Nearside

A solid business checking account is the backbone of any business. Business owners need a checking account that offers attractive benefits, minimal fees, and convenient methods to make deposits and payments.

The Nearside business checking account can be opened in minutes, has no monthly fees or minimums, and earns unlimited 2.2% cash back on debit card purchases. This Nearside business checking review will tell you everything you need to know.

Nearside Bank Pros and Cons

Nearside Business Checking Overview

• Required Opening Deposit: $0
• Required Balance Minimum: $0
• Monthly Fee: $0
• APY: None
• Automated Clearing House (ACH) Fees: $0
• Overdraft Fees: $0
• Maintenance Fees: None
• Wire Transfer Fees: Not supported
• Cash Deposit Fees: Not supported
• ATM Fees: $0 for Allpoint network ATMs; $1 for out-of-network ATMs

How does the Nearside business checking account work?

Nearside business checking accounts are online-only FDIC-insured business bank accounts that perform much like a traditional bank account. All bank accounts are insured up to $250,000 through Nearside's relationship with LendingClub Bank, National Association, Member FDIC. This relationship continues from its time as Hatch Bank.

Accounts can be set up in minutes and there are no credit checks or income requirements. Nearside does not require a minimum deposit amount to open or a monthly balance to waive fees, which makes them attractive to startups, small businesses, and side hustlers.

Once your account is opened, you'll receive a virtual debit card to use immediately. Your permanent debit card will be mailed to you within three-to-five business days after your account has been opened.

Customers can receive deposits, send payments, and monitor their accounts online as usual. However, there are some limitations to deposits and withdrawals with Nearside that are defined below.

Nearside offers numerous integrations with many of the tools and apps that you use every day. Integrations include Quickbooks, Xero, Gusto, Amazon, PayPal, Expensify, Lyft, Shopify, Etsy, Square, Venmo, Stripe, and more. You can also export your transactions into a CSV file for accounting solutions that don't have a pre-built integration.

Account Features

Unlimited 2.2% Cash Back on Debit Card Purchases

With your Nearside business debit card, you'll receive unlimited 2.2% cashback on all purchases for the remainder of 2022. After this introductory period is over, debit card transactions earn 1% cash back. All cash back earned from your business debit card is automatically added back into your checking account.

No Hidden Fees

One of the most appealing features of the Nearside business checking account is that it does not charge traditional bank fees. There are no monthly maintenance fees, NSF fees, debit card replacement fees, or in-network ATM fees. Online bill pay and ACH transfers are also free. The only fees you'll incur are for stop payments ($25) and when you use an out-of-network ATM ($1 + provider fees). Nearside is part of the Allpoint network, so you have access to over 55,000 in-network ATMs that do not charge fees for withdrawals.

Perks For Nearside Business Checking Account Customers

Nearside has numerous partnerships with vendors that small businesses and entrepreneurs use regularly. These exclusive perks include popular brands like Gusto, Indeed, Quickbooks, SEMRush, Square, Xero, Yelp, and Zenefits. Partner offers change regularly, so check the Nearside perks page for the latest offers.

Financing Options

If you open a Nearside business bank account, you’ll get access to custom loans of up to $10,000 to help grow your business. To qualify, all you need is to keep your account open for three months and show your business’ income.

You can use the funds from the loan to smooth out your company’s cash flow or to help invest in and grow your business. You repay the loan automatically with weekly repayment from your Nearside account.

Business Software Integrations

Account holders have the option to seamlessly integrate their business checking accounts with various third-party platforms, including:

• Accounting Software: Integration with Expensify, QuickBooks, and Xero allows for automatic syncing of banking data, reducing the burden of manual data entry.
• E-Commerce Platforms: Integration with Amazon, Etsy, and Shopify facilitates smoother e-commerce operations.
• Invoicing Tool: Alto can be integrated for efficient invoicing. Payment Processing Services: Payment processors like PayPal, Square, Stripe, and Venmo can be integrated for streamlined payment processing.
• Payroll Service: Integration with Gusto enhances payroll management.
• Other Platforms: Other integrations include platforms like Airbnb and Lyft for additional versatility.

