A kabbage business checking account offers a lot of benefits for small business owners, including a high APY and no minimum deposit requirement. It also avoids many of the fees that are associated with traditional bank accounts.
Kabbage’s banking services are provided by Green Dot Bank and the account is FDIC-insured up to $250,000. The company partnered with Green Dot to offer this banking-as-a-service product.
1. High APY
The kabbage business checking account offers a high APY for small business owners who want to earn interest on their money. It offers an APY of 1.10% on balances up to $100,000, making it one of the highest-yielding business checking accounts available.
The account also allows customers to deposit cash at over 90,000 locations across the country and withdraw it at 19,000 free ATMs. This is great for SMEs with limited bank branches. However, it can be a hassle to withdraw cash from a variety of retailers, especially if they charge a fee.
Unlike many online banking competitors, Kabbage does not charge a monthly maintenance fee. It also doesn’t impose a minimum balance requirement and offers no overdraft fees.
In addition to the checking account, Kabbage also provides a suite of other products and services that support cash flow management. These include a mobile app that allows you to access your account, take out a line of credit and accept payments via invoices and custom payment links.
Additionally, you can apply for a business loan through Kabbage and manage repayments through your dashboard. If you’re approved, you can use the funds to pay your bills or invest in other small business needs.
Finally, you can connect your kabbage business checking account to the kabbage Insights and Payments solutions to receive daily cash flow forecasts and analytics. This can help you make informed business decisions that improve cash flow.
Lastly, the kabbage checking account offers a 1.10% APY and no monthly fees. It is also backed by Green Dot Bank and FDIC insured to the maximum limit.
2. No minimum deposit
Kabbage offers a high-yield business checking account for startups. There’s no minimum deposit required and the account earns a high annual percentage yield on balances up to $100,000.
This bank account also doesn’t charge any monthly maintenance fees or transaction fees. This is a huge advantage for startup businesses who don’t want to be stuck paying for extra services they don’t need.
However, the account does charge a fee for teller cash withdrawals ($3 per withdrawal), foreign transactions (3% of the total transaction amount) and payment orders/outgoing domestic wire transfers ($25 per transaction). This may not be ideal for business owners who need to move large amounts of money frequently.
Additionally, this account doesn’t offer a business credit card. If you want to accept credit cards from customers, you’ll need a business credit card from another bank.
In addition to business banking, Kabbage offers a few other products for small business owners. These include Kabbage Payments, which allows you to send invoices, generate custom pay links and accept credit card payments online.
If you want to access additional capital, you can apply for a revolving business line of credit through Kabbage Funding(tm). You can use this to cover expenses and expand your business.
You can also connect your Kabbage business checking account to other services such as Kabbage Insights, which lets you analyze financial data and performance. This makes it easier for you to track your cash flow and make more informed decisions about your business finances.
The application process is simple, and you’ll need basic business information and personal identification to complete the application. Once you’re approved, your funds should be available within hours.
3. No overdraft fees
Kabbage’s business checking account is a popular option among small businesses looking for high APY rates and free cash deposits. However, there are a few fees to consider, especially if you plan on making frequent deposits or withdrawals.
The good news is that the Kabbage business checking account does not charge monthly maintenance fees or minimum balance requirements. In fact, it has one of the lowest overdraft fees of all online business bank accounts.
In addition, Kabbage offers a high APY rate on its business checking account and lets customers have five separate savings nests, called Reserves, to organize their finances and set aside funds for short-term goals or emergencies. These subaccounts also earn a high APY, so they can be a great way to save for your next big project or emergency.
For businesses that need to make cash deposits, Kabbage also provides a network of Green Dot ATMs where you can deposit money without paying additional fees. You can also use the ATM finder within the app to locate locations near you.
Another benefit of the kabbage business checking account is that it’s available nationwide, so you can get cash in any place that accepts debit cards or credit cards. The downside, though, is that you may have to pay a fee when visiting a retail location, if you withdraw cash using a teller machine or for foreign transactions.
In addition to the checking account, Kabbage offers a variety of other banking services, including small business loans and credit lines. You can apply for these loans and repay them through your business checking account, which helps you manage your debt efficiently. In addition to its credit lines, Kabbage offers a business payment service powered by parent company American Express. This service allows you to accept debit and credit card payments for up to $10,000 per transaction.
4. Free mobile check deposit
If you have a business that deals in cash, you might be happy to know that Kabbage offers a free mobile check deposit service. This is a huge perk since it means that you won’t have to worry about paying a monthly fee or a transaction fee on transactions that are performed using the app.
In addition to this free service, kabbage also has a high annual percentage yield (APY) on deposits up to $100,000. Moreover, it allows you to set up five separate sub-accounts called “Reserves.” These can be used to manage your cash more efficiently and keep track of certain expenses.
These accounts work much like savings accounts and they can be accessed from the kabbage app or online dashboard. They can help you manage your cash flow better and save money for one-off expenses or projects.
For example, you can use these accounts to put aside money for self-employment taxes. Or, you can use them to deposit funds for an emergency or to pay for an investment opportunity.
Moreover, the account comes with free access to Kabbage Insights, an intuitive tool that analyzes your cash flow to help you make smarter decisions about your finances. This can help you save on interest payments and reduce unnecessary spending.
Kabbage is an online bank that offers a variety of services geared toward small businesses and freelancers. They have a wide network of 19,000 fee-free ATMs and low fees for ACH transfers, online bill pay, direct deposit, and mobile check deposit. They also have no minimum opening deposit or minimum balance requirements.
5. No minimum balance requirement
Unlike many online business checking accounts, kabbage does not require a minimum balance to open a business account. This allows for easy access to the account and a more straightforward application process.
Kabbage Checking is a free, online-based business checking account that provides a competitive interest rate and nationwide ATM access. It also connects to the rest of the Kabbage product suite, allowing you to manage your finances on an integrated digital platform.
This is a great option for small businesses looking to save money on their monthly fees and bank charges. It is backed by Green Dot Bank, which is FDIC insured, so you can rest assured that your deposits are safe.
The kabbage checking account is available for most types of small businesses. Documentation requirements vary by type of business, but you will need an EIN number and other information.
One of the most important features of this business checking account is its high-yield APY. The 1.10% annual percentage yield is much higher than most other online business checking accounts, and you can earn it on up to $100,000 in your account.
If you are looking to squirrel away funds for a one-off expense or goal, Kabbage has five free sub-accounts called “Reserves.” These can be used like savings accounts, and each Reserve has its own interest rates.
You can deposit money into your account using the Kabbage mobile app or through cash deposits at participating retailers in the Green Dot network. You can also withdraw cash at 90,000 retail locations.
The kabbage checking account is a good choice for small business owners who want an online-based business checking account that pays a high interest rate and offers nationwide ATM access. However, it’s not a perfect fit for all businesses, as it does not offer third-party integration capabilities and is relatively new to the market.