Managing finances is vital to a growing business. Whether you’re an entrepreneur getting started on your business venture or own an established business and are looking to expand, choosing the right account can be a cornerstone to success. Switching from a personal account to a business account furnishes your business with features designed to help your business as it grows.
With versatile options available, it provides an opportunity to choose an account that’s right for your business’s unique needs. But it can be difficult to navigate through all the terms to find the right fit. Here are some guidelines to help you identify which business account is the best for your growing business.
Low Fees
As a business owner, you want to optimize your cash flow. This means you need to have a certain amount of money circulating so that you can keep your business equipped with the tools needed to be competitive. The less money you have tied up in exorbitant fees, the more money you have to put directly back into your business. Between operating and overhead expenses, owning a business is expensive. On top of these general expenses, you’ll want to invest in resources that help you expand your market and maintain premium quality.
Choose an account with low monthly fees and limited service fees. Many business checking accounts charge a large monthly fee on top of transaction fees and ATM fees. Look for accounts that have no monthly fees or low monthly fees. Some accounts will even waive the monthly fees if you maintain a certain average daily balance in your account. Though there will often be fees associated with your account, choose one with minimum transaction fees and low monthly fees.
Low Minimum Balance
If you own a small business and are just starting out, you may not have a lot of money to initially invest in your business. Certain business checking accounts require large upfront deposits to open the account. If you have an established business with large profits, this may not be a big deal. However, smaller businesses will have lower profits initially, and you may not be able to afford to initially put all of your business income into an account. Additionally, some accounts will charge a fee if you dip below a minimum balance.
Save money by selecting an account that has low minimum balance requirements. This will ensure that you can open an account and not risk pesky fees, regardless of what your profit margin is.
High Interest Rates
Selecting which business account is the best isn’t just a matter of saving money, but it’s also about making your money grow. Not all business accounts offer interest. However, if you want to help your money keep growing, you’ll want to open a business savings or checking account that offers higher APYs. This ensures that the more money you deposit, the more you earn in interest.
Another way to grow your money is by opening a business money market account or business CD account. Business CDs are essentially time-bound deposits that allow the bank or credit union to use your money for a fixed period of time. If you have a reserve of money you don’t initially need access to, this type of account is advantageous because they’re offered at much higher interest rates. The longer the term, the higher the interest rates.
If you prefer to retain access to your cash, you may opt for a money market account instead. This particular account still offers higher interest rates than a traditional savings account while giving you the ability to write checks from it.
If you’re a business owner looking for one of the best business checking rates, consider Rivermark Community Credit Union. We offer business owners everything they need for daily money management, with high interest rates and no monthly fees. With versatile business checking and savings accounts, Rivermark has the option for you to support your unique business needs.
Easy Access
Running a business is a lot of work. Limitations in money management are an unnecessary complication that can slow down your daily management. With time also being a valuable commodity, choose a financial institution that has access to both a physical branch and online banking.
Online banking has become the predominant way to manage finances. In an increasingly cashless society, the ease of doing banking online is a beneficial convenience. Most services are offered online, from transfers to payments, to even the ability to deposit checks. Phone calls and visits to your local branch can be time-consuming. Online services make money management simple and convenient.
However, sometimes fully automated services can feel frustrating or limiting. Business accounts that operate solely online can be difficult to navigate when a problem arises. This may mean timely phone calls and email queries trying to sort out an issue. Having easy access to customer service at a physical branch is a simpler way to solve a problem not easily sorted out automatically. Plus, it gives you the added benefit of being able to make cash withdrawals and deposits or obtain a cashier’s check.
Low Transaction Limits
Most business accounts have fees associated with transaction limits. Typically, you’re allowed a certain amount of free deposits or withdrawals. These limits can include cash or check deposits, online transfers, or bill payments. Depending on the type of account, these fees can add up quickly if you’re not careful.
Read the terms and conditions carefully and select an account that has applicable transaction limits and low fees. The best business accounts will allow you more free deposits and a larger amount of cash deposited before charging a fee. It’s also important to inquire how much the fees are once you exceed the limits. Though it’s difficult to avoid unwanted fees, they don’t have to be a financial burden.
Owning and operating a business can be an exciting enterprise. Keep these criteria in mind as you choose the best business account for your distinctive needs.