These integrations ensure automated synchronization of banking data with the selected software, simplifying various business processes and minimizing manual data input tasks.

Business Incorporation

Through its Sprout service, Nearside can help you incorporate your business and deal with a lot of the paperwork that makes starting a company annoying. That includes getting an Employer Identification Number for you and paying business registration fees.

The main drawback: Limited deposit and payment options

Customers can receive deposits, send payments, and monitor their accounts online as usual. However, there are some limitations to deposits and withdrawals with Nearside, including:

• Cannot deposit checks. Nearside, like its predecessor Hatch Bank, does not offer remote deposit capture through a mobile app or the ability to mail deposits to the bank. You must deposit checks into another account, then electronically transfer the money into your Nearside account.
• No cash or coin deposits. As an online-only bank, Nearside does not have the infrastructure to accept cash and coin deposits. Cash and coins must be deposited into a different bank account and transferred to Nearside.
• No physical checks for payments. Nearside offers online bill payment and ACH transfers for free, but they do not allow customers to order physical checks. While many bills can be paid this way, some businesses need physical checks for on-demand payments.
• Cannot send or receive wire transfers. The bank does not yet allow customers to send or receive wires. While Nearside offers free ACH transactions, those transfers can take several business days compared to same-day wire transfers.

Is Nearside Right For You?

Online bank accounts primarily focus on small businesses that don't deal with cash and coins or have a need to visit a branch. In exchange for those limitations, they generally have fewer fees and can offer better benefits and rates.

For many small businesses, the trade-off is worth it. Nearside offers an attractive set of features that appeal to many small businesses, such as free ACH payments and 2.2% cash back on debit card purchases. However, because of its limitations on traditional bank functions (e.g.: writing and depositing checks, sending and receiving wires), it may not be suitable as a primary checking account for your small business.

Because Nearside business checking accounts do not have a minimum deposit or balance requirements, they may work best as a secondary bank account for your business. This way, you can keep a primary bank to handle the day-to-day functions of depositing cash or checks, yet still have access to valuable benefits like free ACH payments and 2.2% cash back on debit card payments.

If you're unsure if a Nearside checking account is right for your business, you should compare some of the best business banking accounts to pick one with all of the features that you need.

How to apply for a Nearside business checking account

When you're ready to apply for your Nearside checking account, you'll need the following information:

• Your Social Security number
• Copy of your photo ID
• Company name
• Employer Identification Number (required for LLC or corporation)
• Bank account information
• Contact information

Applying for a checking account is simple and takes just a few minutes. Most customers receive instant approval online with confirmation via email.

Is It Safe And Secure?

Nearside operates exclusively online, utilizing advanced mobile-forward security features. It partners with the established fintech company Plaid for facilitating secure money transfers between accounts, enhancing transaction safety.

Your account with Nearside is FDIC insured, offering assurance that funds lost due to unauthorized access or hacking will be reimbursed. Nearside emphasizes robust security measures, including encryption and multi-factor authentication to safeguard users' data. Every login attempt requires not only a username and password but also a one-time code sent to the user's mobile phone for added security.

However, as with all online platforms, using Nearside carries an inherent risk of potential information theft. Prospective users should weigh this risk and their comfort level with it before opting for Nearside or any online banking service.

Is It Worth It?

Nearside presents an outstanding low-fee account ideally suited for individuals with side gigs and small business owners. The app boasts an intuitive user interface, making navigation straightforward. The offering of a 20% match on the initial deposit (capped at $40) and a 2.2% cash back on all debit purchases enhances its appeal.

