Open a BMO Harris Premier™ Account online and get a $500 cash bonus when you have a total of at least $7,500 in qualifying direct deposits within the first 90 days of account opening. Expires 9/15. Conditions Apply.
When you’re a small business owner, a cash-back credit card can be one of your most valuable tools for trimming business expenses. Good thing there’s a nearly infinite number of cards that offer 1% or 1.5% cash back on all purchases. Some even offer 2%.
The Bank of America Business Advantage Customized Cash Rewards Credit Card goes even farther. It offers 3% back in a category of purchases that you choose — a very strong return indeed.
It gets better. New users start out with an excellent spend-based sign-up bonus and an unusually long 0% intro APR purchase financing offer. If you’re a member of Bank of America’s Preferred Rewards program, you can earn even more — up to 75% over and above your cash-back haul.
All told, it’s a fantastic package for a card with no annual fee. Let’s dive into the details.
What Is the Bank of America Business Advantage Customized Cash Rewards Credit Card?
The Bank of America Business Advantage Customized Cash Rewards credit card is a cash-back business card with no annual fee. It offers a solid cash-back earning structure, a strong 0% intro APR offer, and an above-average sign-up bonus.
Let’s start with the sign-up bonus: Earn a $300 online statement credit after making $3,000 in purchases in the first 90 days of account opening. Not bad.
The card earns 3% cash back in the business spending category of your choice. It also earns 2% cash back on dining purchases. Earnings in the 3% and 2% categories apply only to the first $50,000 in annual combined purchases, but you’ll always earn unlimited 1% back on all other purchases. Yes, that includes purchases in the 3% and 2% categories above the annual spending cap.
This card offers even better rates if you qualify for the Bank of America Preferred Rewards program. The Preferred Rewards program has three tiers for customers with less than $1 million in combined Bank of America and Merrill Lynch accounts: Gold, Platinum and Platinum Honors.
Which you qualify for depends how much money you have on deposit in eligible accounts. The details are a bit complex, but basically, you can earn a bonus worth 25%, 50%, or 75% on your base cash-back rewards.
Best-case scenario, you can earn 5.25% cash back in your selected choice category and 3.5% cash back on dining purchases on the first $50,000 in those combined purchases each calendar year, plus unlimited 1.75% cash back on all other purchases.
Other notable cardmember benefits include:
Overdraft protection for your linked Bank of America deposit account (if applicable)
Free access to your company’s Dun & Bradstreet business credit score
Travel and emergency services, including emergency ticket replacement, legal and medical referrals while traveling, and lost luggage assistance
Up to $100,000 in travel accident insurance
Insurance coverage for eligible rental cars
What Sets the Bank of America Business Advantage Customized Cash Rewards Credit Card Apart?
This card has several features that help set it apart from other business cash rewards credit cards.
Overdraft protection for linked Bank of America deposit accounts. If you have a Bank of America deposit account, you can link it to your card to prevent declined purchases, returned checks, or other overdrafts. This service involves per-transaction fees, but that could be better than a bounced check.
Basic travel and emergency services. This card is not a travel rewards card, but it does offer some basic travel and emergency services, plus travel insurance coverage. Highlights include up to $100,000 in travel accident insurance, auto rental insurance on rentals paid in full with the card, emergency ticket replacement, lost luggage assistance, and legal and medical referrals while traveling.
0% intro APR promotion. This card comes with 0% intro APR on purchases for the first 9 billing cycles. After that, variable regular APR applies. While not long by consumer card standards, this promotion is longer than most business cards’.
No annual fee. This card has particularly strong features for a no-annual-fee business credit card.
Key Features of the Bank of America Business Advantage Customized Cash Rewards credit card
The Bank of America Business Advantage Customized Cash Rewards credit card has a solid earning structure, a sign-up bonus, and a somewhat unusual 0% intro APR promotion offer.
Sign-Up Bonus
Earn a $300 online statement credit after making $3,000 in purchases in the first 90 days of account opening.
Earning Rewards
With this card, you can earn 3% cash back in the category of your choice. You can choose from gas stations (which is the default category) or:
Office supply stores
Travel
TV/telecom and wireless communications
Computer services
Business consulting services
You can change your chosen category up to once a month through Bank of America’s app or online banking site.
You also earn 2% cash back on dining purchases. You’ll earn 3% and 2% cash back on the first $50,000 in combined choice category and dining purchases each calendar year, and 1% after that.
And you earn unlimited 1% cash back on all other purchases, with no caps or restrictions.
Preferred Rewards Bonus
If you belong to Bank of America’s Preferred Rewards loyalty program, you can earn up to 75% more cash back on every purchase.
That means you could earn:
Up to 5.25% cash back in your selected choice category
Up to 3.5% cash back on dining purchases on the first $50,000 in those combined purchases each calendar year
Up to 1.75% cash back on all other purchases with no limits
See Bank of America’s Preferred Rewards guide for more on balance requirements and potential bonus earnings, plus other program perks.
Redeeming Rewards
You can redeem your cash-back rewards as:
A deposit into your Bank of America checking or savings account
A statement credit to your credit card account
A check mailed to your address on file
Regardless, your rewards don’t expire as long as your account remains open and in good standing.
0% Intro APR Promotion
New cardholders may qualify for the intro APR promotion, where you can get 0% intro APR on purchases for the first 9 billing cycles. After the intro APR offer ends, variable APR applies.
Important Fees
There’s no annual fee. The foreign transaction fee is 3%. Other fees may apply, including balance transfer and cash advance fees.
Overdraft Protection
This card offers an optional service to help prevent declined purchases, returned checks or other overdrafts. When you link your credit card to a Bank of America business checking account, you get overdraft protection through Balance Connect. Terms and fees apply.
Credit Required
This card requires excellent credit to qualify.
The good news is that you can qualify on personal credit if you have limited or no business credit history. The bad news is that if your FICO score is much below 720, or your personal credit history is limited, then you may have trouble being approved.
Pros & Cons
As with any small-business credit card, the Bank of America Business Advantage Customized Cash Rewards card has some high points and some low points.
Up to 3% cash back in your choice of purchase category
Excellent sign-up bonus
Up to 75% more cash back for Preferred Rewards members
0% intro APR offer on purchases
3% and 2% spending categories have an annual spending cap
Intro APR doesn’t apply to balance transfers
3% foreign transaction fee
Pros
Overall, this is an above-average cash-back credit card for small business owners who aren’t looking for tons of frills.
Up to 3% cash back in a category of purchases that you choose. This feature adds crucial flexibility to what’s otherwise a pretty straightforward rewards program.
Excellent sign-up bonus. For a no-annual-fee small-business card, this sign-up bonus is among the very best.
9 months of 0% APR financing on new purchases. Few business credit cards offer any sort of introductory financing, let alone an offer stretching as long as this.
Up to 75% more cash back for Preferred Rewards members. If you have enough on deposit with Bank of America or Merrill Lynch, you could qualify for a tidy boost to your cash-back earnings.
Cons
This card isn’t ideal for high spenders nor anyone with existing high-interest credit card balances to pay down.
Caps on 3% and 2% cash-back categories. Your potential 3% and 2% cash-back earnings are limited to the first $50,000 in combined purchases each calendar year. In other words, the most you can possibly earn in those categories is $1,500 per year.
Introductory APR isn’t valid for balance transfers. This is a notable downside if you’re already struggling with high-interest business credit card debt.
3% foreign transaction fee. Leave this card stateside when you travel abroad and bring one of the many small-business cards with no foreign transaction fees.
How the Bank of America Business Advantage Customized Cash Rewards credit card Stacks Up
The card’s closest competitor is probably the U.S. Bank Triple Cash Rewards Visa Business Credit Card. Here’s how the two cards compare:
Bank of America Business Advantage Customized Cash Rewards credit card
U.S. Bank Triple Cash Rewards Visa® Business Credit Card
Annual Fee
$0
$0
Sign-Up Bonus
Good
Better
Rewards Rate
Up to 3%
Up to 3%
0% Intro APR
0% intro APR on purchases for the first 9 billing cycles
0% intro APR on purchases and balance transfers for the first 15 billing cycles
Foreign Transaction Fee
3% of each transaction
3% of each transaction
Credit Needed
Excellent
Good or better
Final Word
The Bank of America Business Advantage Customized Cash Rewards Credit Card has a list of features that’s almost as long as its name. But the key feature is 3% cash back on a category of your choice, which can become as much as 5.25% when you’re a top tier member of their Preferred Rewards program. That’s where the real value lies.
And so for most small-business owners who want to earn cash back, this card is a strong competitor. For existing Bank of America customers who qualify for their Preferred Rewards program, it’s a no-brainer.
Editorial Note:
The editorial content on this page is not provided by any bank, credit card issuer, airline, or hotel chain, and has not been reviewed, approved, or otherwise endorsed by any of these entities. Opinions expressed here are the author’s alone, not those of the bank, credit card issuer, airline, or hotel chain, and have not been reviewed, approved, or otherwise endorsed by any of these entities.
The Verdict
Our rating
Bank of America Business Advantage Customized Cash Rewards Credit Card
This small-business card makes the most sense for those who are looking for cash back from their most frequent business purchases. It’s also ideal for existing members of the Bank of America Preferred Rewards program, which offers substantial cash-back bonuses on top of this card’s base rewards program. Throw in a $300 new account bonus plus 9 months of 0% APR financing on purchases and you have yourself a very competitive product.
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Jason Steele is one of the nation’s leading experts in credit cards and travel rewards since 2008. Jason is also the founder and producer of CardCon, which is The Conference for Credit Card Media. Jason lives in Denver, Colorado where he enjoys bicycling, snowboarding and piloting small airplanes.
Direct Link to offer (affiliate link here and below)
Amazon is offering Prime members 6% cashback on their credit card when shopping at Amazon and Whole Foods on Prime Day, July 11-12, 2023.
Amazon credit cardholders also get an extra 5%-20% back on select items: 5%, 10%, 15%, 20%
Our Verdict
You can easily reload your Amazon balance at the 6% rate on July 11-12 to juice up earnings a bit. Prime members always earn 5% at Amazon and Whole Foods on the card. I believe this 6% promo works with both the Chase and Synchrony versions of the credit card.
