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Capital One Spark Business Checking Account Review

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I created my small business in 2010. One of the very first things I did was sign up for a business checking account.

Living in Miami at the time, there was a brick-and-mortar Citi location just a half block away. So, that is the bank I signed on with.

The “green” business checking account was their basic package. It offered no interest rate but free service. Correction: the account was free as long as I kept a $5,000 average daily balance.

Compare that account to the Capital One Spark Business Checking Account now available to consumers? Well, the differences between a good business checking account and a bad one are obvious.

Capital One Spark Business Checking Interest Rate

One of the immediate attractions to the Spark Business Checking Account is that it pays an interest rate.  For the first year, all new account holders will receive an APY of 1.00%. After the first year is up, the ongoing APY will change to 0.40%.

On the surface, the APY compared to high yield savings account stinks.  The fed is slowly and steadily raising interest rates, though, and now banks are following, finally offering account holders interest rates above 1%.

However, for checking accounts, you’ll find there are very few that offer an interest rate… let alone one that can compete with a savings account for the first year. And for those that still think the interest rate isn’t very good, consider that there are better places to hold your business funds than in an online checking account.

There is no minimum balance requirement to earn the APYs listed above, and there are no restrictions or caveats.

Spark Business Additional Features

In addition to a very competitive interest rate, the Capital One Spark Business Checking account will offer the following perks:

  • No monthly account maintenance or service fees
  • Free online bill pay and online invoicing
  • Access to the Spark Mobile Checking App
  • 40,000 fee-free ATMs nationwide

No monthly account maintenance fees. Monthly maintenance fees are the fastest way to hate your checking account. This is especially true for small businesses, when you review your statement each month to find a charge you did not expect, because of a rule you did not remember. Oh, the RAGE.

Well, Capital One is offering this business account with no fees and no strings attached. The only fee you’re going to receive is a non-sufficient funds fee if you attempt to overdraw your account or write a check that your bottom can’t cash.

One of the annoying parts of my initial Citi Business checking account was that I had to make at least 12 debits each month, otherwise I would be charged a $9.99 monthly maintenance fee. That’s not the case here.

Free online bill pay and invoicing. Everybody offers free online bill pay, so no big deal. But online invoicing? Now, that can be expensive.

A lot of companies I’ve worked with and/or requested work from use things like Freshbooks or Quicken to invoice. Those services are not free. And they add up. Opening a Capital One Spark Business Checking Account and using the invoicing feature can save you the $20+ a month from outside invoicing services.

Spark Mobile Checking App. For the technologically-advanced (AKA not my parents), Capital One offers a great app for download. It assists in tracking your balance, making deposits, setting up bill pay, and scheduling other payments.

Currently available in the Google Play shot, it has a very good rating of 4.5 stars. Looking through some of the most recent one star reviews, the common theme is that the app can kick you out while taking a picture of your check to deposit.

40,000 Free ATMs. Capital One runs on the Allpoint network, so any ATM transaction from one of these ATMs is fee-free. If, however, you decide to withdraw money from your account on an ATM not in the network (think Casinos, for example), then the ATM you use will charge a fee and Capital One will charge a fee.

In the United States, there are just over 38,000 ATMs on the Allpoint network and another 2,000 Capital One-specific ATMs. So, a quick online search is likely to point to an ATM nearby.

Spark Business Checking Snapshot

Capital One has created a very strong offering here, promising not to draw on the account of its customers for everyday transactions.

Compared to other online checking accounts, that’s already a win. When you add the quality interest rate and additional features, though, any business would likely benefit from keeping their checking account with Capital One.

Published or updated July 13, 2017.

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