Choosing a business banking account is one of the first big decisions you’ll make as a business owner, and it can have lasting consequences. A great baking partner will simplify your financial management, offer tools for growth, and minimize fees. A subpar one will complicate your bookkeeping, lead to unnecessary expenses, and impede your ability to manage cash flow. 

With such high stakes and so many accounts to choose from, it’s important to carefully review your options. Navy Federal Credit Union can be a great choice for small business owners looking for low fees—but their accounts aren’t available to everyone. Read our detailed breakdown of Navy Federal business accounts to help you determine whether they’re the right banking partner for you.

About Navy Federal Credit Union

Navy Federal Credit Union (NFCU) is the largest credit union in the U.S., serving millions of members. Founded to support U.S. military personnel, NFCU operates under the supervision of the National Credit Union Administration.

While NFCU offers great benefits, not everyone can join. Membership is open to:

  • Active duty military across all branches, including the newly formed Space Force
  • Those in the Delayed Entry Program, ROTC and DoD Reservists
  • Veterans and retired military personnel
  • Family members of service members and veterans (parents, grandparents, spouses, siblings, children, grandchildren and household members)
  • Department of Defense employees, contractors and retirees
  • U.S. government staff assigned to DoD installations

Business Accounts

Both sole proprietors and established businesses can apply for a business account at Navy Federal Credit Union. However, all business owners must be Navy Federal Credit Union members in good standing. This includes meeting the membership criteria, such as maintaining an active account and adhering to the credit union’s policies.

Additionally, businesses should be prepared to provide necessary documentation, such as business licenses and tax identification numbers, to facilitate the application process. By ensuring you meet these requirements, you can take the first step toward opening a business account that supports your financial needs.

Navy Federal Business Account Features

Navy Federal Credit Union caters to businesses of all sizes with a variety of checking and savings options, business loans and two credit card options. They provide membership perks for small businesses, with a special focus on veteran-owned enterprises. Members enjoy round-the-clock account access and personalized support from small business experts. 

Business Checking and Savings 

All checking accounts include a Navy Federal GO BIZ Debit Card, complimentary starter checks and digital banking access.

For new ventures with limited cash flow, the no-fee Business Checking account offers 30 free non-electronic transactions monthly. The Business Plus Checking account might be a better fit as your business grows, providing 50 non-electronic transactions for an $8 monthly fee. 

Larger enterprises can benefit from the Business Premium Checking account, which offers tiered interest rates starting at 0.35% for balances under $10,000. It also includes 100 non-electronic transactions. This account’s monthly fee varies between $0 and $20, depending on your balance.

On the savings side, Navy Federal provides Money Market Savings Accounts (MMSA) that earn competitive dividends on balances exceeding $2,500, with no term restrictions. For larger sums, the Jumbo MMSA offers higher rates on balances over $100,000. If you want to maximize returns and don’t mind locking in your funds, certificates are available with terms from 3 months to 7 years. These start at just $100.

Business Loans

Navy Federal offers a variety of business loans. Commercial Real Estate Loans can be used for purchases, refinancing or renovations of commercial, investment, and mixed-use properties. These loans offer fixed- and variable-rate options with a standard 5-year term and 20-year amortization. Navy Federal provides Secured Business Lines of Credit (BLOC) with variable rates tied to Prime for more flexible funding. Line amounts start at $10,000. They also offer a Checking Line of Credit (CLOC) to protect against overdrafts, with assigned limits of $500, $1,000 or $5,000, and an APR of 17.90 percent.

For equipment and vehicle purchases, NFCU offers Secured Term Loans. These have a minimum loan amount of $10,000 and up to 75 percent loan-to-value ratio, depending on the type of equipment. Their Business Vehicle Loans come with no fees or prepayment penalties, while Commercial Vehicle Loans have a minimum loan amount of $40,000. Most of these loans require a personal guarantee and credit check. Various fees may apply to different loan types, such as a $150 origination fee for Secured Term Loans and a $50 annual fee for the Checking Line of Credit.

Business Credit Card 

The Navy Federal GO BIZ Rewards credit card is a great financial tool for businesses. With a competitive 18 percent variable APR and no annual fee, it’s cost-effective for growing companies. The card’s reward structure is straightforward: earn one point for every dollar spent. There is no limit on how many points you can accumulate.