We’ll add this to our main Prime Day page (constantly updated). Separately, Prime members can also get an instant $200 signup bonus on the Prime Visa card now.
If you listened to the 2020 presidential debates, you may remember certain controversial topics, such as how the coronavirus pandemic should be managed and who should replace Ruth Bader Ginsberg in the Supreme Court. However, there was another contentious matter you may have missed: minimum wage.
Since 2009, the federal minimum wage has sat at $7.25, and the question many economists, researchers, and even politicians are facing today is whether or not that number is sufficient. In recent years, the new rate that’s most frequently proposed is $15.00 an hour, more than double our current minimum wage. But to determine whether or not the federal minimum wage should increase — and if so, how much — it’s important to ask a few other questions first.
Read on to discover the history of America’s federal minimum wage, including its original intent, its evolution, and its possible future.
What’s Ahead:
How did minimum wage begin, and why?
Although Americans have reaped the benefits of a federal minimum wage since 1938, French workers in the silk industry were the first to introduce the concept more than 100 years prior.
In 1831, these workers went on strike to demand a fair and liveable wage, and while their efforts did not prompt action, the idea lived on. New Zealand became the first nation to set a minimum wage in 1894, and four years later Samuel Gompers, the founding president of the American Federation of Labor, began the conversation in America with his article titled “A Minimum Living Wage.”
Massachusetts eventually became the first American state to mandate minimum wage in 1912, and additional states, as well as industries and companies, followed suit throughout the next couple of decades.
Despite this progress, the Supreme Court slowed the growth of minimum wage provisions, arguing that they interfered with the Constitution. Then, in 1937, the Court experienced a change of heart, in what historians now refer to as “the Big Switch.”
In the case West Coast Hotel Co. v. Parrish, Justice Owen Roberts sided with the court’s liberal minority, resulting in a five-four decision that upheld Washington state’s minimum wage law. More importantly, this decision determined minimum wage laws do not violate the Constitution.
A year later, Congress passed the Fair Labor Standards Act (FLSA), which established our nation’s first federal minimum wage at $0.25 per hour.
How has the minimum wage changed over time?
Since 1938, Congress has raised the federal minimum wage a total of 22 times and expanded the FLSA to cover more workers and industries. Listed below is a brief timeline, covering some important moments in the history of the minimum wage.
1949 – Congress raises the federal minimum wage to $0.75.
1961 – Congress amends the FLSA to include more workers in the retail trade sector.
1963 – The Equal Pay Act ensures equal pay for workers covered by the federal minimum wage requirement, regardless of gender.
1968 – The federal minimum wage peaks in purchasing power, at $1.60 per hour.
After 1969 – The federal minimum wage stops increasing with inflation.
1971 – Congress amends the FLSA to include all non-supervisory government workers.
1989 – Congress amends the FLSA to apply only to businesses with $500,000 or more in revenue, as well as small retail businesses when they engage in interstate commerce.
2009: – The federal minimum wage increases to $7.25, which has remained through 2020.
What is the current minimum wage?
Today’s federal minimum wage is $7.25, which last increased in 2009; however, many states have their own minimum wage laws, as well as some cities like Seattle and New York City.
In fact, there are 29 states — as well as the District of Columbia, Guam, and the Virgin Islands — with minimum wages that are higher than the federal minimum wage.
The District of Columbia has the highest minimum wage, at $15.00, followed by Washington at $13.69. The remaining 21 states have either a minimum wage requirement that equals the federal minimum wage (16 states, plus Puerto Rico) or no established minimum wage requirement (five states).
Is “minimum wage” the same as “living wage”?
The terms “minimum wage” and “living wage” have been used interchangeably, but they are far from the same.
First of all, as established above, the minimum wage is determined and enforced by the government; living wage is not. In addition, while the federal minimum wage was signed into law nearly a century ago, the most well-known living wage calculator was developed and introduced in 2004 by Amy Glasmeier, a professor at the Massachusetts Institute of Technology.
However, the most important difference between these terms is the process they use to develop rates. Glasmeier’s living wage calculator uses expenditure data from a specific state to:
“determine the minimum employment earnings necessary to meet a family’s basic needs while also maintaining self-sufficiency within that region.”
This includes costs for “a family’s likely minimum food, childcare, health insurance, housing, transportation, and other basic necessities (e.g. clothing, personal care items, etc.).”
Meanwhile, the federal minimum wage was developed primarily to prevent unethical business practices and keep American’s out of poverty. In 1969, the U.S. government adopted a formula designed by Mollie Orshansky, a family economist and food economist for the United States Department of Agriculture, as the official federal poverty guideline.
Orshansky discovered that the cost of food amounted to roughly one-third of a family’s total cost of living, after taxes. Consequently, she theorized, one could reasonably estimate a family’s total budget by multiplying food expenses by three.
Today, Orshansky is also known as “Miss Poverty,” and minimum wage laws, at the federal and state levels, roughly meet or exceed the poverty thresholds she developed.
Minimum wage today: a source of controversy
For decades, the minimum wage has provided protection and security for Americans, but today its efficacy, and future, is up for debate.
As the question of whether or not to raise the current federal minimum wage lingers in the spotlight, economists, researchers, and politicians are divided on the purpose of this legislation altogether. Should minimum wage be enough to provide Americans with a comfortable living or merely keep them above the poverty line? Should it be a sustainable, long-time salary or a simply starting wage?
Each side has ample evidence to support its claims, which may help us understand why the solution for this issue is not as simple as it may seem.
The argument for increasing the minimum wage to a living wage
The federal minimum wage has changed 22 times since 1938 and has expanded to encompass a great number of American workers. However, increases have been irregular and inconsistent, hindering the impact of minimum wage laws on some generations.
In fact, we’re currently experiencing the longest period without an increase, and since 1969 the federal minimum wage has stopped adjusting to meet rising inflation. While the costs for transportation, housing, food, and more have increased in recent decades, wages have essentially remained stagnant. As a result, workers today earning $7.25 are being paid 17% less than they would have been 10 years ago, and 31% less than their counterparts in 1968, when adjusted for inflation.
In order to make ends meet, Americans must work longer and harder today than identical workers from 50 years ago, and many still rely on government assistance. Unfortunately, even if the federal minimum wage rose to compensate for inflation, many economists indicate it would not be enough, and increasing the wage to $15 an hour may not be either. Based on a recent analysis from the National Low Income Housing Coalition, a worker would need to make $17.90 an hour just to afford rent for a one-bedroom apartment nationally.
The argument against increasing the minimum wage to a living wage
Many opponents agree that, of course, increased pay seems like a worthwhile economic endeavor; but some researchers have found the ripple effects of raising wages up to $15.00 could produce the opposite results intended.
In fact, recent studies predict increasing the minimum wage, specifically to $15.00 per hour, could actually hurt businesses, forcing employers to reduce hours, limit hiring, and even lay off employees to meet the minimum wage requirements. Opponents also fear too much regulation over wages could limit a free market economy and hinder competition and growth among businesses.
Another issue, opponents say, is the fact that living costs vary from state to state; they argue minimum wage legislation should be left up to the states, rather than the federal government.
According to the poverty guidelines from the U.S. Department of Health and Human Services, a two-person household would need to earn $17,420 each year to clear the poverty line. However, everyday expenses like gas, groceries, and housing fluctuate based on your location. For example, rent for a two-bedroom apartment in New Mexico costs roughly $847 per month, but in California, the average cost is nearly three times the amount, at $2,495! That’s $29,940 for rent alone each year!
Finally, those opposed to increasing the federal minimum wage, specifically increasing the wage to $15.00, encourage supporters to first consider incomes and poverty levels globally. Even with a minimum wage under $5.00 an hour, the United States would maintain its place among the top 20% of all global incomes.
What does the future of minimum wage look like?
Newly elected President Joe Biden is in favor of increasing the federal minimum wage to $15.00, but even still the future of minimum wage remains unknown.
In 2019, the U.S. House of Representatives passed the Raise the Minimum Wage Act, a bill that would increase the federal minimum wage to $15.00 by 2025. The bill has been stalled in the Senate, but 2021 has welcomed new members, which may lean counter to their predecessors. Nevertheless, the bill’s future is far from certain, as political parties in both the House and the Senate are divided fairly equally.
Whether the federal minimum wage changes in the near future or not, it’s important to manage the income you have now and save where you can. Financial apps like Chime® makes it a little easier with automatic savings. For instance, every time you spend using your Chime Visa® Debit Card*, Chime rounds up your payments and purchases to the nearest dollar, then adds the change to your savings account.^ You can also automatically transfer a percentage of your paycheck into your savings to reach your financial goals a little faster.1
* Banking services and debit card provided by The Bancorp Bank, N.A. or Stride Bank, N.A., Members FDIC, pursuant to a license from Visa U.S.A. Inc. and may be used everywhere Visa debit cards are accepted. ^ Round Ups automatically round up debit card purchases to the nearest dollar and transfer the round up from your Chime Checking Account to your savings account. 1 Save When I Get Paid automatically transfers 10% of your direct deposits of $500 or more from your Checking Account into your savings account.
Summary
The federal minimum wage is currently $7.25, and it’s remained there for more than a decade. This is the longest period the minimum wage has ever experienced without an increase, and in light of this reality, the future of this legislation is hotly debated.
Many supporters of increased minimum wage propose a new rate of $15.00 an hour to boost workers’ income closer to living wage estimates. Those in opposition suggest alternatives like $12.00 an hour or allowing the states to determine their own minimum wage laws.
Whatever change our country invites, its impact on American industries, businesses, and families remains controversial, and its future uncertain.
If you’re a small business owner, one of your top priorities is surely to save money on unavoidable expenses. Purchasing business supplies online at Amazon.com is one of the ways many small business owners also save time.
With the Amazon Business Prime Card from American Express, you can do both while earning up to 5% back on your Amazon purchases. Or you can forgo the hefty cash-back rate and receive 90 days of interest-free financing on your Amazon charges instead. And for purchases made anywhere else American Express is accepted, you can earn unlimited 2% back, regardless of your Prime membership status.
