- Business and Employment
Small Business Checking Account
Small Business Checking Account
A small business checking account is a necessity when it comes to managing finances. Finding the best bank account for your company can also prove to be a difficult task when financial institutions differ greatly from one another. Some may tack on fees for just using their services per month while some may hit business owners with a fee for dipping below a minimum balance. When obtaining a checking account for your small business, you will want to do some research to save you from the hassle of having to switch later on if you become unhappy with your bank. So what are the ideal things to look for when choosing a small business checking account service from a bank? Here are some components to look for before you commit yourself to a any financial institution.
Did you know that a lot of banks will run promotions to gain customers? Keep that in mind when you shop for a small business checking account. Read the fine print carefully in the terms and conditions if you find a great offer.
Components to Look for When Opening a Small Business Checking Account
Banks vary from one another when it comes to services offered or fees burdened to a small business owner. One of the key components to look for is a “no account maintenance fee.” When shopping between banks, you want an account that will not charge you this cost. A bank account maintenance fee is simply a way for banks to earn extra money on a monthly basis. According to Money-Rates.com, the average fee paid for such a charge averages $6.63 per month for an account holder, which then comes out to almost $80.00 per year. This additional fee can really add a toll to an individual when he or she is just starting out with a new business. However, be aware that with tough economic times, it may become impossible to find a financial institution that will offer this perk. If that happens to be the case, shop around and try to find a bank that offers the lowest fees.
Another component to look for is a no minimum or a low balance that you are comfortable with or able to obtain. Some banks may charge fees if the account doesn’t carry a certain amount of funds at all times. Read over the fine print carefully or ask a bank representative if a small business account must maintain a certain amount of funds before you open financial credit with them.
Ask what the maximum number of free written checks is allowed. Some financial institutions may have a cap that only allows around 200 written checks allowed before fees are added for additional ones during a monthly period. If this happens to be the case, insure that you know what additional charges will be added if you go over the cap. The same concept goes with deposits. Some financial institutions may charge a fee if you go over a certain number of deposits in a month. Shop around until you find a financial institute that suits your small business needs for a checking account if you anticipate going over caps for deposits and withdrawals.
Perks for a Small Business Checking Account
Some financial institutions may offer perks for having a small business checking account with them. Look for banks that offer great fraud protection, such as 100 percent. With the rise in identity theft and similar crimes, you want to insure that if an event should happen that your checking account is protected.
If you anticipate that you would also like to open a credit card for your small business in addition to a checking account, then compare banks that offer rewards. Some banks may offer frequent flier miles and other rewards for using their card. Consider using the card and paying off the entire balance at the end of the month to reap the rewards if you qualify for credit.
Additional Things to Beware of for Your Small Business Checking Account
1). High ATM fees
2). Mandatory additional bank relationships that are required.
3). Fees for monthly statements – paper and electronic
Additional Business Help
Some Banks that Cater for a Small Business Checking Account:
TCF Bank: tcf.com
Bank of America: BankofAmerica.com
Wells Fargo: WellsFargo.com
Citizens Bank: Citizensbank.com
Capital One: CapitalOne.com
Wachovia (Small Business): Wachovia.com
Key Bank: Key.com
ING Direct: www.home.ingdirect.com
Swift Financial: SwiftFinancial.com
*Check out BankFox.com to compare financial institutions and promotions.