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How do I Choose the Best Business Checking Account?

Article Details
  • Written By: Laura M. Sands
  • Edited By: Heather Bailey
  • Last Modified Date: 11 November 2016
  • Copyright Protected:
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    Conjecture Corporation
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The best business checking account is the one that will fit your needs while keeping fees to a minimum and that offers you easy access to useful account management tools. When choosing to open a checking account, be certain to take all of these into consideration and look for a bank that will offer a few perks in exchange for your business. In order to choose the best banking option, you will, therefore, have to be clear about what it is you need and desire from a bank and then do a little homework to compare the benefits and costs associated with various business checking account options.

In order to clarify your needs, first consider how much money you plan to deposit into your account monthly and what kind of balance you intend to maintain. Some banks require you to maintain a minimum balance or expect you to deposit a certain amount to avoid banking fees. Larger businesses can sometimes afford to bypass these concerns, but if you are operating a small business, you need to be clear on these matters from the moment you begin to consider opening a small business checking account.

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Begin your bank comparisons with the bank where your personal checking account or your student checking account is located. In doing so, you may find that unique incentives are offered to persuade you to open a business checking account. Banking at a single location is convenient and helps strengthen the relationship you and your bank share. Only select your current bank, however, if it truly offers the best business banking options.

As you are comparing options, pay attention to the different business checking account offers extended to new customers. For instance, some banks offer travel miles for using your debit card a certain number of times in a statement cycle or offer reduced charges for wire transfers. Different banks have different offers, but be sure to factor these into your consideration process, particularly if the perks will be of use to you personally or to your business.

Some banks charge fees for deposits or for deposits that exceed a particular dollar amount. Other charges may include a fee for phoning customer service or for using outside automated teller machines. Be sure to inquire about all of the possible fees you may be assessed while shopping for a new account. Narrow your prospects down by focusing on banks offering fewer fees for services provided.

Most banks offer an Internet banking option for personal accounts. It is important, however, to find out if this convenience also comes standard with business accounts. Also, find out if phone support is available to you as a business customer for any issues you may have after hours. While most business checking account customers are granted 24-hour customer service by phone, not all are and this may be a problem if you conduct business during non-traditional hours.

Some banks do not offer a business checking account that allows you to earn interest on your deposits, while others do if you maintain a minimum balance. When narrowing your options, be sure to find out if the banks you are considering do or do not offer this option. If you are considering opening a business checking account with a local independent bank or an online checking account, be sure that the bank is FDIC insured or insured by another appropriate agency if located outside of the United States.

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