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Found Business Banking (2024): Is It Right For You?
Found Bank At A Glance
Found Bank is an online banking platform designed to cater to freelancers, small businesses, and self-employed individuals. It provides a range of services such as business checking accounts, direct deposits, and financial management tools.
Pros & Cons
Pros
- No Monthly Fees or Minimum Opening Deposit: Found Bank offers a cost-effective banking solution with no monthly service fees or minimum deposit requirements, making it accessible for small businesses and freelancers.
- Unlimited Fee-Free Transactions: Enjoy unlimited transactions with no overdraft fees and free incoming domestic wires, providing flexibility and cost savings.
- Early Direct Deposit: Benefit from early access to your funds with the early direct deposit feature, getting your money up to two days sooner.
- Flexible Spending: Offers flexible spending to cover card transactions that would overdraw from the primary balance, ensuring seamless transactions.
- Built-In Financial Tools: Found Bank includes free invoicing, bookkeeping, and tax-planning features, helping you manage your finances efficiently within a single platform.
- Seamless Integrations: The Found app integrates with popular business tools such as Stripe, Etsy, and PayPal, streamlining your financial management and making it easier to track and process transactions.
- Pockets System: Helps you sort your money into different categories, such as “Taxes” and “Savings,” making budgeting and financial planning easier.
Cons
- Limited Customer Service Times: Customer support is only available during business hours, which might not be convenient for all users, especially those working outside typical business hours.
- Online-Only: Found Bank operates entirely online with no physical branches, which may not suit those who prefer in-person banking.
- ATM Fees: While Found does not charge ATM fees, it does not prevent ATMs from charging their own fees, which can add up.
- Cash Deposit Limits: Cash deposits are limited to $2,000 per week and $4,000 per month, with a $2 service fee for each deposit. This can be restrictive for businesses handling large cash volumes.
- No Outgoing Wires or Check Payments: Found Bank does not support outgoing wire transfers or check payments, limiting payment options for some businesses.
- Interest Only with Paid Plan: To earn interest on your account balance, you must subscribe to Found Plus, which comes at a cost of nearly $20 per month or $150 per year.
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What is Found Bank?
Found Bank is a fintech company offering banking solutions for freelancers and small businesses. It provides essential banking services, including business checking accounts, debit cards, and financial technology tools. Found Bank partners with Piermont Bank to provide FDIC-insured accounts.
Found Bank Highlights
Built-In Invoicing and Bookkeeping Tools
Found’s free business checking account includes powerful invoicing and bookkeeping features designed to streamline your business operations:
- Unlimited Invoicing: Create, schedule, and send recurring invoices, customizable with your company logo and personal notes. Payments can be made via ACH, Venmo, PayPal, or Zelle. For card payments, integration with Stripe is available, although additional processing fees apply.
- Integrated Bookkeeping: Automatically categorize expenses using your Found business debit card, save and annotate receipts, and generate detailed reports based on account activity.
- Tax Management: Found offers automated tax planning tools that estimate taxes in real-time, set aside money for tax bills, and track deductible expenses. Found Plus subscribers can also pay quarterly estimated taxes directly from the app.
Business-Friendly Services
Found offers a suite of innovative financial tools tailored for small business owners and the self-employed:
- Pockets System: Automatically allocate funds into different categories like “Taxes” and “Savings,” simplifying budgeting and ensuring you’re prepared for quarterly tax payments.
- Tax Filing Assistance: For Found Plus members, the app provides free tax filing services, making it easier to manage one of the more stressful aspects of being self-employed
Found Bank Downsides
Does Found Bank Have Zelle?
As of March 2024, Found Bank does not partner with Zelle for sending or receiving payments. However, Found users can still send and receive payments directly from their Found account using alternative methods. Users can send payments to recipients using their phone number or email address. The recipient will receive a text message or email with instructions on how to claim the payment, which can then be deposited into a bank account or through payment apps like PayPal, Venmo, or Cash App. If the payment isn’t claimed within seven days, it will be returned to the sender. This flexibility ensures that Found users can still efficiently manage payments despite the lack of Zelle integration.
Subscription Required to Earn Interest
To earn interest on your Found account balance, you need to upgrade to Found Plus, which costs $19.99 per month or $149.99 per year. Found Plus offers a competitive 1.50% APY, but only on balances up to $20,000. The subscription costs can significantly reduce the interest earned:
- Annual Subscription: If you maintain a $20,000 balance for a year, you would earn $302 in interest at the current APY, but the subscription fees would cut that to $152 annually.
- Monthly Subscription: If you opt for the monthly subscription, the net interest earned would be reduced to $62.12 annually.
Found Bank Reddit Reviews
Based on discussions on Reddit, opinions about Found Bank are mixed. Here are some of the experiences shared by users:
Positive Experiences
Some users find Found Bank suitable for their needs, particularly appreciating the free version and its features.
Everthing-Jarrett: “I have the free version, and haven’t seen a need or benefit for the Plus/Paid version, though I suspect there’s those who would.”
Negative Experiences
However, many users have reported negative experiences with Found Bank, particularly regarding account security and customer support.
- One commenter mentioned their son’s account was frozen for almost 5 weeks due to exceeding the check limit, and there was no customer support available to resolve the issue.