But this isn’t a premium rewards credit card, and it doesn’t offer you any travel rewards or benefits. It’s a simple card designed to save you the most money on your Amazon charges and other business expenses, and not much else.
What Is the Amazon Business Prime Card?
The Amazon Business Prime Card is a co-branded small-business credit card that’s accepted anywhere American Express cards are. When you use it to shop at Amazon.com, Amazon Web Services (AWS), Amazon Business, or at Whole Foods Market, you can earn 5% back on your purchases with a valid Amazon Prime Business membership or 3% without one.
Alternatively, you can choose to receive 90 days of interest free financing on those purchases. Either way, there’s no annual fee or foreign transaction fee.
This card also offers 2% back at restaurants, gas stations and wireless phone services purchased directly from service providers. You earn 1% back on all other purchases.
Additional benefits are limited but include extended warranty coverage and a purchase protection plan that covers losses from theft or accidental damage. The card’s online dashboard features enhanced data views that show purchases listed by item and are easy to download.
What Sets the Amazon Business Prime Card Apart?
This card has several positive features that distinguish it from its competitors.
5%/3% back or 90 days of financing. It’s great to have this choice. With it, you can maximize your rewards or minimize your interest charges, whichever is more important to you at the time.
Additional cash back outside of Amazon. It’s competitive to earn 2% back at restaurants, gas stations and for wireless phone services expenses.
Amazon Business Enhanced Data Views offer more insights into your expenses. The tight integration between Amazon and American Express allows you to get a better look at your expenses and where you might be able to tighten up.
Key Features of the Amazon Business Prime Card
This small-business credit card offers a simple rewards program and a few key benefits beyond that.
Sign-Up Bonus
You earn a $125 Amazon.com gift card upon approval. There’s no minimum spending requirement, so this is basically a lock to earn.
Earning Rewards
If you have a valid Amazon Prime Business membership, you earn your choice of 5% back or 90 days of interest-free financing on purchases from the following vendors:
Amazon.com
Amazon Web Services (AWS)
Amazon Business
Whole Foods Market
You only earn 5% rewards on your first $120,000 of spending each calendar year, which adds up to $6,000 in potential annual rewards at this tier. If you exceed the $120,000 spending cap in a given year, you can still take advantage of 90-day interest-free financing on eligible purchases.
If you don’t have a valid Amazon Prime Business membership, you earn 3% back on the first $120,000 in eligible spending. The 90 days’ interest-free financing option still applies.
Beyond the 5%/3% tier, this card earns 2% back at restaurants, gas stations, and on eligible wireless phone service purchases. It earns 1% back on all other purchases.
Redeeming Rewards
You can redeem your rewards points to save on items at checkout on Amazon.com and Amazon Business (U.S.). You can also apply them as statement credits toward prior purchases. Either way, they’re worth one cent each at redemption.
Important Fees
There’s no annual fee or foreign transaction fee. Other fees may apply.
Credit Required
This card requires good or better credit to qualify. If your FICO score is much below 700, or your personal credit history is limited, then you’ll likely have trouble being approved.
Pros & Cons
This card has several key advantages and disadvantages to understand before you take the time to apply.
Generous, easy-to-earn sign-up bonus
Choose between up to 5% cash back or 90 days’ interest-free financing on eligible purchases
Earn unlimited 2% back in several spending categories
No recurring card fees
Annual spending cap on 3%/5% rewards tier
Few perks beyond the rewards program
Pros
The Amazon Business Prime Card has a generous, flexible rewards program without an annual fee.
$125 gift card upon approval. This is a relatively generous sign-up bonus for a no-annual-fee credit card, and it’s extremely easy to earn. There’s no early spend requirement.
Up to 5% cash back on eligible purchases. With an eligible Amazon Prime Business membership, you can earn 5% back on eligible spending with Amazon companies, including Amazon Business, AWS, Amazon.com and Whole Foods Market. Otherwise, you earn 3% — still a nice return.
Option for 90 days’ interest-free financing. If you prefer, you can receive 90-day terms on your purchases instead of 5% cash back.
Broad 2% cash-back categories. Outside the Amazon ecosystem, you can earn 2% rewards on purchases at restaurants, gas stations and wireless phone services purchased directly from service providers.
No recurring card fees. This card has no annual fee or foreign transaction fees, so it has no carrying costs and no penalties for international business travelers.
Cons
Unlike some popular business credit cards, the Amazon Business Prime Card is light on nonrewards perks and has a spending cap on its top rewards tier.
Spending cap on 5%/3% rewards tier. Your 5%/3% rewards earning potential is limited to $120,000 worth of purchases in a year, or $6,000 in rewards earned in this tier. Fortunately, you can take advantage of 90-day interest-free financing at any time.
Few value-added perks. This card has no real travel perks or travel insurance coverage, so it’s not ideal for users seeking truly generous benefits.
How the Amazon Business Prime Card Stacks Up
This card’s closest competitor may be the The Costco Anywhere Visa® Business Card by Citi. While Costco offers online sales, it doesn’t have nearly the selection that Amazon.com does. On the other hand, Costco has hundreds of warehouse stores around the country, a physical footprint that Amazon can’t match.
Amazon Business Prime
Costco Anywhere Business
Annual Fee
$0
$0 (with your paid Costco membership)
Sign-Up Bonus
$125 Amazon Gift Card
None
Rewards Rate
Up to 5%
Up to 4% on gas and EV charging
0% Intro APR
90 day terms on Amazon purchases, in lieu of 3%/5% rewards
None
Foreign Transaction Fee
None
None
Credit Needed
Good or better
Good or better
Final Word
The Amazon Business Prime Card is a great way for small business owners to earn rewards worth 5% on their purchases. By far, that’s the biggest strength this card has. It offers few other perks and benefits.
Still, if your business spends a lot with Amazon companies like Amazon.com, AWS, and Whole Foods, this card makes perfect sense. Especially with no annual fee.
Editorial Note:
The editorial content on this page is not provided by any bank, credit card issuer, airline, or hotel chain, and has not been reviewed, approved, or otherwise endorsed by any of these entities. Opinions expressed here are the author’s alone, not those of the bank, credit card issuer, airline, or hotel chain, and have not been reviewed, approved, or otherwise endorsed by any of these entities.
The Verdict
Our rating
Amazon Business Prime Card
This small business card is ideal for companies that spend heavily at Amazon.com, Amazon Web Services (AWS), Amazon Business and at Whole Foods Market. It offers your choice of up to 5% back or 90 days of interest free financing on those purchases, both of which are very hard to beat. It even offers a competitive 2% back on other common business services.
Just don’t expect all the perks and benefits of a premium small-business credit card. This is not a luxury product.
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Jason Steele is one of the nation’s leading experts in credit cards and travel rewards since 2008. Jason is also the founder and producer of CardCon, which is The Conference for Credit Card Media. Jason lives in Denver, Colorado where he enjoys bicycling, snowboarding and piloting small airplanes.
Open a BMO Harris Premier™ Account online and get a $500 cash bonus when you have a total of at least $7,500 in qualifying direct deposits within the first 90 days of account opening. Expires 9/15. Conditions Apply.
Even the most aggressive stock market investors keep some cash on the sidelines. That balance helps offset market volatility and cover end-of-year tax payments on capital gains. It’s there when you’re ready to put more money in the market too.
Many brokerages hold cash in basic, boring accounts that pay little or no interest and have no real features of their own. Others, like Fidelity, offer more appealing cash management accounts with much higher yields and checking-like features.
There’s no contest. True cash management accounts are better. And the Fidelity Cash Management account is among the best of the bunch. Even if you’re not a current Fidelity brokerage customer, it’s worth checking out. Just make sure you understand how it works — and its limitations — before you apply.
What Is the Fidelity Cash Management Account?
The Fidelity Cash Management account is an FDIC-insured cash management account with no maintenance fees and competitive interest rates on eligible balances.
You can open a Fidelity cash management account without an existing Fidelity brokerage account. Once open, you can keep the entire balance in cash or use a portion of it to purchase stocks, ETFs, or mutual funds. You don’t need to apply for a separate brokerage account.
Fidelity cash management account balances up to $5 million earn 2.60% APY. Interest is variable above that threshold. Other notable features include a secure debit card compatible with major digital wallets, global ATM fee reimbursement, mobile check deposit, and online bill payments.
Unlike a traditional bank account, funds deposited into the Fidelity cash management account may be distributed among a network of partner banks rather than held with Fidelity. This enables much higher FDIC insurance coverage because more than one FDIC-insured bank is involved. It also offers the possibility (though not the guarantee) of higher yields because each bank sets their own interest rates.
What Sets the Fidelity Cash Management Account Apart?
The Fidelity cash management account stands out for several reasons:
Comes with a Visa debit card that works worldwide. This account comes with a Visa debit card accepted by millions of merchants worldwide. As a payment method, it’s as good as any other Visa debit card or credit card.
No limits or geographical restrictions on ATM reimbursements. Fidelity reimburses ATM fees worldwide. There’s no monetary limit to this privilege either.
FDIC insurance many times the standard limit. Although the exact limit is subject to change based on how Fidelity allocates the funds in your cash management account, Fidelity advertises up to $5 million in FDIC coverage. That’s 20 times the standard limit of $250,000.
Impressive mobile features. This account holds its own against any mobile-friendly checking account. It has a full lineup of mobile features in an easy-to-use app.
Key Features of the Fidelity Cash Management Account
Before you open a Fidelity cash management account, take some time to understand its core features and capabilities.
Account Yield & Requirements
This account yields 2.60% APY on the first $5 million. Fidelity allocates this portion of your balance among its FDIC-insured partner banks, but for all practical purposes, it’s held with Fidelity.
Any portion of your balance above $5 million goes into a Fidelity money market fund, which holds a mix of government securities. The interest rate on this portion is variable but generally lower than the rate on the partner bank portion. Importantly, there’s no FDIC coverage on balances held in money market funds.
Account Fees & Minimums
This account has no monthly or annual maintenance fee. There’s no minimum or ongoing balance requirement either.
Secure Debit Card
This account comes with a secure Visa debit card accepted by millions of merchants worldwide. The card itself has no additional maintenance fee, though fees may apply for foreign transactions or overdrafts.
