Just like choosing a personal checking account, you should select a business checking account, or a series of accounts, that match your needs. Start by considering how you use your business checking account:
- How many checks do you write each month?
- How many and what types of deposits do you typically make?
- What is the amount of your average balance?
- Do you prefer mobile and online banking? Or do you want to visit a branch?
Most banks offer a basic business checking account with very low or no fees, however, institutions often restrict the number of checks that can be written on a low or no fee account. For instance, an account with a very low balance would not be used to process payroll checks for a business with hundreds of employees.
The good news is that many banks have programs that combine a business checking account with some type of interest-bearing savings account for larger balances. They may even have an automatic sweep provision that moves balances in excess of a pre-determined level out of a non-interest bearing checking account into an account where interest is earned. There may be a limit on the number of monthly transfers back into the checking account, but the business can periodically (perhaps once or twice a month) move the funds they need back into the checking account.
If you write a large number of checks or need a payroll account for a large number of employees, be sure to discuss these types of needs with a bank representative. They will help you establish accounts that work best for your business.
Today, many businesses manage all of their banking remotely and the convenience of a branch location may not be as critical as it once was to a business owner. If banking remotely is important for your business, then it is imperative to make sure your bank has the online, mobile and remote deposit tools and capabilities you need to run your business efficiently. And although you may not need to visit a branch often, select a financial institution that is committed to delivering superior customer service and one that understands and anticipates the financial needs of your business.