- Another user had issues with receiving a new debit card from Found and found their support team’s suggestions unhelpful.
- There were multiple comments expressing frustration with frozen accounts and the lack of customer support from Found.
CincyRealtorChris: “I’ve used Found. They were ok for about 10 months. Someone hacked my account and sent themselves $500 through Cashapp. Found refused to cover the stolen funds. As the account was hacked, I tried numerous times to contact Found. Their customer support is non-existent. Only form of communication is via email. Highly recommend using anyone else.”
It’s important to note that individual experiences may vary, and it’s always a good idea to research and compare different banking options before making a decision.
Who is Found Bank For?
Found Bank is ideal for freelancers, small businesses, and self-employed individuals looking for a digital-first banking solution. With its no-fee structure and built-in tax management tools, it’s particularly suited for those who need a simple, cost-effective way to manage their finances.
How to Open a Found Business Bank Account
Eligibility Requirements
To open a Found business account, you need to run a U.S. business and have a valid federal employer identification number (EIN). You’ll need to provide the following details to open a Mercury business bank account:
Personal Details
- Date of birth
- Email address
- Home address
- Social Security number (SSN)
- Government-issued photo ID (passport or U.S. driver’s license)
Business Information
- Business name
- Entity type
- Physical address
- Phone number
- Annual revenue
- Industry
- EIN or tax ID
Required Documentation
- Business formation documents (specific to your entity type)
- EIN verification from the IRS
Steps to Open Your Account
- Submit Application: Visit the Found website and complete the online application form with your personal and business details.
- Verification: Found will review your application and verify the provided information.
- Approval: Once approved, you’ll be notified via email.
- Funding Your Account: After approval, you can fund your business account, send payments, and manage transactions.
- Download the Mobile App: Access your account through the Found mobile app and integrate with third-party business tools.
Initial deposit limits depend on business verification and transaction history. Currently, e-checks are not accepted; you can deposit checks through the “Add Funds” feature.
Alternatives to Found Bank
If you’re looking for other banking options, consider the following alternatives:
Mercury Bank
Mercury Bank is ideal for startups and tech companies, offering fee-free banking and advanced financial tools. It provides seamless integrations with popular business applications, supports multiple user accounts, and offers robust security features. Mercury Bank also includes an IO credit card with automatic 1.5% cash back on purchases, no annual fees, and a 23-day interest-free repayment period. For more details, check out our comprehensive Mercury Bank review.
Brex
Brex is a fintech company providing financial services tailored to startups, including corporate credit cards and cash management accounts. Brex stands out with its high credit limits, no personal guarantee requirement, and rewards program designed for business expenses like travel, software, and dining. Additionally, Brex offers financial tools such as expense management, budget tracking, and integrations with accounting software, making it a robust choice for growing businesses.
Novo Bank
Novo Bank is another online banking option known for quick deposits and withdrawals, though it has mixed reviews regarding customer support. Novo offers a fee-free business checking account with integrations for popular business tools like Slack, Stripe, QuickBooks, and more. While Novo provides useful features like free ACH transfers, invoicing, and reserves, some users have reported issues with customer support and account management. Nonetheless, it remains a viable option for small businesses seeking a flexible online banking solution.
Our Expert Takeaway
Found Bank offers a straightforward and user-friendly banking solution for freelancers and small businesses. With features like no fees, early direct deposit, and integrated tax management tools, it’s designed to simplify financial management for self-employed individuals. However, the lack of physical branches and limited customer support can be significant drawbacks. Additionally, while Found provides valuable tools, its limitations in earning interest without the paid version and issues with account security and support reported by some users may make it less appealing for some.
Pairing Found Bank with Kudos can enhance your banking experience. Kudos helps you earn rewards with the Found debit card at over 15,000 participating stores. As cash flow is crucial for any business, Kudos ensures that you’re maximizing value from your debit card and credit card rewards, turning everyday spending into significant rewards. Using Kudos alongside Found Bank can make managing your business finances even more rewarding and efficient.
If you’re looking for a more robust banking solution with advanced tools, consider alternatives like Mercury Bank. Mercury offers fee-free banking, advanced financial tools, and better customer support, making it a stronger option for growing businesses.
Found Bank FAQs
Is Found a Real Business Account?
Yes, Found offers a legitimate business account designed for freelancers and small businesses, with FDIC insurance through Piermont Bank.
How Does the Found App Work?
The Found app provides a user-friendly interface for managing your business finances, including expense tracking, tax management, and direct deposits.
Is Found Banking Good for an LLC?
Yes, Found Bank is suitable for LLCs, providing essential banking services and built-in bookkeeping tools.
What Bank Is the Found Card?
The Found debit card is issued by Piermont Bank, which provides FDIC insurance for your funds.
How Do I Cancel Found Membership?
You can cancel your Found membership by contacting their customer support through the app or website and following the provided instructions.
What Is the App Found?
The Found app is a financial management tool designed for freelancers and small businesses, offering banking services, expense tracking, and tax management.
Is Found Debit Card Legit?
Yes, the Found debit card is legitimate and issued by Piermont Bank, a member of the FDIC, ensuring your funds are protected.
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