Choosing a business bank account can be more difficult than choosing a personal bank account. Business owners need to look at both the top online banks and traditional banks to see who offers the best bank accounts with more options. There are a few quick guidelines business owners should keep in mind when choosing a bank account.
Interest Rates
As a business owner, you will want your business account to yield high interest rates. Large sums of money will likely be in your business checking account. An account with a high interest rate will be making you a little bit of extra money each month. Plus, these premium accounts often come with a variety of other perks – no additional fees, advanced options, and many more. There is no reason for you to pass up on making some extra money for free. Even a low interest rate is better than no interest rate. If absolutely nothing else, make sure the bank is not charging you interest or a monthly fee.
Card Fees
You will likely use your business card to pay for a variety of transactions. Due to this fact, you need to make sure that your card does not have any unneccessary fees. You should never have a transaction fee on your business card. You should also try to use a debit card rather than a credit card whenever possible, to avoid paying interest. If you have the option of getting a free business rewards debit card, take it. The rewards are a great extra perk for you and your business.
ATM Fees
It honestly does not matter whether or not your bank charges you ATM fees, as a business user you should try to avoid using the ATM. When paying for things for your business, you should try to avoid paying in cash, if at all possible. It is easier to keep track of your transactions for tax purposes if you always use checks or cards.
The Bottom Line
When it comes to business accounts, the bottom line is you want to try to earn money off of interest, and avoid paying any money for your account, if possible. This is a simple solution to any business banking ordeals.
That’s a good list!
One other things that helps is to consider geography (how close branches are, how often you’ll be at the branch for coin, cash, etc.) as well as how quickly a specific bank will be able to clear a cheque for you. Sometimes using a more popular bank will mean that they can clear cheques the same day instead of waiting 5-10 days for your money to become available.