For you and
your new venture to enjoy the various services, solutions, and benefits a bank
offers, you need to choose the best bank to open a business account in. To help
you select the best one, here are some key questions that you have to ask
first:
1.
How
soon are deposited funds available?
Today,
there are still some banks that put a hold on certain types of deposits. For
most startups, fund availability is very important and if you want to be sure
that your deposits can be instantly credited, you need to verify this with the
bank representative. While asking this, try to get details about the bank's
process for handling deposits and withdrawals as well. This is because there
are certain banks that process a deposit first, and then process the
withdrawals from the same day, but others credit the deposit last. In such
instances, you will likely overdraw multiple times – something that you don’t
want to happen to avoid paying surcharges and penalties.
2.
What
is the required maintaining balance to avoid fees?
One
of the important things you need to know when opening a business account is the
minimum deposit required to open an account and the minimum balance required to
waive monthly bank fees. Find out the upfront price of opening an account as
well as the continuing requirements, since there are certain types of accounts
that require a direct deposit or a recurring payment to avoid monthly service
fees. Aside from monthly service fees, find out if you will be charged for
other fees such as a stop-payment fee and deposited item return fee.
3.
Does
the bank offer overdraft protection options?
Due
to one reason or another, many startup business owners avail of a bank’s
overdraft’s facilities. Although this bank service offers several benefits, it
is best to sign up for overdraft protection as well. Without an overdraft
protection policy, there is a risk that your business debit card may be
declined or your check might bounce. Although you will have to pay for an
additional charge for overdraft facilities and protection, it is an invaluable
service that you can rely on.
4.
Does
the bank have mobile banking and online bill payment features?
Lastly, you
will be able to save a lot of time if you can carry out some banking
transactions online. It is simply a more convenient option as well. However,
you have to make sure that the bank you choose has a high level of protection in
place against fraud. Also, take the time to compare the mobile apps of
different banks to see which ones are the most functional for your needs before
choosing one.
Having a
business bank account not only means having a safe and secure place where you
can deposit your money. By choosing the right bank, you will gain access to
different banking and financing services and solutions that can be beneficial to
your business.
