking Account. It offers unlimited transactions, round-the-clock access, and is tailored for businesses with more complex banking needs. It’s right for your business if you’re looking for modest monthly fees and extensive account details.

How much is the minimum deposit to open a business bank account?

The minimum deposit to open a business bank account varies by account type and institution. For Navy Federal, the minimum deposit is $255 for sole proprietorships and $250 for other types of businesses. This initial deposit is crucial to get your account up and running.

What are the benefits of opening both checking and savings accounts for my business?

Opening both checking and savings accounts for your business allows for better financial management. The checking account offers unlimited electronic transactions and is ideal for daily operations, while the savings account helps in earning interest on your reserve funds. Depending on your account, Navy Federal also provides accounts in good standing with various benefits.

Can I get credit cards when I open a business bank account?

Yes, when you open a business bank account, especially with Navy Federal, you can apply for business credit cards. Navy Federal offers options like Visa or Mastercard, which are perfect for business owners needing flexible spending power. Eligibility for these credit cards depends on your business and account standing.

What should I consider before choosing the right account for my business in 2024?

Before choosing the right account for your business in 2024, consider your business’s size, transaction volume, and financial goals. Consult a financial advisor to understand the account offers, including checking and savings accounts, credit cards, and loans. Navy Federal’s business checking account is free and might be the best option if you’re a member of the Department of Defense community, offering benefits tailored to individuals and businesses affiliated with the military.

How many signers are required to open a business checking account at Navy Federal?

To open a business checking account at Navy Federal, the number of signers required depends on the business structure. For sole proprietorships, only one signer is required, whereas other types of businesses might need multiple signers. This ensures that all financial transactions are authorized by the business owners or designated representatives.

What benefits do retired members of the Space Force receive when opening a checking account with Navy Federal?

Retired members of the Space Force, as well as other branches of the military, receive several benefits when opening a Navy Federal checking account. These benefits include access to over 350 branches worldwide, includes unlimited electronic transactions, and eligibility for special offers and rates. Navy Federal recognizes the service of retired members by providing banking solutions tailored to their needs, ensuring their accounts are in good standing with the credit union.

Chandra Dhopatkar, MBA

Chandra, founder of “Build Business Credit in 30 Days,” specializes in increasing business valuations by helping companies build strong business credit.