Nearside Review 2022 | Free business banking

For decades, individuals have had easy access to free checking accounts. But entrepreneurs have not been so lucky. Business checking accounts typically come with unreasonably high monthly fees, even though the account has no features other than those on personal accounts.

Nearside Banking is one of the first banks to change that landscape. The company offers entrepreneurs free online checks. Just about anyone is eligible to use these accounts for their business, their rental properties, or an afterthought. Here’s what you need to know about it.

Related: Check out the best business checking accounts here.

Free business checks. You don’t need to have a specific tax ID for your business to create an account. You must deposit cash and checks through Allpoint ATMs.

$40 Bonus on your first deposit

What is Nearside?

Nearside is a free business checking account. Nearside is not a bank, but offers banking services through LendingClub Bank, which is a member of the FDIC. The company was founded to democratize corporate banking, starting with corporate checking accounts (a notoriously cost-intensive business).

As a recently launched business, Nearside is encouraging new account holders with 20% cash back on your first deposit (up to $40) and 2.2% cash back on all debit purchases made in 2022.

What does it offer?

Nearside offers a free business checking account for business owners ranging from side hustlers to those with large payrolls. The account is especially useful for small business owners who don’t want to pay high monthly fees to separate their work finances from their home finances.

No monthly fees

Unlike most business checking accounts, Nearside charges no monthly fees and has no account minimums. The free account is ideal for side hustles and business owners who don’t want to waste money on useless fees.

No need to be included

Sole proprietors who use their Social Security number to file their taxes can still set up the Nearside account to accept payments and manage their finances. Nearside even supports sole proprietorships using a “doing business as” DBA.

Transfer money via Plaid

Nearside uses a third-party integration to link the Nearside account with other accounts. Plaid must support transfers between accounts. During testing, we were unable to initiate transfers from an external account to the Nearside account.

Access to AllPoint ATMs

Entrepreneurs can withdraw and deposit money through Allpoint ATMs. This network has more than 50,000 ATMs across the country, so account holders can rest assured that they can get cash when they need it.

Cashback Rewards Debit Card

The Nearside Debit Card offers cash back rewards for all debit card purchases. Users can regularly earn 1% on all debit purchases, but in 2022 users will earn 2.2% cashback.

cons

If you receive checks or cash as payment, you must deposit them at an Allpoint ATM. Business owners who are used to taking a photo to deposit money cannot accept this extra step.

Are there any costs?

Nearside Bank has no major fees. It does not require a monthly minimum. It doesn’t charge a monthly fee, and it doesn’t even charge for overdrafts. The only charges a user can incur are withdrawal fees at ATMs outside the Allpoint network. Nearside charges the user $1.00, plus it passes the off-network charges to the user.

It also charges a $25 stop payment fee if you ever need to cancel a payment.

How does Nearside compare?

Overall, the nearside bank account fee structure is incredible. Earning 2.2% cash back on debit purchases plus no monthly fees is a huge win for business owners. It is also convenient that merchants can deposit and withdraw money through the Allpoint network of ATMs.

However, during testing, the app seemed to have a few issues. During the test period, we were unable to transfer money from another account to the Nearside bank account. This could be due to an issue with Nearside’s money transfer partner, Plaid. Nevertheless, it made us nervous that the account might have similar issues in the future.

How do I open an account?

Opening an account is relatively easy. You will need your name, your company name, a physical address in the United States, and a tax ID (a Social Security number will work). You will also need some form of photo ID.

To open the account, download the Nearside app or navigate to the Nearside website and choose Apply Now. You create an account with an email address. Once your email address has been verified, you can add additional personal information and upload a photo of your photo ID.

At that point, your account is opened and you can start transferring money. Nearside will send you a Mastercard debit card.

Is it safe and secure?

Nearside is an internet bank that uses mobile forward security. It relies on fintech giant Plaid to facilitate money transfers between accounts, adding an element of security to all transactions.

The account is FDIC insured, so any money lost due to theft or hacking will be recovered. In addition, the precautions of Nearside include encryption and multi-factor authentication to keep user information safe. Every time a user logs in, they have to enter the username and password and enter a one-time code that is texted to them.

However, Nearside is an online bank and account holders can have their information stolen. Users should be familiar with this risk before using any online bank.

How do I contact Nearside?

For basic questions about the product, check out Nearside’s online FAQ portal. Account holders can also ask basic questions to a “virtual assistant” via an in-app chat feature. If these options do not work, users should contact customer service.

The best way to reach this group is by phone at 1-888-516-2369.

Is it worth it?

Overall, Nearside offers an excellent, low-cost account that is perfect for sideloaders and small business owners. The app has an excellent user interface and made a lot of sense. Added to incentives like the 20% match on the first deposit (up to $40) and the 2.2% cashback on all debit purchases, it’s easy to make a case for this account.

However, the downside of initiating wire transfers from the account can be a major problem for some users. Calling customer service to solve a problem is not the way many busy business owners spend their time. Over time, we suspect this issue will be resolved, but it is currently looming as a major drawback of the account.

The other problem at the moment is the dependency on Allpoint ATMs. Business owners who receive cash or checks must deposit them through the ATM to see the funds in their accounts. This can add an extra unnecessary task to the already busy day of a freelancer.

Nearby features

Web/Desktop Account Access

32551 (via LendingClub Bank)