ATM Access
This account’s debit card works at tens of thousands of machines worldwide: any with the Visa, Plus, or Star logos. Fidelity charges no ATM fees of its own and reimburses any fees charged by third parties, like other banks or ATM owners.
Mobile Features
This account has a user-friendly mobile app and a responsive web interface that works well on small screens. It has a full feature lineup:
Mobile check deposit
Digital bill payments
Digital wallet integration
Real-time spending view
Fast internal and external funds transfers
Deposit Insurance
This account has FDIC insurance on balances up to $5 million. Balances above that amount are held in a money market fund that has no FDIC coverage and can lose value due to market volatility.
Access to Stocks & Other Asset Classes
True to its name, the Fidelity cash management account is first and foremost a cash account. You can use it as you would any other checking account.
But because it’s associated with a major investment company, it’s also easy to use some or all of the balance to fund your investing activities. You can buy stocks, ETFs, and mutual funds directly out of your cash management account balance. If you want to trade in riskier asset types, such as options contracts, you need to apply for those privileges separately.
Pros & Cons
The Fidelity cash management account has plenty of upsides and a few notable downsides too.
Visa debit card accepted worldwide
No limits on ATM fee reimbursements
Lots of checking-like features
Very high FDIC insurance limits
Brokerage account link could be too much temptation
Yield isn’t competitive with the best savings accounts
Some traditional checking features missing
Pros
The Fidelity cash management account is a well-rounded cash account with enough firepower for higher-asset users.
Visa debit card accepted worldwide. This account comes with a Visa debit card that’s accepted by millions of merchants worldwide. Functionally, it’s as good as any checking account debit card.
No limit on ATM fee reimbursements. Fidelity is unusually generous when it comes to ATM fee reimbursements. No matter how many withdrawals you make, Fidelity covers the associated fees.
Lots of checking-like features. This account isn’t quite as good as a checking account, but it’s pretty close, and you might not need a checking account if your financial life is otherwise simple.
Very high FDIC insurance limit. Your Fidelity cash management account balance has FDIC insurance up to $5 million, many times the standard limit and high enough not to be an issue for the vast majority of users.
Integrates seamlessly with Fidelity brokerage account. Your Fidelity cash management account integrates seamlessly with your Fidelity brokerage account. That is, if you want it to. It functions perfectly fine as a standalone cash-only account too.
Cons
The Fidelity cash management account is stingier than some other cash management accounts and could tempt less sophisticated users with potentially risky investments.
Yield can’t match top cash management or savings accounts. Though variable, the Fidelity cash management account’s yield tends lower than the leading high-yield savings accounts and interest checking accounts. If your top priority is to maximize your return on cash balances, this isn’t the best account for you.
Direct access to stocks and ETFs could threaten users’ emergency savings. Traditional checking and savings accounts aren’t linked to online brokerage accounts, which means they don’t carry the temptation to invest FDIC-insured emergency savings (or any other cash balances) in stocks and ETFs that can lose value.
Some missing checking features. This account has important checking features like online billpay and mobile check deposit, but it’s not quite a full-service checking account.
How the Fidelity Cash Management Account Stacks Up
The Fidelity cash management account shares the spotlight with several other high-yield accounts tied to brokerage platforms. One of its top competitors is the Wealthfront Cash Account. Before applying for either, compare them head to head.
Fidelity Cash Management
Wealthfront Cash
Maintenance Fee
$0
$0
Yield
2.60% APY
4.55% APY
ATM Reimbursements
Yes, unlimited
No
FDIC Insurance
Up to $5 million
Up to $5 million
The Fidelity cash management account is clearly better for folks planning to use it more like a checking account, thanks in particular to unlimited ATM fee reimbursements. But Wealthfront has a significantly higher yield, which is a key consideration for many investors.
Final Word
The Fidelity Cash Management account is a checking-like deposit account with a much higher yield than most checking accounts and direct access to a low-cost digital brokerage. It has sky-high FDIC insurance limits and unlimited ATM fee reimbursements too, making it appropriate for high rollers.
It’s not perfect though. Its yield is lower than many competing cash management accounts, not to mention high-yield savings accounts, and it’s not quite a full-service checking account. Before you apply, make sure it’s the best choice for your cash management needs.
Editorial Note:
The editorial content on this page is not provided by any bank, credit card issuer, airline, or hotel chain, and has not been reviewed, approved, or otherwise endorsed by any of these entities. Opinions expressed here are the author’s alone, not those of the bank, credit card issuer, airline, or hotel chain, and have not been reviewed, approved, or otherwise endorsed by any of these entities.
The Verdict
Our rating
Fidelity Cash Management Account
With a strong-but-not-industry-leading yield and very high FDIC insurance coverage, the Fidelity Cash Management account is an ideal place to park money you don’t need right away. It also has enough checking-like features to potentially replace your existing bank account. But it’s not the best option if all you care about is earning the most interest possible.
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Brian Martucci writes about credit cards, banking, insurance, travel, and more. When he’s not investigating time- and money-saving strategies for Money Crashers readers, you can find him exploring his favorite trails or sampling a new cuisine. Reach him on Twitter @Brian_Martucci.
Elan Financial is now offering a Visa Infinite Reserve Rewards+ Card. Card comes with a 50,000 point bonus after $4,500 in spend within the first 90 days
Card Details
$390 annual fee
$100 travel credit
Up to $240 in credits for eligible sports & fitness, personal care, entertainment & streaming services, and dining
Card earns at the following rates:
6X points on travel booked through the Rewards Center
2X points on all other eligible purchases
Priority Pass membership
TSA/Global entry credit
Our Verdict
Similar to the Max Cash Preferred card that is also offered by Elan to various banks. Card isn’t worth getting due to the annual fee.
Editor’s note: This post has been updated with new information and offers.
Capital One Venture X Rewards Credit Card overview
The Capital One Venture X Rewards Credit Card (see rates and fees) is the issuer’s first foray into the world of premium travel rewards cards and knocks it out of the park. With an annual fee that undercuts the competition and plentiful perks that are easy to understand, the card is nearly a no-brainer for travelers ranging from luxury seekers to the more budget-minded. Chase and Amex, take notice. Card rating*: ⭐⭐⭐⭐½
* Card rating is based on the opinion of TPG’s editors and is not influenced by the card issuer.
Over the last couple of years, premium cards like The Platinum Card® from American Express and Chase Sapphire Reserve have taken center stage with major updates, including adding new perks and statement credits — along with increased annual fees.
However, the Capital One Venture X stole the limelight when it launched in November 2021 with some incredibly valuable perks. Plus, with an annual fee of just $395, the Venture X is more affordable than its main competitors. The card also offers up to $300 in annual statement credits toward bookings made through Capital One Travel, which makes up for the majority of its annual fee.
If you’re considering the Venture X, here is everything you need to know before clicking that “apply” button.
Official application link: Capital One Venture X with 75,000 bonus miles after you spend $4,000 on purchases in the first three months from account opening.
Capital One Venture X welcome offer
The Venture X card’s sign-up bonus is 75,000 bonus miles after you spend $4,000 on purchases in the first three months from account opening.
According to TPG’s latest valuations, 75,000 Capital One miles are worth $1,388, thanks to the outsized value you can get from transferring Capital One miles to the program’s airline and hotel partners.
Even if you don’t want to navigate the complexities of transferable points, you can still use your Capital One miles directly for travel at a rate of 1 cent per mile — making the sign-up bonus worth $750.
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Related: How (and why) you should earn transferable points
Earning miles with the Capital One Venture X
The Venture X accrues miles at the following rates:
10 miles per dollar on hotels and car rentals booked via Capital One Travel.
5 miles per dollar on flights booked via Capital One Travel.
2 miles per dollar on other purchases.
This simplicity builds off the $95-per-year Capital One Venture Rewards Credit Card (see rates and fees), a product that has been around for over a decade. In that way, the Venture X represents the best of both worlds — high earning potential on travel purchases, specifically, but a solid everyday earning rate that’s easy to keep track of.
Read more: Credit card showdown: Capital One Venture vs. Capital One Venture X
Redeeming miles with the Capital One Venture X
Capital One miles can be redeemed in several ways, but transferring miles to travel partners probably represents the most lucrative opportunity.
Transfer miles
Over the years, Capital One has made significant improvements to its mileage program, including shifting from solely fixed-rate redemptions to adding a host of airline and hotel transfer partners, most of which now convert at a 1:1 ratio.
Here is the full list of transfer partners and their respective transfer ratios from Capital One:
Transfer partner
Transfer ratio
Aeromexico Club Premier
1:1
Air Canada Aeroplan
1:1
Air France-KLM Flying Blue
1:1
Avianca LifeMiles
1:1
Accor Live Limitless
2:1
British Airways Avios
1:1
Cathay Pacific Asia Miles
1:1
Choice Privileges Hotels
1:1
Emirates Skywards
1:1
Etihad Guest
1:1
EVA Infinity MileageLands
2:1.5
Finnair Plus
1:1
Qantas Frequent Flyer
1:1
Singapore KrisFlyer
1:1
TAP Air Portugal Miles&Go
1:1
Turkish Airlines Miles&Smiles
1:1
Virgin (Atlantic) Red
1:1
Wyndham Rewards
1:1
Leveraging transfer partners offers several sweet-spot redemption opportunities, including economy flights to Hawaii for just 7,500 Capital One miles by transferring to Turkish Miles & Smiles and redeeming for United flights, and business-class flights to South America for 50,000 Capital One miles transferred to TAP and redeemed on United.
Fixed-value redemptions
Capital One offers several fixed-value redemption options if you consider simplicity more important than cent-per-point value:
Book travel: You can book travel directly through Capital One Travel at a value of 1 cent per mile.
Pay off travel purchases: You can pay off travel purchases made in the past 90 days on your card statement without worrying about the complexities of loyalty programs. You’ll again get a flat value of 1 cent per mile.
Redeem for gift cards: You can use miles for gift cards at the same rate of 1 cent per mile.
Redeem for cash back: You should do everything possible to avoid this option, as it will only provide a redemption value of 0.5 cents per mile.
You should never use the last option here since it slashes the value you get compared to travel redemptions.