This card also helps you separate your business and personal expenses while simplifying expense tracking and management. It’s equipped with contactless technology for quick, secure transactions.

Available as either a Visa or Mastercard, the GO BIZ Rewards card comes with additional perks. These include fee-free foreign transactions and the ability to add multiple cardholders. Both versions include a zero-liability policy to protect you from unauthorized charges. The Visa option offers travel-related services and discounts, while the Mastercard version provides unique business benefits such as Cellular Wireless Telephone Protection and Mastercard ID Theft Protection. To qualify for this card, you need a year of individual membership with Navy Federal or at least two years of business operations.

Pros of Navy Federal Business Accounts

  • Diverse account options: Navy Federal offers a range of business checking and savings accounts tailored to different stages of business growth, from startups to mature businesses with high transaction volumes.
  • Low fees: Many business accounts, such as the basic Business Checking account, come with no monthly service fees. Those with fees, like the Business Plus and Premium Checking, offer reasonable rates compared to the benefits.
  • Competitive dividend rates: The Business Premium Checking account offers tiered interest rates up to 0.45%. Money Market Savings Accounts provide higher earnings potential than standard savings accounts.
  • Flexible lending solutions: Navy Federal provides a variety of loan options, including commercial real estate loans, business lines of credit and secured term loans, catering to different business needs.
  • Business credit card benefits: The GO BIZ Rewards credit card offers rewards on all purchases, no annual or foreign transaction fees, and additional benefits depending on whether you choose Visa or Mastercard.
  • 24/7 account servicing: Members have around-the-clock access to their accounts, along with support from small business professionals. This makes it convenient to manage finances.

Cons of Navy Federal Business Accounts

  • Transaction limits: Each checking account tier limits the number of free non-electronic transactions, and fees are charged for exceeding these limits. This may be a downside for businesses with high transaction volumes.
  • Eligibility requirements: Businesses must meet specific eligibility criteria to open business accounts or apply for the GO BIZ Rewards credit card. All owners must belong to NFCU, which may not be possible for some business owners.
  • Service fees for some accounts: While the basic Business Checking account has no monthly fee, the Business Plus and Business Premium Checking accounts come with monthly service fees unless certain conditions are met. This might be a drawback for businesses looking to minimize costs.
  • Minimum balance requirements: Savings accounts like the Money Market and Jumbo Money Market require minimum balances ($2,500 and $100,000, respectively) to earn dividends. This might not be feasible for small businesses.
  • Overdraft fees: Navy Federal charges $20 for every overdraft. Overdraft fees are not charged for transactions of $5 or less. In contrast, North One does not charge overdraft fees, which may be useful to business owners who wish to avoid excess fees.

North One: An alternative to traditional business accounts

If Navy Federal business accounts aren’t right for you, there’s another option. North One is a digital-first financial institution tailored for small businesses and entrepreneurs. It offers a business checking account that combines modern technology with essential banking features. 

North One’s business checking account boasts several standout features. There are no monthly fees, allowing businesses to retain more of their earnings. The account offers high transfer limits. It integrates smoothly with popular business management tools like QuickBooks, Gusto and Stripe, streamlining accounting, payroll and payment processing. Users can create multiple sub-accounts for various purposes such as savings, taxes or project funds. The account is accessible through a user-friendly app and online platform for on-the-go management.

Compared to traditional banking options, North One offers several advantages. Its fee structure is more budget-friendly, eschewing monthly fees and minimum balance requirements common in traditional banks. The integration capabilities with modern business tools provide a level of convenience that many traditional banks lack. While North One doesn’t have physical branches, the digital-only approach caters to tech-savvy businesses. Plus, the mobile and online banking features offer a level of flexibility and accessibility that can surpass the limitations of traditional banking hours and locations.

Give Your Business the Financial Support it Deserves

Navy Federal’s robust features are great for small and growing businesses, but the eligibility requirements can be a barrier to some owners. On the other hand, North One offers robust features and low fees—and the membership requirements are far more relaxed than NFCU. Whether you choose North One, Navy Federal or another bank’s business accounts, exploring your options is the key to finding the right bank for you and your burgeoning business.