Capital One Spark Business Checking Review 2022

Who is Capital One Spark Business Basic Checking® for?

The Capital One Spark Business Basic Checking® account is a great fit for small business owners who keep a few thousand dollars in their account and don’t want to be bogged down with transaction fees.

It offers unlimited free transactions, including deposits, withdrawals, and transfers, so businesses who move their money around often don’t have to worry about being nickeled-and-dimed.

Though the bank is primarily online, it does have some branches and allows cash deposits, so it’s an option worth considering if you have customers who pay you in cash. However, businesses that receive more than $5,000 in cash payments per month may find more affordable options elsewhere.

Features of the Capital One Spark Business Basic Checking® account

Here are some of the standout features of the Capital One Spark Business Basic Checking® account.

1. Unlimited free transactions

One of the biggest draws of the Capital One Spark Business Basic Checking® account is that it allows you to make unlimited monthly deposits, withdrawals, and transfers.

Many other business checking accounts, particularly those at brick-and-mortar banks, restrict your transactions and charge costly fees for exceeding their monthly limits. If your company moves money around frequently, there’s no overstating the value of this Capital One business bank account.

2. Affordable cash deposits

Capital One allows Spark Business Basic Checking® account holders to deposit up to $5,000 in cash per month, which is on par with what many of the best small business checking accounts offer and better than many online business checking accounts, which often don’t allow cash deposits.

If you exceed the $5,000 per month, you’ll pay an additional fee of $1 per $1,000 deposited, but this is also pretty reasonable.

3. Free overdraft protection with a linked account

This Capital One small business banking account includes free overdraft transfers when you have funds available in a linked small business deposit account.

Many other business checking accounts allow overdraft transfers but they often charge fees, so it’s nice to see Capital One offering this service for free. This isn’t a guarantee that you’ll avoid all overdraft fees, but it can reduce your odds of paying $35 per transaction.

How to access your money with the Capital One Spark Business Basic Checking® account

If you’re thinking about opening a Capital One Spark Business Basic Checking® account, here are your options for depositing and withdrawing funds.

Deposit options

You can deposit money into your Capital One Spark Business Basic Checking account using any of these methods:

• Electronic transfer
• Wire transfer
• Mailed check
• Mobile-deposited check
• Branch deposit
• ATM deposit

You can find the nearest Capital One branch or ATM using the locator tool on the company’s website or in its mobile app.

Withdrawal options

These are your options for withdrawing funds from the Capital One Spark Business Basic Checking® account:

Advantages to using Capital One for your business checking account

There are many advantages to opening a business bank account with Capital One. Here’s a look at some of the most important.

1. Variety of business banking products

In addition to its business checking accounts, Capital One offers business savings accounts, loans, credit cards, merchant services accounts, and more. This makes it a one-stop-shop for small business owners.

Capital One also offers commercial accounts for larger companies, so it shouldn’t be difficult to find accounts that suit you even as your business grows over time.

2. Free, user-friendly online account management

All Capital One business banking accounts include free online and mobile banking with bill pay. Its mobile apps also allow you to remotely deposit checks with no limits on monthly deposits.

No matter whether you use a computer, tablet, or phone, you should find managing your funds to be pretty straightforward, especially if you’re already used to online banking.

3. Some branch locations

Capital One is more of a hybrid bank than a true brick-and-mortar institution, but it does have some branches and more informal Capital One Cafes where you can get in-person assistance with your small business banking needs.

You can locate the nearest branch with the locator tool available on Capital One’s website and in its mobile app. Having a branch near you also makes cash deposits a lot more convenient, though you can deposit cash through a Capital One deposit-taking ATM if there isn’t a branch near you.

Drawbacks of using Capital One for your business checking account

While there are many reasons to consider doing your small business banking with Capital One, there are also a few drawbacks you need to weigh.

1. Out-of-network ATM fees

Capital One charges you anywhere from $2 to $5 every time you use an ATM that’s not within its network, and that’s in addition to the fee the ATM owner might charge you. This could make Capital One a costly choice for businesses that aren’t located near a Capital One ATM. However, if you rarely withdraw cash, this may not be a problem.

2. Above-average minimum deposit

The Capital One Spark Business Basic Checking® account has a minimum initial deposit that’s a little higher than what many of its competitors charge. It won’t affect all small business owners, but if you have little cash to spare, you may prefer to go with a bank that doesn’t have a minimum deposit requirement for its small business banking customers.

3. Fees for incoming wire transfers

Outgoing wire transfer fees are pretty standard in the industry, but incoming wire transfer fees are much less common.

Capital One is one of the few banks that charge these, and that could make the account costly if you’re used to accepting deposits into your account this way. But if wire transfers aren’t a part of your day-to-day business, this probably won’t bother you.

Alternative business checking account options from Capital One

If the Capital One Spark Business Basic Checking® account feels too restrictive for you, consider the Capital One Spark Business Unlimited Checking® account. This account offers unlimited transactions and cash deposits plus a few free wire transfers per month.

However, its monthly fee is much higher and the requirements to waive that fee are much steeper.

Is the Capital One Spark Business Basic Checking® account right for you?

The Capital One Spark Business Basic Checking® account is a flexible account that blends some of the best features of online and brick-and-mortar business checking accounts. It’s an option worth considering, but no business checking account is right for every company.

Before you make up your mind, compare it with some of our other top business checking accounts to see if it’s the right fit for your organization.