One of the hardest decisions that a business owner needs to make is choosing a good business bank account. As there are plenty of options to choose from, it can feel overwhelming. Despite the abundance of choices, there is a good fit for you and your organization. We’ve designed this article to help you make the right decision by giving you a rundown of key features or attributes to look for. 

You want your banking to go smoothly from day to day. Choose a bank that offers the services you need and the support you deserve. Let’s dive in. 

1. Size Matters

When choosing a bank account, size is something that you cannot afford to overlook. You should understand that big does not always mean better. Also, you have to determine your business needs and whether you prefer a large national bank or a small community bank.

What makes big banks a great choice is the fact that they have lots of offerings, various branches, and more resources available for customers. Therefore, you will benefit from a variety of credit offerings as well as other perks such as lines of credit.

On the other hand, a smaller community bank caters to local market conditions and will be willing to open an account for you based on your overall profile instead of just hard numbers such as your credit score. This also means that you will have an easier time obtaining a line of credit or loan. Moreover, a smaller bank might even charge lower fees or provide a better rate.

At the end of the day, it all comes down to establishing a personal relationship with the bank. Therefore, you need to find out more about the type of professionals you’ll be working with. This is why it is a good idea to meet with representatives from both small and large banks to learn more about each one. 

2. Account Features and Services

Next, you need to consider the available account features and services. It is important that you compare the business checking accounts to find out which services are included and which ones you’ll need to add. Some of the features that you should look for include:

• Business debit card access
• Safe deposit boxes
• Bill payment services
• Payment Processing
• Overdraft protection
• Domestic and International wire transfer services
• Low monthly service fees
• Online Payments
• Direct Deposit
• Fee-Free ATM access
• Check-writing services
• Online banking services and mobile banking apps
• Treasury Management (cash management services)
• Money market accounts
• Mobile check deposit
• High level of security
• Insurance
• Business Loans
• Reasonable transaction fees
• Business credit cards
• Convenient automated clearing house access (ACH)
• and more

In addition to the above, you also have to consider other perks. For instance, if you require assistance with cash flow management, it is important that you open a business checking account with a bank that provides this service. You might even want to create another business account for savings or to take advantage of certain investment instruments offered by the bank, such as certificates of deposit and other investments. 

Now, it is best that you have all business accounts in the same place to simplify the management of your business finances. It makes sense to go through the full range of banking services offered by each bank or credit union.

3. Interest Rates for Deposit Accounts

Are you thinking of opening a business savings account or an interest-bearing business checking account? If so, research the interest rates of each bank. You need to make sure you choose a bank that offers the best rate available. It’s one more way to put your money to work for you.

4. Service Fees

Before you choose a business bank account, you need to take a close look at the service fees that each bank charges. There are different fees associated with each service including:

• Overdraft fees
• Wire transfer fees
• Minimum balance fees attached to minimum balance requirements
• Monthly maintenance fees
• ATM fees and surcharges

When you compare brick-and-mortar banks with online banks, you realize that the latter charges fewer fees. However, you also have to consider accessibility tomoney, as online only banks can sometimes make it difficult for you to withdraw cash.

5. ATM Access and Branch Banking

To make sure that you open the best business account, you need to consider ATM access and branch banking. Having an account with a bank that has various branches will put you at ease, as you’ll have an easier time accessing on-site services with so many locations around.

The convenience of a physical branch is something that you simply can’t ignore. It will allow you to make daily deposits, speak with service agents face to face, and much more. You might want to visit an ATM to withdraw money as well.

It is vital that you check each bank’s ATM network. If you fail to do so, you might have to pay hefty ATM surcharges, which are especially troublesome for small and new business owners who need every penny at their disposal. 

6. Transaction Limits

Most business bank accounts have a transaction limit. It is important that you know your transaction limits are to ensure that you choose an account that meets your requirements and helps you keep your business moving along. 

You’ll want a business checking account that allows frequent electronic transfers, bill payments, withdrawals, and deposits. The last thing you want is to deal with limitations on your business checking account when you’re trying to run your business.

For instance, the bank might allow a limited number of checks to be written during a single month. Similarly, if you need to transfer funds electronically, it might have restrictions on the amount of money that can be paid through your bank account.

It is important that you also keep in mind that there might be limitations on the number of transactions or cash deposit limits for each month. There might be a fee if you make additional transactions. If you can, choose a business bank account that allows unlimited transactions. Otherwise, you should calculate the fees and determine which bank is the most affordable.

7. Introductory Bonus Offers

Another frequent perk of certain banks is their introductory bonus offers. Many banks actually provide such offers to attract new customers. For instance, your business might be eligible for a cash bonus when it meets certain deposit requirements. 

8. Access to Favorable Business Loans

In addition to making use of a checking, savings, or money market account, it’s a good idea to choose a bank or credit union that offers low rates, great terms, several options, and strong support on their business loans. 

Business owners often need to access more funding later on and going through your own bank can be very beneficial since you already have an established trust and relationship built. 

9. Ease of Integration

Lastly, you should consider ease of integration. If your business uses an accounting software program to manage finances, it might be a good idea to choose a bank account that comes with integration capabilities.

This will make your life a whole lot easier. You should compare each bank’s capabilities when syncing a business bank account. It is also important that you choose a bank which provides additional integrations like tax preparation software and online payroll software.

In Closing

Every business needs a bank account in order to operate successfully. But this doesn’t mean that you should simply choose the first one you think of. Compare your options. Research all their account offerings, range of features, fees, access, and customer service. 

No bank is perfect but there will likely be a few that meet most or even all of your needs, and some that may surprise you with some extras. When you build a solid relationship with a trusted financial institution, the benefits can be numerous and enable you to expand your business as time goes on. 

Sound Accounts helps business owners increase efficiency and make the most of their money with detailed, attentive bookkeeping support and valuable advice. Reach out today to learn more and find out how you can qualify for 6 months of free QuickBooks. 

To learn more about business banking, check out our frequently asked questions below. 

FAQ

Which bank Is the best for business bank accounts?

To help you get an idea of the best banks for opening an account, we have mentioned banks that offer a range of services.

Chase is a trusted name and continues to offer a lot to their customers.

If you only require online checking, Axos Bank is a good choice.

For more branches, you might want to consider Wells Fargo.

To utilize business analytics, you can opt for M&T Bank.

US bank is the best option if you are searching for a brick-and-mortar bank with a solid reputation

How much money should a small business keep in the bank?

If you are planning on opening a small business bank account, you need to ensure that your bank account has enough cash for 3 to 6 months of business transactions. Otherwise, you risk struggling to pay for your ongoing operating expenses. 

Should I go with a national bank or a local one?

You are the only person who can answer this question. Visit a few of each to see what seems to fit better. If you’re more interested in a national or international name, a bank with greater assets, and lots of branches and ATMs, a big bank might be your choice. 

However, if you want a more personal touch it comes to customer service, sometimes better loan rates and more lenient terms, along with an understanding of your community and local market, a local bank or credit union is probably your best partner.