Capital One Venture X benefits
While a $395 annual fee might initially seem like a deterrent, it’s easy to see how the Venture X’s perks can offset the yearly cost with minimal effort:
Statement credit: Up to $300 back in statement credit annually for bookings made through Capital One Travel.
Anniversary bonus: 10,000 bonus miles every account anniversary, starting on your first anniversary (worth $100 toward travel).
Lounge access: Complimentary access for cardholders, authorized users and up to two guests per visit to Capital One Lounges .
Authorized users: Up to four authorized users can be added at no charge, and they also get the same guest access as the cardholder for the Capital One Lounge and Priority Pass.
Access to luxury hotels: The Capital One Premier Collection offers cardholders free breakfast, on-property credits and room upgrades (if available).
Rental car status: The primary cardholder and authorized users receive complimentary Hertz President’s Circle status**.
Global Entry or TSA PreCheck: Up to $100 in statement credits for either TSA PreCheck or Global Entry.
Trip delay reimbursement: Up to $500 per person for reasonable expenses
Cellphone protection: By using the card to pay your monthly wireless bill, you’re eligible for up to $800 in coverage per claim. A $50 deductible applies per occurrence.
Primary rental car insurance: for damage caused by collision or theft to a rental car.*
Purchase, extended warranty and return protection: warranties extended by an additional year; returns up to $300 per item and $1,000 per account.*
* Benefits available on Visa Infinite cards. **Upon enrollment, accessible through the Capital One website or mobile app, eligible cardholders will remain at upgraded status level through December 31, 2024. Please note, enrolling through the normal Hertz Gold Plus Rewards enrollment process (e.g. at Hertz.com) will not automatically detect a cardholder as being eligible for the program and cardholders will not be automatically upgraded to the applicable status tier. Additional terms apply.
Which cards compete with the Capital One Venture X?
With a $395 annual fee, the Venture X falls within the premium travel cards category. Two main competitors come to mind; however, both of these cards come with significantly higher annual fees — $550 for the Chase Sapphire Reserve and $695 for the Amex Platinum (see rates and fees).
If you want loads of benefits: The Amex Platinum has a complicated assortment of benefits and perks, including at least 10 different built-in statement credits allotted in time frames ranging from monthly to every four years, making them difficult to keep track of. While you can offset the card’s hefty $695 annual fee with these included credits, it is a lot to manage — not to mention some of these perks might not be useful for certain card members. For more information, read our full review of the Amex Platinum.
If you want more travel and dining rewards: The Chase Sapphire Reserve cardholders earn bonus points at similar rates to the Venture X when booking through the Ultimate Rewards travel portal, with 10 points per dollar on hotel and car rental purchases and 5 points per dollar on airfare. However, they also earn 3 points per dollar on other travel and dining, which beats the Venture X. The annual $300 travel credit on the Sapphire Reserve is easier to use. For more information, read our full review of the Sapphire Reserve.
For additional options, check out our list of the best premium travel cards.
Read more: The best premium credit cards: A side-by-side comparison
Bottom line
With simple rewards and overall solid value, the Venture X has mass appeal, especially for those searching for (or switching from) a premium travel rewards card. In addition, there are a lot of under-the-radar perks on the card, including Visa Infinite benefits with an extensive list of trip, luggage, car rental and purchase protections.
Add in a growing network of airport lounges, no-fee authorized users, Capital One’s robust transfer partners and a luxury hotel program, and you have a card that is nearly a no-brainer.
Official application link: Capital One Venture X with 75,000 bonus miles after you spend $4,000 on purchases in the first three months from account opening.
For rates and fees of the Amex Platinum Card, click here.
For Capital One products listed on this page, some of the above benefits are provided by Visa® or Mastercard® and may vary by product. See the respective Guide to Benefits for details, as terms and exclusions apply.
Additional reporting by Ryan Wilcox, Eric Rosen and Christina Ly.
Whether you are a freelancer, side hustler, or run a full-time business, opening a separate business bank account should be your first move after starting your business.
A business bank account helps you keep your business finances and personal income and expenses separate. Having a business bank account for all your business finances makes it easy to run records and track your costs and deductions at tax time.
Business checking accounts can also help business owners establish credit, which they can use for net terms with suppliers or to take out business loans or business credit cards.
But which business checking account is best? And can you find good options with free business checking accounts?
12 Best Free Business Checking Accounts
We’ve done the legwork for you, compiling a list of the 12 best free business checking accounts available in the U.S. today.
1. Bluevine: Best Free Business Checking Account Overall
Bluevine offers one of the most comprehensive and best free business checking accounts you’ll find. It has no monthly maintenance fees, no overdraft fees, and an annual percentage yield APY of 2% on up to $250,000 of your balance if you meet monthly activity goals. To qualify, simply make $500 in debit card purchases with your Bluevine business debit or receive $2,500 per month in customer payments to your account.
Bluevine offers features that make it great for a team, including the ability to open multiple sub-accounts and even have separate logins for employees or contractors, like accountants and virtual assistants.
While some free business checking accounts have transaction limits, your Bluevine business checking account does not. Funds are backed by Coastal Community Bank, Member FDIC. Coastal Community Bank provides business banking services for Bluevine customers.
2. Capital One Business Bank Account: Best for Local Branches
If you’re looking for personalized service at local branches, consider Capital One business checking. Capital One offers two tiers of checking accounts: Basic and Enhanced. Both accounts offer unlimited digital transactions, free overdraft coverage, access to Capital One’s mobile app, no ATM fees at 70,000 Capital One, Allpoint, and MoneyPass ATMs, and low monthly fees that are easily waived when you meet minimum balance requirements.
Capital One Enhanced business checking is designed for larger businesses who can meet $25,000 average daily balance requirements needed to waive the $35 monthly service fee. Enjoy free incoming wire transfers, five free outgoing wire transfers monthly, and a remote scanner for mobile check deposits.
3. GO2bank: Best for Online Banking
GO2bank is a complete mobile banking solution with digital banking services provided by Green Dot Bank. The bank offers many features in its online business checking account that will appeal to business owners and their employees, including co-branded debit cards, optional overdraft protection, and a co-branded app for businesses. You can also get a secured business credit card through GO2bank.
Waive the monthly fees with qualifying direct deposits, and receive ACH payments up to two days early. You can also purchase eGift cards for yourself or as employee incentives and earn up to 7% cash back.
4. Found: Best for Freelancers
Hailed as the debit card for the self-employed, we rate Found as the best free business account for freelancers. It has no monthly maintenance fees, no minimum deposit or minimum balance requirements, and no credit check to open your account.
Found has a few features that can help you streamline your business. By evaluating your income and expenses, Found can calculate your tax bill, categorize tax write-offs, and even auto-save the correct amount from each deposit to cover your quarterly taxes. You can also send invoices from the app.
Found is a financial technology company, not a bank. Deposits are FDIC insured through Piermont Bank.
5. First Citizens Bank Basic Business Checking: Best for Checking Account Choices:
Most business checking accounts have one option for a business owner. First Citizens has four choices to help you choose the right business checking account with the features you need. The basic business checking account offers 100 transactions with no monthly fee, and has a minimum opening deposit of $100.
Business Banking I is free with a merchant account or a minimum daily balance of $25,000. It offers processing of up to $250 transactions per month, plus $10,000 in cash processing, including cash deposits. Business Banking II has similar features with 500 free transactions and $15,000 in cash processing, including cash deposits. There is a $50 monthly fee unless you have a merchant account or an average daily ledger balance of $50,000.
Business Banking III is best for larger enterprises who want choices and do a high volume of business. Process up to 750 transactions free each month, with $20,000 in cash deposits. You’ll need a merchant account or $75,000 in your average daily ledger balance to avoid the monthly maintenance fee.
Business Banking I, II, and III accounts also let you customize your plan with additional discounted services.
6. Novo Business Checking Account: Best for E-commerce and App Integrations
Novo is not a bank, it’s a financial technology company with deposits backed by Middlesex Federal Savings, Member FDIC. Novo is one of the most tech-forward financial institutions on our list, offering easy integration with apps like Shopify, Wise, Stripe, Square, and Quickbooks.
The Novo Business Checking account has no monthly fees, no minimum balance requirements, no cash deposit fees, and ATM fee reimbursement for out-of-network ATM use. Account holders can also get discounts on popular business software and services, including LegalZoom, Constant Contact, and Stripe.
7. Mercury Banking For Start-ups: Best for Start-ups
Bootstrapped and venture-backed startups of every size have unique needs in a business checking account. A Mercury free business checking account helps your money stretch further with no monthly fee, no minimum balance requirements, and no minimum deposit to open. You can earn 5.11% annual percentage yield APY with mutual funds invested through Mercury Treasury if you have an account balance of $250,000 or more.
Mercury free business checking offers unlimited free transactions, including no cash deposit fees, for businesses who process less than $200,000 per month. The account offers team management tools, debit cards for multiple employees, and capabilities to open multiple checking and savings accounts to manage cash flow.
Plus, your Mercury account is backed by up to $5 million worth of FDIC insurance through partner banks. Banking services are provided by Choice Financial Group and Evolve Bank & Trust, Members FDIC and deposits are held in various partner banks.
8. U.S. Bank Silver Business Checking: Best for Sign-up Bonus
If you’re looking to earn free cash to boost your business, consider a U.S. Bank Silver Business checking account with a $100 minimum deposit before June 30, 2023. You can earn a $500 bonus when you make new deposits of at least $5,000 and maintain a minimum balance of at least $5,000 until 60 days after the account opening. Increase that to $15,000 in new money deposits and maintain that balance for 60 days and earn $750 deposited into your new business checking account.
U.S. Bank offers tons of benefits for business owners, including no transaction fees for up to 125 transactions each month, 25 free cash transactions (or up to $2,500 in free cash deposits, whichever comes first), no monthly maintenance fee, and 50% off on your first check order, up to $50.
Larger businesses may prefer a Gold Business Checking Account, with no transaction fees for up to 300 transactions per month. It also has a waivable $20 monthly fee.
There is also a Platinum Checking Account Package with 500 free transactions and a $30 monthly fee. This fee is waived by meeting monthly minimum balance requirements.
