Last year Bank of Internet USA changed its name to BofI Federal Bank. Bank of Internet USA still exists, but it's a division under BofI Federal. UFB Direct is another division under BofI Federal. Both Bank of Internet USA and UFB Direct offers personal accounts, but no business accounts. I just noticed business accounts are now being offered directly from BofI Federal's website, and the rates are very competitive.
In this interest rate environment, business accounts have low rates just like personal accounts. There was a small improvement for businesses last year due to a regulation change. As I described in my July 2011 post, a federal prohibition against the payment of interest on business checking accounts was repealed. As a result, corporations and partnerships can now have interest-bearing checking accounts.
BofI Federal Business Checking
If you have a business and you have been keeping your money in a megabank checking account earning little or no interest, you might want to take a look at BofI Federal Bank. The bank offers two interest-bearing business checking accounts that both pay 1.01% APY. There's also a business money market account that pays 1.15% APY. These rates are listed in BofI Federal's business banking rates page as of 5/22/2012.
BofI Federal has a useful table comparing its checking accounts. The Business Interest Checking account has no monthly service charge and no transaction fee for the first 100 transactions per month. The Premier Business Checking has a $15/month service charge, but the first 200 transactions per month have no fee. Both require a minimum initial deposit of $1,000.
I don't see any mention about how long these competitive rates may last. Those who opened the UFB Direct Airline Rewards Savings Accounts last year due to the high yield remember that the yield plummeted after about 6 months.
BofI Federal Bank Overview
BofI Federal Bank (formerly Bank of Internet USA) is one of the oldest pure internet banks. Since it was established in 2000, its financials have remained strong. Currently, it has an overall health score at DepositAccounts.com of 4 stars (out of 5) with a Texas Ratio of 8.51% (above average) based on December 2011 data. Please refer to our financial overview of BofI Federal Bank for more details. The bank has been a FDIC member since 2000 (FDIC Certificate # 35546).
Other Business Interest Checking Options
If you want a rate guarantee, EverBank is offering a small business checking account with the same rate guarantee as its personal checking. This guarantees 1.05% for 6 months for balances up to $100,000 after account opening (as of 5/22/2012).
Capital One Bank is still offering a promotional rate on its Clear Interest Business account in states where they have branches. There's a 12-month rate guarantee, but there's a transaction requirement to qualify for the promo rate (see review).
To find other business interest checking accounts, please refer to our business checking account table.