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Bluevine vs. Kabbage Business Checking 2022: What’s Best?

Bluevine and Kabbage are excellent options for digital-only business audit accounts. Both offer interest-bearing controls, allow cash deposits for a

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Bluevine and Kabbage are excellent options for digital-only business audit accounts. Both offer interest-bearing controls, allow cash deposits for a fee, have reserve accounts that you can use for asset separation, and provide fee-free setup and maintenance. In addition, both banks offer an outstanding line of credit to eligible customers.

However, where there are differences, Bluevine has the lead. It has a higher annual percentage return (APY), better software integration, a larger fee-free ATM network and less common fees.

Here is a summary of what each provider is best for:

  • Bluevine*: Best for businesses that want a free, interest-bearing, digital check-only account or a company that also needs a credit line product
  • Kool*: Businesses with an existing relationship with American Express or Kabbage looking for an interest-bearing, digital-only checking account

* Providers are financial technology (fintech) platforms backed by and Federal Deposit Insurance Corp. (FDIC) secured by a supporting banking partnership (Coastal Community Bank for Bluevine and Green Dot Bank for Kabbage).

Bluevine vs Kabbage quick comparison

* Providers are fintech platforms backed by a supporting banking partnership and insured by FDIC (Coastal Community Bank for Bluevine and Green Dot Bank for Kabbage).

When to use each

Bluevine

You should choose Bluevine Business Control over Kabbage in the following scenarios:

  • Your company wants to earn a higher interest rate on its checking account and meets one of Bluevine’s two requirements (discussed below) to earn interest.
  • You need a line of credit. Bluevine is our pick for the best small business credit line.
  • You can restrict ATM withdrawals to the MoneyPass network, where it is free, and you can restrict cash deposits due to the fees involved.

Kool

You should choose Kabbage Business Control over Bluevine in the following scenarios:

  • You have an existing relationship with American Express or Kabbage and are looking for small business checks in your Kabbage account.
  • You need a business credit line or a billing and payment service in addition to a checking account, as Kabbage has both lending and payment services.
  • You regularly use off-network ATMs, as Kabbage does not charge a fee for off-network ATM use. You will probably pay a third party ATM operator fee.

When to use an alternative

  • If you regularly deposit cash into your account or need a full service bank, you may want to consider a bank with a physical location, such as Bank of America, Chase or US Bank.
  • If you make regular ATM withdrawals but still want a free digital check account, consider Novo. It pays back all ATM fees at the end of the month.
  • If your company wants to keep reserves in a savings or a deposit account (CD), you can consider Live Oak Bank. It offers savings, CDs and other lending products such as commercial real estate, Small Business Administration (SBA) and loans from the United States Department of Agriculture (USDA).

Bluevine vs Kabbage Business Check Account

Bluevine and Kabbage offer only one type of small business checking account. Both are digital accounts only with no setup and maintenance fees or an unlimited amount of typical daily transactions.

None of the companies require a minimum opening deposit or minimum balance and levies for cash deposits. However, you must deposit cash through Green Dot retail sites, which cost $ 4.95 per transaction.

Bluevine provides two free checkbook orders per year, while Kabbage charges for checks. You can order 100 custom checks for $ 20 or 250 business size checks for $ 125.

Bluevine vs Kabbage Account Overview

The biggest advantage that Bluevine has is its interest-bearing account. You can earn 1.5% APY on balances up to $ 100,000 if you meet one of two qualifying criteria:

  1. Spend $ 500 or more per month with Bluevine Business Debit Mastercard issued by Coastal Community Bank.
  2. Receive $ 2,500 per month in customer payments to your account via ACH, bank transfer, mobile check deposit, or directly from merchant payment processing provider.

While Kabbage only offers an APY of 1.1%, the company does not list any qualifying criteria to earn interest in your checking account. The $ 100,000 limit includes the total money that is combined in your master account and all reserve accounts.

Another great benefit for Bluevine is the available software integrations. It allows you to connect with accounting software like QuickBooks and Xero and a long list of business payment software. Kabbage currently has no accounting software integrations and only lists Venmo on its payment integrations website, although more payment integrations through Kabbage Payments will be available to qualifying businesses.

While Kabbage has a smaller fee-free ATM network than Bluevine, Kabbage does not charge for out-of-network ATM withdrawals. The only fees will be from third party ATM operators. Bluevine charges $ 2.50 per out-of-network ATM withdrawal, plus third-party fees.

Both Bluevine and Kabbage each offer five reserve accounts, allowing you to set aside funds earmarked for tax, profit, payroll and other expenses.

Bluevine vs Kabbage account fees

Because Bluevine and Kabbage use Green Dot retail locations for cash deposits, the costs associated with both accounts are almost identical. Kabbage lists a $ 3 per transaction fee for cash withdrawals. Otherwise, there are no monthly or transaction fees at any of the companies.

Bluevine vs Kabbage Account Example Scenario

*The average ATM surcharge of the ATM owner in 2021 was $ 3.08, per Bankrate’s 2021 checking account and ATM fee study.

Aside from Kabbage’s ordering checks and Bluevine’s out-of-network ATM fees, the typical monthly fees for both accounts are identical.

If your company has a large number of cash deposits per month, you should choose a provider that offers free cash deposits. You may want to consider a small business check account with a physical bank location.

If you regularly use ATMs outside the network, consider a company that reimburses ATM fees monthly like Novo. Check out our Novo Business Control overview.

Bottom Line

When comparing Kabbage vs Bluevine business controls, there are only a few differences. Bluevine has an edge over Kabbage thanks to a higher APY, better software integration, a larger free ATM network and fewer additional fees.

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