9. Chase Business Complete Banking: Best for Payment Processing
For those who want to avoid online only banks and are looking for a big bank with international recognition and branches and ATMs across the U.S., Chase Business Complete Banking offers a solid solution. It comes with many ways to waive the monthly service fee.
Chase also makes it easy to accept credit and debit card payments without using a third-party payment processor. Chase QuickAccept is a built-in feature as part of Chase Business Complete Banking. You don’t need to apply for a separate merchant account, and the transaction fees are competitive with other credit card processing companies.
QuickAccept also allows you to access money faster with same-day deposits with no added fees. If you need a merchant payment processing provider that works in synch with your bank account, Chase Business Complete Banking could be the best choice for you.
Right now through August 3, 2023, businesses can earn a bonus up to $500 when they open a Chase Business Complete Checking account and meet requirements, which including total deposits of $15,000 or more. Deposit just $2,000 or more and snag an easy $300 for your new business checking account.
10. Huntington Business Checking 100 (Midwest): Best for Community Banking
Huntington National Bank, headquartered in Columbus, Ohio, since 1866, offers three business checking accounts, including a business interest checking account, Unlimited Plus Business Checking.
The top-tier account includes unlimited transactions, plus cash deposits of up to $25,000. Waive the $40 monthly fee with up to $50,000 in total deposit relationship balances across business accounts. Designed for larger businesses, the Unlimited Plus Business Checking allows you to choose two bonus services such as a fraud tool, waived returned deposited items fees on up to 25 items per month, or two free incoming domestic wires monthly.
The Unlimited Business Checking account offers similar features, with unlimited transactions, free cash deposits on up to $10,000 per month, and a choice of one bonus service. Waive the $20 monthly fee by maintaining a minimum balance of at least $10,000. A Business Checking 100 account offers up to 100 transactions per month, and up to $5,000 in cash transactions with no monthly fee.
Huntington is devoted to the local communities it serves and spotlights small business owners on its website. It also specializes in SBA loans and offers a linked business money market account to earn interest on savings with no monthly maintenance fee if you maintain an average daily balance of $10,000+.
11. Relay Business Checking: Best for Money Management
Relay online banking offers up to 20 primary business checking accounts for members of your team or for different business expenses, plus 50 virtual or physical Visa debit cards. Designed to assist with cash flow and money management, your Relay online banking account allows automated transfers into the various checking accounts based on percentage of income or flat-rate dollar figures.
Your Relay online and mobile banking account also includes up to two business savings accounts with APYs of 1% to 3%. Best of all, unlike many free business checking accounts that are only free if you meet transaction or balance requirements, Relay has no monthly maintenance fee, no transaction fees, no overdraft fees, no ATM fees, and no minimum balance requirements.
12. Axos Basic Business Checking Account: Best for No Fees
Axos Bank has been voted best online bank by Money Magazine and its business offering stands out for small business owners as a straightforward business checking account with no transaction fees, no monthly maintenance fee, and no minimum opening deposit. You also don’t have to worry about balance requirements or ATM fees. You’ll even receive unlimited reimbursements for using out-of-network ATMs within the U.S.
You will need to maintain a minimum balance of at least $5,000 for the first five statement cycles to earn a $100 account opening bonus. You will receive $25 into your business account each month you maintain the minimum requirements. However, if you close the account within 120 days, you might have to pay a $100 early closure fee.
What to Consider When Choosing the Best Free Business Checking Account
The best free business checking account for your business depends on the volume of cash deposits, number of transactions, the size of your company and your general banking needs.
It’s important for a business of any size, including a sole proprietor or 1099 contractor, to open a business checking account to keep business funds separate from your personal checking account and other personal finances. This is especially important at tax time.
Many of the business bank accounts on our list of best free business checking accounts make it easy for you to track your business finances. They offer end-of-month or quarterly reports or integrate with QuickBooks or other accounting software to make money management easy. This, along with costs, quality of customer service, mobile apps, and more should factor into your decision when you choose a small business checking account.
Monthly Maintenance Fee
Account fees have long been a fact of life for individuals and business owners, but they no longer have to be with so many free checking accounts available today. Some of the banks on this list, including Axos and Relay, offer no monthly fee of any kind. Others make it easy to waive the monthly fee by meeting balance requirements.
See if there are any balance requirements, direct deposit requirements, or minimum debit card purchases to avoid the monthly service fee, and if you will be able to meet those minimums easily each month.
Easy-to-use Online and Mobile Banking
Even basic business checking today should have a robust app and mobile banking solutions, including mobile check deposits, capability to turn your debit cards on or off, and to monitor spending in a user-friendly app.
You may think online-only banks have better mobile capabilities, but that’s not always the case. All the best business checking accounts on our list have intuitive, user-friendly mobile apps.
Low Minimum Opening Deposit Requirements
Most of the free checking accounts on our list have low minimum opening deposit requirements. Some may have higher minimums to earn a bonus on your business checking account. Make sure to read the fine print and know the minimum deposit requirements if you want to earn that sign-up bonus.
Reasonable Fees
While it’s possible to find a business checking account with no monthly service fee, your bank may have some fees. Read the fine print so you know exactly what you’re getting for your money. It should be easy to avoid ATM fees, overdraft fees, and even monthly fees.
However, you may have to pay for wire transfers, out-of-network ATMs, and other transactions. Unlike personal accounts, it’s common for business bank accounts to have fees if you deposit cash. Sometimes, a certain number of cash transactions is included in your monthly fee.
Customer Service
It’s important to research the bank’s customer service before you commit to a business checking account. Online only banks, especially, may have limited ways to reach customer support. Find out if they offer 24/7 service. Many people prefer online banking for the convenience and low account fees. But if you experience a problem, you want to make sure you can get help promptly.
Positive Customer Reviews
When you’re looking for the best business checking account, it pays to research the opinions of other business owners like you. Customer reviews can give you a feel for the level of customer service, ATM fees, monthly fees, fraud protection, and more.
Practical Transaction and Cash Deposit Limits
Many of the best business checking accounts offer unlimited transactions and reasonable monthly limits to deposit cash. Many banks offer different tiers of business checking accounts, so you can pay a set monthly fee for the level of service you need.
Linked Business Savings Account or Business Interest Checking Account
If you want to earn interest on your cash reserves, look for a checking account that pays interest or for a bank with a high interest savings account. Pay attention to account fees, withdrawal limits, and
Consider the Need for a Bank With Physical Locations
Online banking offers lower monthly fees and convenience. But if your business needs to deposit cash regularly or you just want personalized service and relationship banking, you might prefer a bank account at a financial institution with brick-and-mortar locations.
Questions to Ask Before Deciding on a Business Checking Account
When you’re shopping around for a free business checking account, consider your needs, the number of transactions you conduct daily, your account balance, and whether you prefer a traditional bank or are willing to consider online only banks for your business checking needs. Ask yourself the following questions so you can compare your options.
Will you be making regular cash deposits?
Many business checking accounts charge a fee if you want to deposit cash. Sometimes, a number of cash deposits will be included in your monthly fee. Make sure to pick an account with the capabilities you need.
Do you prefer a bank or credit union?
You might prefer the personalized service of a credit union instead of choosing a large bank or an online bank. When you’re evaluating credit unions, compare all the features and fees the same as you would evaluate business bank accounts.
Do you need to process customer transactions?
Banks like Chase offer credit card processing as an add-on feature to their services. If you are using an online bank, you might want one that integrates with Stripe, Square, or other payment processors. The capability to process customer transactions is one element that sets a business bank apart from a personal checking account.
Do you want to earn interest on your balance?
Several banks on our list offer high yield savings accounts, which is a benefit for small businesses, start-ups, and any business that wants to earn free money from their balance. You might also consider an interest earning business checking account like Bluevine, which pays interest on your checking account balance.
Business Checking vs. Money Market Account
A money market account is a special savings account designed to hold money that you may need to access in the short term. Some money market accounts offer higher APYs than other savings accounts. A money market account often has limits on the number of fee-free withdrawals per month.
Most business owners will want to open a free business checking account and link it to a money market account to earn interest on cash reserves.
What You Need to Open a Small Business Checking Account
You may not need an Employer Identification Number or Tax ID number to open a business checking account. If you have one, you should open the account using that number instead of your Social Security number to help keep your business and personal funds separate.
But if you are a freelancer and file taxes as a sole proprietor/self-employed, you can open your business checking account with your SSN. However, if your business has a DBA (doing business as) you will need a certificate or paperwork showing that name.
Likewise, if you are an LLC, you’ll need your business registration along with your EIN. If you have a partnership, you’ll need your partnership agreement and paperwork showing the business name.
Beyond that, you can open a business checking account with your business address, a phone number, email address and the minimum deposit (if required). Visit a branch for personalized service or open your free business checking account online.
FAQs
See what people are asking about free business checking accounts.
Do you need to pay account or transaction fees?
Some business checking accounts have monthly fees that you can waive by meeting specific requirements. You may also pay ATM fees, fees for cash deposits, and fees for wire transfers or international transactions.
Read the fine print or speak to a personal banker to choose the account that’s right for you.
Can you open a business checking account with no credit check?
Most banks and credit unions will allow you to open a business checking account with no credit check. By maintaining a positive balance in your account, you can build your business credit. A credit check may be required for business loans, lines of credit, or “net” terms with vendors.
What are the most important features of business checking accounts?
Most business owners are looking for business checking with no ATM fees and no monthly fee or easy ways to waive the monthly fee. Beyond that, consider the type and number of transactions you complete monthly, whether you need payment processing capabilities, and if you want a linked savings account to earn interest.
What banks offer free business checking accounts?
Many online and traditional banks offer free business checking or easy ways to waive the monthly fee. The list above describes 12 of our favorite options in free business checking.
New Mexico’s rich, fascinating history makes it popular with both visitors and new residents. Whether you work for the federal government or one of the state’s many small businesses, banking services are an essential part of life. That’s why we’ve pulled together a list of the best banks in New Mexico to help you find the right bank to fit your needs.
