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We're comparing banks for our small business checking, and noticing something counter-intuitive: the banks appear to have established a maximum for cash deposits.

For example, Wachovia offers Essential Business Checking, and makes this statement:

"No charge for up to $5,000 in cash deposits per month"

Why would they charge us if we deposited more than that...wouldn't that be a good thing?

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1 Answer

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Banks benefit from high average balance, not actual deposits. If you are taking money right out, it doesn't do them any good. Some banks will offset fees if average balance is above a certain amount.

From my experience you can negotiate a lot of these fees with a banker in person.

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