Which Bank Account is Best for Youth Sports Teams?
In researching the best way to set up a team bank account for a youth sports team, we spoke to several banks and found out which accounts each bank offers to teams, as well as the terms and conditions of those accounts.
The relationship between sports teams and bank accounts is not an ideal one, as many of the fees require monthly balances or transactions throughout the entire year, while most sports teams operate on a seasonal basis.
With that said, here are the pros and cons of each of the four banks we talked to: Bank of America, US Bank, Wells Fargo, and Citibank. Keep in mind, your mileage may vary and banks change their pricing all the time.
Bank Of America
Bank of America offers the “Business Fundamentals” account to youth sports teams looking to set up a bank account in the team’s name. The team will be listed as an associated unincorporated non-business. Here are the pros and cons of this account:
Multiple people can sign for the account
Debit/credit card available (but separate application)
$100 opening deposit
Monthly banking fee - Differs from state to state, but expect around $15 if requirements to waive fee aren’t met
How to Get Fees Waived:
To waive the monthly banking fee, the account must meet one of the following requirements:
Minimum daily balance of $3,000 during the month
Average daily balance of $5,000 during the month
If you have an organization with multiple accounts with Bank of America (perhaps one for each team), maintain a minimum daily balance of $15,000 during the month
Spend at least $250 on the team debit or credit card
With online banking, multiple signers, and the ability to apply for a team debit or credit card, Bank of America’s “Business Fundamentals” account can be a good option for youth sports teams. However, it can be difficult for teams to meet the requirements to waive the monthly banking fee, especially when outside of their season.
US Bank offers the “US Bank Silver Business Package” to clubs and teams with no monthly charge. While the account does have a few restrictions, no monthly management fee makes this an enticing option for youth sports teams.
No monthly fees
Team Debit Card
No minimum balance required
$100 opening deposit
Only 30 deposits per month allowed
Only one owner and one signer with limited access allowed on account
This offering from US Bank is enticing for teams who want a basic bank account with no fees. However, larger organizations may run into an issue with only 30 deposits allowed per month if you’re collecting a lot of player dues by check. Finally, it’s unfortunate that the account only allows one owner and one signer, as this limited access does not make easy the financial transparency and flexibility that many teams strive for.
Wells Fargo offers two options for your youth sports banking needs. First, their “Simple Business Checking” account, and secondly, their “Business Choice Checking” account. The two accounts differ in their fees and restrictions, but you can upgrade or downgrade if you realize the other account may better suit your team’s needs.
Minimum deposit is just $25
Monthly management fee is waived for the first two months
Team Debit Card
Easy to switch between Simple Business & Business Choice account
Monthly banking fee - $10/month for Simple Business, $14/month for Business Choice
Limit on transactions - 50 transactions/month for Simple Business, 200 transactions/month for Business Choice
$0.50 per transaction after this transaction limit is met
Limit on cash deposits
$3,000 in cash deposits/month for Simple Business, $7,500 in cash deposits/month for Business Choice
$0.30 per $100 cash deposited after deposit limit is met
Ways to Waive Monthly Banking Fee
Use business debit card at least 10 times/month
Maintain a $500 average ledger balance for the Simple Business account; maintain a $7,500 average ledger balance for the Business Choice account
Wells Fargo’s offerings make it easy for a youth sports team or organization to get up and going with a team bank account without many up-front costs. The accounts do come with a monthly fee, but the requirements to waive these fees are relatively easy to achieve compared to some other banks. Finally, keep in mind that there are transaction limits, so you may have to monitor how often your account is being used each month.
Citibank offers the Small Business Streamlined Checking account to youth sports organizations looking to open an account. This account offers a lot of transparency as it allows many different people in the organization to have access to the account. However, Citibank does not operate in all states, so you have to make sure there is a branch near you.
No initial deposit
Multiple signers on the account (up to 99)
Non-signers can have online access
Monthly banking fee - approximately $17
Transaction limit - 250/month
Difficult to waive monthly banking fee
How to Waive Monthly Banking Fee:
Must have average daily ledger balance of at least $5,000
While the transparency of the account is attractive, the limited locations and monthly banking fee can make the Streamlined Checking account a tough sell for many youth sports teams. However, if you’re in an area where Citibank does business and maintain a high monthly balance, Citibank may be worth a look.
How Groundwork Integrates with Team Bank Accounts
With Groundwork and a team bank account, you can say goodbye to the days of collecting money through check and cash.
Groundwork makes it easy to accept team payments online, and deposits them into your bank account automatically.
Interested in hearing more about Groundwork? Head over to our full website to learn more and/or schedule a demo.