Choosing a bank for your business involves more than opening a new account at your personal bank or picking the branch office nearest your company. You need to understand what services you require and how much they cost. Ideally you’ll find a banker who will take the time to walk you through how to solve a problem, so you can go back to running your business.

By on 13-11-2018

THINGS TO BE KEPT IN MIND WHILE OPENING BANK ACCOUNT FOR YOUR BUSINESS

Choosing a bank for your business involves more than opening a new account at your personal bank or picking the branch office nearest your company. You need to understand what services you require and how much they cost. Ideally you’ll find a banker who will take the time to walk you through how to solve a problem, so you can go back to running your business.

 HERE ARE A FEW ISSUES TO KEEP IN MIND WHEN YOU LOOK FOR A BANKER:

• CAN I USE ATM FOR FREE

ATMs allow you to withdraw money from your checking account without visiting a bank branch. But some withdrawals could cost you. Many banks charge you to use machines operated by other banks or third parties, and those fees can add up quickly. If a bank has a large network of ATMs, you have better access to no-fee withdrawals. Plus, some banks reimburse you for ATM fees.

•  WITHDRAWAL LIMIT

Withdrawing more than your account contains is called an overdraft. Unless you’ve opted in to a bank’s overdraft service, your transaction will typically be declined. Overdraft service generally allows your transaction to go through, but you will be charged a fee. You can also enroll in optional overdraft protection, which allows you to cover an overdraft with money from another account, such as your savings or a credit card. Keep in mind that this protection can result in a fee, and if you pay for the overdraft via a credit card, it may also be subject to interest.

•  FEES

Some banks charge monthly fees to maintain your account. In many cases, though, they waive those fees based on certain conditions, such as regular paycheck direct deposits.

•  MINIMUM BALANCE

Some banks require you to pay a fee if you don’t maintain a minimum or average balance in your account, though those fees also may be waived based on certain conditions.

•  IS THERE A BRANCH NEARBY?

Unless you don’t mind doing all your banking online or over the phone, you might want to consider an institution with a branch close to your work or home. It may be worth spending some time on the bank’s website to figure out what transactions will require you to visit a branch.

•  NET BANKING

You may be able to check balances, transfer money, receive statements and pay bills online. If you don’t have easy access to a branch, online banking can be very valuable.

•  MOBILE BANKING

Some banks have mobile apps for convenient banking on the go. For example, you may be able to deposit checks by taking pictures of them with your phone. You may want to consult reviews of your bank’s app to see what specific services are offered, since it can vary.

•  WILL IT COST TO TRANSFER MONEY?

Many banks don’t charge you to pay bills directly from your checking account. If you’re transferring money to another person, banks generally won’t charge you if that person also has an account with the bank. However, if you’re transferring or wiring money outside the bank, you may be charged a fee.