10 Best Banks in New Mexico
From online and mobile banking to traditional banks with branches across the country, there’s a bit of everything in New Mexico. It’s important to take a look at the closest bank branch to your house, but you should also pay attention to which banks charge monthly maintenance fees to make sure you’re getting the best deal. The below list can help you kick off your search for the best bank.
1. U.S. Bank
With its vast array of branches and ATMs, U.S. Bank is a major player in the banking sector of the state.
Of particular interest to residents of New Mexico is the Bank Smartly® Checking account. This account provides the opportunity to gain up to $300, provided certain criteria are met. Specifically, within a span of 90 days from creating your new Bank Smartly® Checking account online, you are required to:
Successfully process two or more direct deposits that cumulatively total $6,000 or more
Sign up for either online banking or the U.S. Bank Mobile App
This promotional offer, valid until July 11, 2023, comes with particular terms and conditions. U.S. Bank is an FDIC member.
In addition to these enticing offers, U.S. Bank provides a broad spectrum of financial services, which include checking and savings accounts, loans, investments, and more. These services can be easily accessed through their user-friendly online and mobile banking platforms.
Fees:
$6.95 monthly service fee (waived with direct deposits or balance minimums)
No-fee overdraft protection transfers from a linked deposit account
Balance requirements:
$25 opening deposit
$1,500 minimum daily balance or $1,000 in direct deposits to waive service fee
ATMs:
Fee-free at U.S. Bank, MoneyPass, and Cardtronics locations nationwide
$2.50 charge per transaction at out-of-network ATMs
Interest on balance:
Up to 4.50% APY on money market accounts
Up to 4.75% APY on CDs
Additional perks:
Extensive mobile banking features
Money management tools available
2. New Mexico Bank & Trust
New Mexico Bank & Trust is a traditional bank with locations across New Mexico. This free checking account has no minimum balance, but if you frequently access cash, you’ll want to consider upgrading to a New Mexico Bank & Trust higher-tier account.
With direct deposit, both the Platinum and Signature Series checking accounts refund up to $20 in non-New Mexico Bank & Trust ATM fees each month. Currently, you can earn a $300 bonus on a new free checking account as long as you receive at least two monthly $300 direct deposits.
Fees:
No monthly service fees
$35 overdraft fee
Balance requirements:
$25 minimum deposit to open
No minimum daily balance requirements
ATMs:
Fee-free at New Mexico Bank & Trust ATMs
No out-of-network ATM fees
Interest on balance:
Up to 1.25% APY on savings account
Up to 4.75% APY on CDs
0.10% APY on money market savings account
Additional perks:
Up to $600 bonus with new checking account
New Mexico Bank & Trust cash-back rewards credit card comes with no annual fee
3. Chime
If online banking is how you get banking services, Chime is worth considering. The basic checking account is fee-free and includes all the features you need. Although Chime doesn’t feature the in-person service you get with brick-and-mortar banks, you can withdraw cash for free at more than 60,000 ATMs nationwide.
Fees:
No monthly maintenance fees
$15 overdraft fee
Balance requirements:
No minimum deposit to open
No minimum daily balance required
ATMs:
Fee-free at 60,000 ATMs nationwide
$2.50 for each out-of-network ATM transaction
Interest on balance:
2.00% APY on savings accounts
Additional perks:
Secured credit card helps you build credit with no credit check required
SpotMe covers up to $200 in overdrafts
4. Bank of Albuquerque
If you live in Albuquerque, the Bank of Albuquerque has bank branches throughout the area. You’ll find a fee-free checking account with nationwide access to cash at more than 32,000 locations in the MoneyPass ATM network.
One standout feature of this traditional bank is its youth account. Designed for those under the age of 18, this account features a Visa debit card, online and mobile banking tools (for ages 13+ only), and a savings account that pays 0.25% APY.
Fees:
No monthly maintenance fees
$34.50 overdraft fee
Balance requirements:
$50 minimum deposit to open
No minimum balance requirements
ATMs:
Fee-free at Bank of Albuquerque ATMs
Fee-free at 32,000+ MoneyPass locations nationwide
$2 fee for each out-of-network ATM transaction
Interest on balance:
Up to 0.20% APY on savings account
Up to 4.85% APY on CDs
Up to 1.50% APY on money market accounts
Additional perks:
Same-day credit for deposits at any Bank of Albuquerque ATM
Wealth management services available
5. GO2bank
Another online bank available to New Mexico residents is GO2bank. For those who regularly deal with cash, GO2bank is a great option. You can not only withdraw money at any Allpoint ATM, but you can deposit cash at more than 90,000 retailers nationwide. GO2bank will waive monthly fees on your checking account as long as you set up a qualifying direct deposit.
Fees:
$5 monthly fee (waived with requirements)
$15 overdraft fee
Balance requirements:
No minimum deposit to open
No minimum balance required
ATMs:
Fee-free at Allpoint ATMs nationwide
$3 fee for each out-of-network ATM withdrawal
Interest on balance:
4.50% APY on savings accounts
Additional perks:
Deposit cash at 90,000+ partner retailers nationwide
Up to 7% cash back on gift card purchases
6. WaFd
If you’re looking for the expanded services of a national bank with the personal touch of a local bank, Washington Federal Bank is worth considering. With bank branches across New Mexico, WaFd Bank makes an effort to connect with each community it serves. But if you’re in the market for a new CD, WaFd is currently offering up to 5.00% APY on 3-month CDs and up to 4.45% APY on 7-month CDs.
Fees:
No monthly service charges
$30 overdraft fee
Balance requirements:
$25 minimum opening deposit
No minimum balance required
ATMs:
Fee-free at WaFd Bank ATMs
Fee-free at 40,000+ MoneyPass ATMs nationwide
Interest on balance:
0.10% APY on savings accounts
Up to 5.00% APY on CDs
Up to 2.00% APY on money market accounts
Additional perks:
Three debit card style options available
Budgeting tools available in mobile banking app
7. Wells Fargo
With bank branches in 33 states and the District of Columbia, Wells Fargo is a national bank with plenty to offer. Currently, you can open a free checking account as long as you maintain a $500 daily balance, receive at least $500 in direct deposits each month, are 17-24 years old, or have a Wells Fargo campus ATM card linked to your checking account.
New checking customers can earn $300 by receiving at least $1,000 in qualifying deposits in the first 90 days.
Fees:
$10 monthly fee (waived with requirements)
$35 overdraft fee
Balance requirements:
$25 minimum opening deposit
No minimum balance required
ATMs:
Fee-free at Wells Fargo ATMs nationwide
$2.50 out-of-network ATM fee
Interest on balance:
Up to 2.51% APY on savings accounts
Up to 4.51% APY on CDs
Additional perks:
$300 bonus on new checking accounts
Robust mobile banking services
8. Century Bank
If you prefer banks in New Mexico with a long history in the state, consider Century Bank. The bank has served New Mexico since 1887. Century Bank has a wealth of financial products, including personal loans, business accounts, and retirement savings options. Currently, Century Bank is offering higher-than average rates on CDs, including 7-month CDs that earn interest at a rate of 5.00% APY.
Fees:
No monthly fees
Balance requirements:
$25 opening deposit
No minimum balance required
ATMs:
Fee-free at Century Bank ATMs
Fee-free at MoneyPass ATMs nationwide
$2 fee for each out-of-network ATM withdrawal
Interest on balance:
Up to 0.03% APY on savings accounts
Up to 5.00% APY on CDs
Up to 3.50% APY on money market accounts
Additional perks:
Multiple account options for small businesses
Great rates on personal and auto loans
9. Bank of America
One of the best traditional banks is Bank of America, which has branches throughout New Mexico. What sets Bank of America apart from other banks is its top-rated mobile banking options. You’ll get features like budgeting tools, debit card lock/unlock, and custom alerts. Frequent travelers appreciate Bank of America’s nationwide network of branches and ATMs.
Fees:
$12 monthly service fee (waived with requirements)
$10 overdraft fee
Balance requirements:
$100 minimum opening deposit
No minimum balance required
ATMs:
Fee-free at 15,000+ Bank of America ATMs nationwide
$5 out-of-network ATM fee
Interest on balance:
Up to 0.04% APY on savings accounts
Up to 4.75% APY on CDs
Additional perks:
Generous credit card bonuses and rewards
Wealth management services available
10. Nusenda Credit Union
Credit unions offer benefits like low interest rates on loans and high interest rates on savings accounts. With Nusenda Credit Union, you can not only get service at a bank branch bearing the credit union’s name, but at credit unions across the country that are part of the Co-Op Network. This network also includes more than 30,000 ATMs nationwide.
Fees:
$5 monthly service fee (waived with requirements)
$29 overdraft fee
ATMs:
Fee-free at Nusenda Credit Union ATMs
Fee-free at 30,000+ Co-Op ATMs nationwide
Interest on balance:
Up to 4.50% APY on CDs
Additional perks:
More flexible membership requirements than other credit unions
Competitive rates on loans
How We Picked: Methodology
It can be tough to choose the best bank in New Mexico since needs vary from one person to the next. That’s why we made every attempt to choose a variety of banks, from online banking providers to local banks and credit unions.
We also looked at the banking products each bank offers to make sure you’re getting the best variety. Here are a few criteria we considered when putting together this list of banks.
Interest Rates
A bank keeps your money safe, but it’s also a way to build on what you already have. If you’re going to save money, why not earn a little interest on that balance?
In building the above list, we looked at which savings account paid the most, finding that often the best bank for that was an online-only bank. We also looked at which bank offers the best rates on CD accounts and found many local banks had the best deal on those.
We also paid attention to the interest rates that banks charge on loans and credit cards. Smaller financial institutions like credit unions often compete with large banks by offering reduced rates on these products as an account holder perk.
Large Branch Network
You might never need in-person help with your account, but when you do, it’s important to be able to find a branch. You don’t need a large bank to get a national network of branches, though. Many online banks and credit unions are part of a partner agreement that offers branches across the country, both in major cities and more rural areas.
Large ATM Network
While you’re looking into coverage areas, withdrawing money should also be a priority. Make sure your bank has an ATM network that will cover you even when you’re away from home. Online or mobile banking can take care of services like online bill pay and mobile check deposit, but mobile services can’t handle banking transactions like cash deposits and withdrawals.
