How to Choose The Best Business Bank Account? Tips
23 November 2022
Getting a business bank account can be a tough task. It is important to choose a bank that will make your life easier. There are a lot of service providers and all of them have different conditions. In this guide, we will give you seven criteria to consider before opening a bank account.
Criteria for opening a bank account
You should answer a simple question: “How important is the bank location for me?”. If you are looking for a bank that has a lot of ATMs or branches, and you need in-person support, you should choose traditional banking. If you don’t need physical locations to visit and in-person customer support, then think about online banking.
Moreover, you should think about such questions as:
How close is your bank to your home or office?
How often do you need to withdraw cash for your business?
How often will you make deposits and get certified checks?
How often do you travel and are there any ATMs you can use without fees?
Most banks have quite a lot of fees, and the information about them can be vague. Banks charge such fees as service fees, monthly maintenance fees, ATM fees, overdraft fees, withdrawal/deposit fees, wire transfer fees and many more. Most of the fees can be avoided by opening an online business bank account. But as mentioned before, if you need an in-person banking service, online banking is not for you.
Most of the banks provide basic banking services that include checking and saving accounts, credit & debit cards, checks & checkbooks, deposit-only cards, online business banking, and employee checking accounts. To choose the optimal bank, find out all the details such as fees and requirements. Each bank offers different fees and requirements, so compare them first.
You may need other banking services, so find out if the bank has them. For example, you may need the possibility to open a line of credit, and it would be unpleasant to know that the bank you’ve chosen can’t give you a loan.
Probably, you would use your bank account with other business tools. Integration of your bank with accounting, bookkeeping and payroll services will save you time, and it is a good thing for a business owner.
Thus, before opening a bank account, find out if it works with your third-party business tools. For example, if you use QuickBooks, you would rather prefer a bank account that can integrate with your accounting software, so you can process your routine business operations.
Customer service is an important part of banking services. In evaluating customer services of the bank you should think about these questions:
Is there a personal manager?
Is the bank support available 24/7?
What time does it take to get a reply from the bank?
What are the working hours of the bank?
Where the ATMs are located and how many of them are in your area?
You would need a high-yield saving account if you are planning to open a business savings account. So you need to find a bank with the best rates that will allow your savings to grow.
You should consider online banks as they offer best interest rates with low monthly fees.
Perks and introductory offers
Many banks offer special bonuses to attract new customers. For example, some banks can offer a one-time cash bonus, if you open a business checking account. Other banks can offer lower fees to new accounts or bonuses for maintaining the balance for a couple of months.
Choosing a bank where you want to open a bank account should be based on its reliability, quality of service and products, and fees for basic services.
Also, pay attention to the location, interest rates, perks, customer services, integrations and available services.
The best way to choose a bank is to calculate the cost of services and consider the criteria we’ve mentioned.