How to Choose the Best Bank Account for Business

One of the first things every business owner should do is to open a corporate bank account. This type of account makes transacting with customers and fellow businesses easier. It also makes your company look professional and respectable.

There are important things to consider when choosing a corporate banking provider. They include

Fees

The fee is the first consideration for business accounts. Different financial institutions charge different fees, including:

• Fees for using an automated teller machine (ATM)
• Deposit and withdrawal fees
• Management fees paid monthly or annually
• Inactive account fees
• Credit and debit card processing fees

The good thing is that banks usually state their fees clearly to prospective customers. Read the statements thoroughly and ensure you can afford the fees before proceeding. Failure to do that will cause problems in the long run.

Minimum Deposit

Some banks require a minimum deposit to open a business account. Some also require a minimum balance after opening the account. Read the terms and conditions to confirm that you can meet these deposit requirements. Failure to do so may result in higher fees and penalties.

Interest Rates

Financial institutions offer interest on money that businesses deposit. You can shop around for the bank with the best interest rates; expect between 1% and 5% for most accounts. A healthy interest rate allows you to grow your cash reserves.

Loan Process

You may need loans to expand your business at some point, and banks are one of the easiest sources of such loans. Before opening an account with any financial institution, you should learn about their loan application process. What are their revenue and capital requirements? What documents do they need? What interest rate do they lend at? Having this information at your fingertips will serve you well if you want to apply for a loan later.

Customer Support

Problems can arise anytime, and you’ll need external support to help you solve the problem. Your financial institution should provide adequate support resources to customers. You should be able to contact a human support representative anytime you need help. Check reviews to see if existing customers speak well about the bank’s support system.

Transaction Limits

Some banks limit the volume of customer transactions for a specific period. For example, you can have daily or monthly withdrawal or deposit limits. You might be limited on how many checks you can write each month. Ensure you read your banking provider’s fine print and note such limitations. You don’t want to get stranded after opening an account because you didn’t know about transaction limits.

Digital Banking

Banking has largely become digital. Any banking institution that doesn’t offer a mobile or web-based application nowadays is at a major disadvantage. Ensure your bank offers digital banking services to make it easy to transact. This way, you don’t need to visit the branch physically to deposit or withdraw money. You can even sign up for the account entirely online.

Software Integration

Business bank accounts often have integrations with third-party software to help customers. For example, you can integrate your account with your bookkeeping software, and it’ll automatically record and categorize your transactions. Similarly, you can integrate it with your tax preparation software, which helps you create tax reports. Check what software integrations your bank offers before signing up. 

Conclusion

A corporate bank account makes your business look professional and gives you perks such as higher interest rates on savings and access to loans at healthy interest rates. We have explained the main factors to consider to help you choose the best business bank account.