4 Questions To Ask When Choosing The Best Bank To Open A Business Account With

Starting a new company often comes hand in hand with opening a business account. This is a highly recommended strategy, especially for first-time entrepreneurs, since this can help them have an easier time keeping track of all the expenses that come with their new venture. Having a separate bank account for your company will also provide protection to your personal assets from any legal liability in case things go sour for your business.

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.