Nearside 2023 Review
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.
Pros
- No minimum deposit or balance requirements
- No monthly fees or overdraft charges
- Unlimited 2.2% cash back on all debit card purchases
- Free ACH and bill pay to pay your bills
- Integrates with numerous accounting, payroll, and other business software
Cons
- Online-only banking
- Cannot deposit checks; no remote deposit capture
- Not able to send or receive wire payments
- Not able to accept cash or coin deposits
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 Integrations
Many small business owners rely on tools like Quickbooks, PayPal, and other apps to keep their business running. Managing all of these tools can be a hassle and importing information from each into your accounting software take time.
Nearside integrates with many popular business applications, making it easy to import all of the information that you need. This can make it easier to keep track of your business’ finances.
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.
Frequently Asked Questions
What fees should I watch out for?
With Nearside, there are no monthly maintenance or overdraft fees to watch out for. The only fees that Nearside charges are $25 for stop payments and ATM fees for out-of-network ATMs. Nearside allows free withdrawals at over 55,000 participating Allpoint ATMs within the U.S.
Who qualifies for a business bank account?
Nearside offers business checking accounts to all types of U.S.-based businesses. You can open an account as a sole proprietor, corporation, or limited liability company (LLC). With no minimum balance requirements, a Nearside business bank account is available to everyone. Home-based businesses are welcome, but all customers must use a physical address instead of a P.O. box to open an account. This makes the Nearside business checking account ideal for freelancers, gigsters, and essentially anyone that is even thinking about starting a business, even when they don't have a separate business location.
How can I deposit money into my Nearside Business Account?
Business owners can deposit money into their Nearside business checking account through a transfer from a linked bank account they own or an ACH deposit from a client, vendor, or another source. Nearside does not accept cash or coin deposits, checks, or wire transfers.
How can I pay vendors, contractors, and employees?
With the Nearside business account, you can make payments in three ways – checks, ACH transfers, and debit card. Businesses can initiate checks through Nearside online banking for free. Additionally, ACH transfers are also free. Nearside customers have a business debit for online, telephone, or in-person payments. All debit card transactions earn 2.2% cash back throughout 2022.
Is Nearside a good bank?
Whether Nearside is a good bank depends on the needs of your business. For cash-heavy businesses that operate at a physical location, Nearside likely falls short because of the difficulty of depositing cash.
However, online businesses don’t need to worry about that disadvantage and can benefit from many of its services, including debit card rewards and low fees.
Is Nearside FDIC insured?
Yes, Nearside is fully insured by the FDIC. That means that if the bank is unable to return your deposits, the FDIC will reimburse you for up to $250,000.
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