Nonetheless, certain drawbacks may deter potential users. The complication in initiating transfers from the account and the necessity to contact customer service for resolution can be a significant inconvenience for busy entrepreneurs. While this issue is likely to be addressed in the future, it currently stands as a significant downside to the account.

Additionally, the exclusive reliance on Allpoint ATMs poses another challenge. Business owners dealing in cash or checks will be required to use these ATMs for deposits, adding an extra task to their already packed schedules. This could be considered an unnecessary burden by many self-employed individuals.

When Nearside Is a Good Fit

• You’re an Early-Stage Startup: All products and services from Nearside, including its business checking options, are tailored expressly for emerging businesses. With Sprout, a specialized product, Nearside takes on the task of navigating and completing the complex paperwork essential for establishing a Limited Liability Company (LLC), sparing businesses the bureaucratic hassle.
• You’re a Contractor, Gig Worker, or Freelancer: Nearside is an excellent choice for solopreneurs, thanks to its minimal to non-existent fees for business checking services. This aspect makes it especially favorable for individuals who may not have the same revenue stream as larger enterprises. Even those with limited credit histories can easily access its business lending services.
• You Rely on Digital Business Tools: Holders of Nearside cards enjoy access to various discounts, allowing them to economize on crucial business tools and services. Beyond this, Nearside's digital banking platform simplifies financial management by seamlessly integrating with several widely used business tools, including Amazon, QuickBooks, and Square, eliminating the need for manual data entry.
• You Desire Cash Back on Debit Card Purchases: Each transaction made with Nearside's debit card automatically earns a 2.2% cash back, without any upper limit. This feature allows users to continually earn rewards as they make their everyday business purchases.

When Nearside Is Not a Good Fit

• You Depend on In-Person Banking: Nearside does not operate physical branches at present. If in-person banking services are crucial for your business operations, consider opting for Chase. With a network of 5,100 branches nationwide, it’s a suitable option for entrepreneurs who favor traditional banking approaches.
• You Frequently Handle Cash: If your business entails regular cash transactions, Nearside might not be the best fit since it does not facilitate cash deposits. In this scenario, Bank of America stands out as a viable alternative. It allows businesses to deposit up to $7,500 monthly without any associated fees.
• You Regularly Engage in Wire Transfers: Nearside's business checking currently does not offer wire transfer support. If your business often involves wire transactions, consider using Relay, known for its economical wire transfer fees. It does not charge for incoming wire transfers, while outgoing domestic and international wire transfers are priced at $5 and $10 respectively. Opt for the Relay Pro account, and enjoy complimentary incoming and outgoing wire transfers, both within the country and internationally.

Alternatives to Nearside Business Checking

While Nearside's fundamental business checking offerings and introductory business resources are highly beneficial for startups and solo entrepreneurs in their initial phases, seasoned small business proprietors may find themselves in need of more extensive features. These additional features might encompass the ability to earn interest, access to savings accounts, availability of physical branches, support for cash deposits, wire transfer assistance, and the allocation of account permissions to team members.

Consider these three alternatives:

• Bluevine: Nearside’s cashback attributes present significant earning prospects. However, businesses aiming to augment the funds they retain may find Bluevine more advantageous. Bluevine allows business checking deposits to accumulate interest at a competitive rate of 2.0%, marking it as one of the highest in the industry.
• Chase: For business owners seeking a comprehensive spectrum of banking services, the American national bank, Chase, stands out as a top option. Chase extends a diverse array of business banking facilities, including checking, savings, loans, credit cards, and commercial banking.
• Relay: The fintech service, Relay, enables business owners to establish multiple checking accounts under one account number, providing a unified yet segmented financial management system. It allows users to delegate customizable account permissions to team members, thereby permitting the transfer of specific financial tasks to employees. Moreover, Relay boasts some of the market’s most cost-effective wire transfer fees.

These alternatives, with their distinct benefits, offer varied services that can be aligned with the diverse requirements of established small business owners, filling the gaps that Nearside's basic offering may not cover.