Every successful company needs an equally successful bank that offers adequate financial support to ensure a steady foundation upon which that company can build. It is vital to have a well-suited business account tailored to a company's individual needs; this helps to keep business and private finances separate while minimizing incurred fees. There are many things to consider before becoming a business customer and finding the best business bank account can be difficult.
What to Consider?
Depending upon a company's size and profitability, requirements to attain and retain a business bank account vary across financial institutions. It is crucial to choose an account that suits your business and offers incentives pertinent to your business goals. Small businesses do well to begin with a free business account and upgrade to an account with a high interest yield and low fees once the business has established good earnings.
It's a good idea to make a list of your business goals and match these with the available financial institutions in your area to determine the best business bank account for your company. Don't be fooled by flashy gimmicks and up-front offers; these may appear glamorous on the surface but fail to serve all your business needs. Compare banks to determine basic costs and available features so that you are well prepared to ask questions specific to your situation.
Questions to Help Choose the Best Business Bank Account
1. Are free business accounts available in my area? If so, do the services provided and applicable fees mesh with my business plan and available revenue?
2. Are business debit cards available? Are business credit cards available? For each type of card, be sure to ask how many cards you are allowed to have and what are the transaction fees and limits for each.
3. Is there a limit on withdrawals or will the account be charged for each withdrawal after a preset limit?
4. If I cause an overdraft, am I required to cover the applicable charges? If so, how much are these fees?
5. Is there an option to freely move monies from one bank account to another? If so, what are the estimated delays before the transferred monies are made available?
6. Is there a savings account option that accrues interest?
7. Do physical banks have branches in my area? Does this bank offer on-line banking, telephone banking, and/or mobile banking options?
Once you've determined your company's goals, and depending upon your answers to these questions, finding the right financial institution with the best business bank account for company should be fairly uncomplicated.
Free Business Checking Accounts
The word free is subject to interpretation within the financial district. Most accounts are free up to a certain point; once preset limits are surpassed, banking fees begin to accrue. If you are considering a free business account, be sure to ask about limits on transaction volume, minimum balance requirements, and maintenance fees should these limits be exceeded.
The best business bank account for your company depends mainly upon its size and business objectives. Use these as a guide to determine which business account is right for you.
By Michelle G. Woods
Photography by Mellissa King