Discovery Bank does not offer business checking accounts
Discovery Bank, owned by Discover Financial Services, focuses on personal banking products — savings accounts, money market accounts, and personal checking accounts. The bank does not have a business checking product line, which means you cannot open a business account with them regardless of your company structure or size.
If you bank with Discovery and need a business checking account, you will need to open one at a different bank. Many national banks, regional banks, and online banks offer business checking, each with different fee structures, minimum balance requirements, and features.
Key Takeaways
- Discovery Bank only offers personal banking products and does not provide business checking accounts.
- You will need to choose a different bank if you want a business checking account for your company.
- Other online banks like Square Cash for Business, Novo, and Lemonade Bank offer business checking with lower fees than traditional banks.
- National banks like Chase, Bank of America, and Wells Fargo offer business checking but typically charge monthly maintenance fees and require higher minimum balances.
- Compare fee structures, minimum balance requirements, and features across banks before opening an account.
Where to open a business checking account instead
Online banks tend to have lower monthly fees and lower minimum balance requirements than traditional brick-and-mortar banks. Novo, Square Cash for Business, and Lemonade Bank all offer business checking with no monthly maintenance fees. These accounts are designed for sole proprietors and small businesses and typically process transfers and deposits within one to two business days.
If you prefer a bank with physical branches, Chase, Bank of America, Wells Fargo, and US Bank all offer business checking. These accounts usually charge monthly fees ranging from $10 to $25, though fees may be waived if you maintain a minimum balance or set up direct deposit. Processing times for transfers and deposits are typically the same as online banks.
Credit unions also offer business checking accounts, often with lower fees than national banks. You must be a member of the credit union to open an account, which usually requires living or working in a specific geographic area or belonging to a particular profession or organization.
What you will need to open a business checking account
Most banks require the same basic documents regardless of whether you choose an online or traditional bank. You will need your Social Security number or Employer Identification Number (EIN), a government-issued photo ID, and proof of your business address. If your business is registered as an LLC or corporation, you will also need a copy of your articles of incorporation or formation documents.
Some banks ask for a business license or Doing Business As (DBA) certificate if your business operates under a name different from your personal name. A few banks request proof of business activity, such as invoices or tax returns from the previous year, though this is less common for new businesses.
The entire process usually takes 10 to 15 minutes online or 20 to 30 minutes in person at a branch. You can typically begin using your account within one business day of approval.
Comparing fees across business checking accounts
| Bank Type | Monthly Fee | Minimum Balance | Overdraft Fee |
|---|---|---|---|
| Online banks (Novo, Square Cash) | $0 | $0 | $0 (most) |
| National banks (Chase, Bank of America) | $10–$25 | $500–$2,500 | $35 |
| Regional banks | $5–$15 | $250–$1,000 | $30–$35 |
| Credit unions | $0–$10 | $0–$500 | $25–$35 |
Overdraft fees vary widely. Some online banks do not charge overdraft fees at all, while traditional banks typically charge $30 to $35 per overdraft. A few banks offer overdraft protection, which links your business checking account to a savings account and transfers funds automatically if you overdraw.
Monthly fees are often waived if you maintain a minimum balance, set up direct deposit, or maintain a certain number of debit card transactions per month. Read the fee schedule carefully before opening an account, as these conditions vary by bank and account type.
Features to consider beyond fees
Business checking accounts differ in the tools and features they offer. Most accounts include online banking, mobile deposits, and the ability to send wire transfers. Some banks offer accounting software integration, which automatically imports transactions into QuickBooks or other accounting programs.
Check writing capabilities vary. Online banks may not offer physical checks or charge a fee for them, while traditional banks usually include checks in your account. If you write checks frequently, confirm that your bank includes them before opening an account.
Customer support availability also differs. Online banks typically offer support by phone, email, or chat during business hours, while national banks with branches offer in-person support as well. If you need same-day help with account issues, a bank with local branches may be more convenient.
Moving your business banking from Discovery
If you currently have a personal account with Discovery and want to move your business banking elsewhere, you do not need to close your Discovery account. You can open a business checking account at another bank and keep your personal account open if you use it for personal expenses.
When you open a new business checking account, the new bank can help you set up automatic transfers from your old account if needed. You will need to update any automatic payments or direct deposits to point to your new business account. This usually takes three to five business days to process.
Notify your customers and vendors of your new business account number if they send payments directly to your account. Update your business records, invoices, and website with the new account information to avoid payment delays.
Frequently Asked Questions
Can I use my Discovery personal checking account for business purposes?
Discovery's personal checking account terms do not prohibit business use, but personal accounts lack features designed for business, such as accounting software integration or the ability to accept multiple users. For tax and accounting purposes, it is cleaner to keep business and personal finances separate using a dedicated business account.
Do I need an EIN to open a business checking account?
No. Sole proprietors can open a business checking account using their Social Security number. You only need an EIN if your business is structured as an LLC, S-corporation, or C-corporation, or if you have employees. Many online banks accept either.
How long does it take to open a business checking account?
Most banks approve and activate business checking accounts within one business day of your application. You can usually begin using the account immediately, though some banks hold deposits for one to two business days before the funds are available.
What happens to my Discovery account if I open a business account elsewhere?
Your Discovery personal account remains open and active. You can keep it for personal expenses and close it whenever you choose. There is no requirement to close your personal account when you open a business account at another bank.
Which online bank is best for a new small business?
Novo and Square Cash for Business are popular choices for new businesses because they have no monthly fees, no minimum balance, and no overdraft fees. Both offer mobile deposits and online banking. Choose based on which bank's features and customer support align with your business needs.