New Mexico residents have no shortage of banking options, from big banks to small community banks. Whether your priority is to earn interest on your balance or enjoy low fees on your checking account, you can easily find a bank that fits your needs.
For years, the unquestionable leaders of the premium card market were The Platinum Card® from American Express and the Chase Sapphire Reserve.
That all changed when Capital One shook up the industry with its debut of the Capital One Venture X Rewards Credit Card (see rates and fees) in late 2021 — undercutting both of its rivals by offering competitive perks at a lower $395 annual fee.
Perhaps you’re one of the many Sapphire Reserve cardmembers who’ve questioned your loyalty to Chase with the launch of the Venture X. Or, maybe you’re on the hunt for your first premium travel rewards card.
Today, we’ll help you decide whether the Capital One Venture X or the Chase Sapphire Reserve is the better card for you.
Comparing the Capital One Venture X and the Chase Sapphire Reserve
Feature
Capital One Venture X
Chase Sapphire Reserve
Annual fee
$395.
$550.
Welcome bonus
Earn 75,000 bonus miles after you spend $4,000 in the first three months of account opening.
Earn 60,000 bonus points after you spend $4,000 in the first three months of account opening.
Earning rate
10 miles per dollar on hotels and car rentals booked through Capital One Travel.
5 miles per dollar on flights booked through Capital One Travel.
2 miles per dollar on all other eligible purchases.
10 points per dollar on hotels and car rentals through Chase Ultimate Rewards.
5 points per dollar on flights through Chase Ultimate Rewards.
3 points per dollar on all other travel and dining.
1 point per dollar on all other eligible purchases.
Statement credits
Up to $300 in annual statement credit toward travel booked through Capital One Travel.
Up to $100 Global Entry/TSA PreCheck credit, every four years.
Up to $300 in annual statement credit toward travel purchases.
Up to $100 Global Entry/TSA PreCheck/Nexus credit, every four years.
Other card benefits
Priority Pass lounge access for the primary cardholder and complimentary access for two guests.
Capital One lounge access for the primary cardholder and up to two guests.
10,000 bonus miles received every card anniversary.
Complimentary Hertz President’s Circle status*.
Travel and purchase protections.
No foreign transaction fees.
Priority Pass lounge access for the primary cardholder and up to two guests.
Chase lounge access for the primary cardholder and up to two guests.
Complimentary car rental elite status with National Car Rental, Avis and Silvercar.
Partner benefits like a DoorDash DashPass membership (through 2024).
Travel and purchase protections.
No foreign transaction fees.
*Upon enrollment, accessible through the Capital One website or mobile app, eligible cardholders will remain at upgraded status level through December 31, 2024. Please note, enrolling through the normal Hertz Gold Plus Rewards enrollment process (e.g. at Hertz.com) will not automatically detect a cardholder as being eligible for the program and cardholders will not be automatically upgraded to the applicable status tier. Additional terms apply.
Annual fee
The annual fee on the the Sapphire Reserve is $550. Note that it costs an additional $75 to add an authorized user.
At $395 per year, the Capital One Venture X is one of the most affordable premium cards. Best of all, you can add up to four authorized users for no additional cost.
Winner: The Capital One Venture X for its lower annual fee for the primary cardholder and no additional cost for up to four authorized users.
Welcome bonus
Both cards require the same amount of spend in a given time frame ($4,000 in the first three months of account opening) to unlock their introductory offers.
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TPG values Chase Ultimate Rewards points slightly higher than Capital One miles due to its superior transfer partners — we estimate that Ultimate Rewards points are worth 2 cents apiece while Capital One miles are worth 1.85 cents apiece.
The Capital One Venture X’s welcome bonus of 75,000 miles is worth about $1,388, while the Sapphire Reserve’s bonus of 60,000 points is worth $1,200.
Winner: Capital One Venture X.
Earning
Which premium card will offer better returns in the long run? For this analysis, we factored in the value of each currency to their rewards rates:
Capital One Venture X
Chase Sapphire Reserve
Earning rate
10 miles per dollar on hotels and car rentals booked through Capital One Travel (18.5% return).
5 miles per dollar on flights booked through Capital One Travel (9.25% return).
2 miles per dollar on all other eligible purchases (3.7% return).
10 points per dollar on hotels and car rentals booked through Ultimate Rewards (20% return).
5 points per dollar on flights booked through Ultimate Rewards (10% return).
3 points per dollar on all other travel and dining purchases (6% return).
1 point per dollar on all other eligible purchases (2% return).
Both the Venture X and the Sapphire Reserve offer fantastic returns for travel purchased through their respective portals.
While the Venture X offers simplicity, with 2 miles per dollar on all other purchases, the Chase Sapphire Reserve offers higher returns for two lucrative bonus categories — travel (booked outside of Ultimate Rewards) and dining purchases.
Chase defines travel as a broad category, including everything from rental homes and buses to rideshares and parking fees. Similarly, dining purchases include takeout and delivery services, widening the spectrum for what falls under this category.
Winner: Chase Sapphire Reserve, as it offers bonus categories beyond travel portal bookings. However, non-bonus purchases only garner 1 point per dollar. If you’re the type of consumer who has a ton of varied spend outside of travel and dining, then the Venture X may be a better card for you for its simple earning rate.
Redeeming
With both of these programs, transferring your points to travel partners is the most rewarding way to redeem your points and miles.
The Chase Ultimate Rewards program is a long-time crowd favorite. You can transfer your Ultimate Rewards points at a simple, 1:1 ratio (so every 1,000 Chase points equates to 1,000 points or miles in a Chase transfer partner program).
On the other hand, the Capital One miles program has partners that transfer at a 1:1 ratio for the most part, but there are a few exceptions that transfer at a less favorable ratio.
Let’s compare the partners side-by-side (all transfer at a 1:1 ratio unless otherwise stated).
Capital One miles
Chase Ultimate Rewards
Aeromexico Club Premier.
Air Canada Aeroplan.
Air France-KLM Flying Blue.
ALL Accor Live Limitless (2:1).
Avianca LifeMiles.
British Airways Executive Club.
Cathay Pacific Asia Miles.
Choice Privileges.
Emirates Skywards.
Etihad Guest.
EVA Infinity MileageLands (2:1.5).
Finnair Plus.
Qantas Frequent Flyer.
Singapore Airlines KrisFlyer.
TAP Portugal Miles&Go.
Turkish Airlines Miles&Smiles.
Virgin Red.
Wyndham Rewards.
Aer Lingus AerClub.
Air Canada Aeroplan.
Air France-KLM Flying Blue.
British Airways Executive Club.
Emirates Skywards.
Iberia Plus.
IHG Rewards.
JetBlue TrueBlue.
Marriott Bonvoy.
Singapore Airlines KrisFlyer.
Southwest Rapid Rewards.
United MileagePlus.
Virgin Atlantic Flying Club.
World of Hyatt.
As you can see, there are quite a few overlaps. While Capital One offers more loyalty partners, there are no domestic airlines (after it lost JetBlue TrueBlue as a partner).
Meanwhile, Chase offers three domestic airlines — JetBlue, Southwest and United — as well as one particularly lucrative hotel program, World of Hyatt.
Of course, both the Venture X and Sapphire Reserve offer other (less lucrative) redemption options, such as gift cards and cash back.
However, with the Sapphire Reserve, your points are worth 50% more toward any travel booked through the Ultimate Rewards portal, making your points worth 1.5 cents apiece. While this isn’t as rewarding as transferring your points to Chase’s transfer partners, this redemption option is useful if you are having trouble finding award space.
Meanwhile, the Venture X offers fixed-rate travel redemptions at just 1 cent per mile — and while this can be applied to any travel purchase you charge to the card, it’s still notably lower.
Winner: Chase Sapphire Reserve. More partners doesn’t necessarily equate to more value, which is why we peg Ultimate Rewards points at a higher value than Capital One miles. And even the fixed-value redemption option is 50% more lucrative.
Other benefits
Let’s talk about what makes these cards truly premium.
For starters, there’s an up to $300 annual travel statement credit on both cards. However, the Venture X’s travel credit is less flexible since you’ll have to book all travel on the Capital One portal in order to receive reimbursement. Meanwhile, the Sapphire Reserve will automatically reimburse for any purchases under the “travel” umbrella up to the $300 limit — and they don’t necessarily have to be booked directly with Chase.
As for lounge access, both cards offer Priority Pass membership, giving you access to 1,300-plus lounges worldwide.
On the one hand, the Venture X gets you Unlimited complimentary access for you and two guests, whereas the Sapphire Reserve limits to you to two free guests (and then $27 each for additional guests.) Where the Sapphire Reserve fights back is that you can visit Priority Pass restaurants and spas, whereas you’re limited to lounges with the Venture X.
Both issuers are getting into the lounge game themselves, with Capital One’s first lounge open at Dallas-Fort Worth International Airport (DFW) and more to come. The Venture X gets you access.
Chase has its first U.S. lounge open in Boston and the Sapphire Reserve card will get you access.
Finally, both are Visa Infinite cards, giving you high-level travel and purchase protections. Both also come with ancillary benefits that won’t necessarily move the needle for prospective applicants (such as the 10,000-mile anniversary bonus on the Venture X and partner benefits with the Sapphire Reserve), but these perks are all worth taking advantage of if you decide to apply for either card.
Winner: Tie. While the Chase Sapphire Reserve’s $300 travel credit is much more flexible, the Capital One Venture X comes with 10,000 bonus anniversary miles. They’re very similar on lounges.
Bottom line
Both the Venture X and the Sapphire Reserve have their own strengths and weaknesses, so it’s impossible to generalize which card comes out on top.
However, for a much more manageable annual fee, the Venture X is a fantastic offering — if you don’t mind using the travel portal to unlock many of the benefits on the card.
For those who prefer to book directly with travel providers, the Sapphire Reserve is likely the better option for you — but at the cost of a higher $550 annual fee.
Official application link: Capital One Venture X Rewards Credit Card Official application link: Chase Sapphire Reserve
For Capital One products listed on this page, some of the above benefits are provided by Visa® or Mastercard® and may vary by product. See the respective Guide to Benefits for details, as terms and exclusions apply.