Choosing a bank for your new business is quite a big decision, with the right features you can increase your profits. But with lack of knowledge, you may end up paying certain fees and payments that you can avoid otherwise. To select the right bank, you need to call in and see how they charge their account holders. Look at all the monthly fees they charge and compare it with other banks. Look for other features that can be beneficial for you. Many people never find out about the benefits they have and end up spending more than they should.
By keeping a close eye on all the benefits and charges and comparing what the banks offer to what you need can completely change the way you will make a profit. The change may look small at first, but it is a different story once you add it all up on an annual basis.
If you feel like that your bank is taking more than it has to, then consider the following and make your decision:
Compare Checking Accounts
The whole point of checking accounts is an easy liquidation, which is very crucial if you are running a small business. You need to make sure that you are not paying unnecessary fees. Take a look at and compare chequing accounts via online tools. See what the banks out there are offering and ask yourself these Questions:
1. What Is My Minimum Balance Requirement?
The best answer to this question is that your bank should not impose something like that on you. You can avoid your money from freezing in your account even if it earns zero interest by selecting the right bank. Instead of having your $500 to $10,000 always locked up in your bank, you should have the freedom to withdraw as much as you want by choosing the right bank.
2. Do I Have Mobile Access?
You need to have online banking to survive in this fast-paced world. Make sure that your bank does not deprive you of the ease of accessing your money remotely. You should be able to check the status of your account and pay bills or make electronic deposits from wherever you are.
3. Am I Paying Monthly Fees?
When people are starting out, they have no idea how banks work and take whatever banks place in front of them as a standard. In reality, every bank has its policies, and you may be able to avoid some charges and monthly fees. Remember some banks do not charge anything or offer ways in which you can avoid the fee. They may ask you to keep your savings and retirement banks in the same place, or you might have to make a direct deposit account. Consider how you can profit from the incentives and then make your decision.
4. How Much Control Does The Bank Have Over My Transactions And ATM Access?
You should be able to make as many transactions as you can without considering the incurring charges. For that reason, you need to choose a bank that does not limit your number of transactions and charge you for depositing or transferring your money. You also need to consider the ATM network of your bank so that you do not have to pay for withdrawing your own money from other banks’ ATMs. You may even be able to find a bank that reimburses all the fees that other banks charge for withdrawing your money.
Compare Saving Accounts
The world is very unpredictable, and you may find yourself in a knot at any given time. Anything from an emergency trip to the hospital to a leakage in your piping can cost you a lot of money that is hard to procure instantly. When you are the owner of a business, you may need to have some extra cash on hand for situations when something goes wrong with ordering or delivering your goods.
You may need to do some emergency repairs at your office or warehouse, which is why it is essential to have some money set aside so that you are not completely helpless. Hence, we have saving accounts that help you set some money aside for these situations. Before selecting a bank for your precious savings ask yourself the following questions:
1. What Are The Competitive Interest Rates?
You need to make sure that your savings grow and don’t just sit there waiting for an emergency. Look at all the interest rates that the banks around you have to offer. Competitive interest rates are vital and something that you need to consider seriously. These days, interest rates are low, which is why you need to consider competitive rates relative to inflation at the least.
2. Are My Money Insured?
You need to be sure that your hard-earned savings are secure even if the bank fails. Find out if your bank is insured by Federal Deposit Insurance Corporation or the National Credit Union Administration. The standard amount that can be insured per depositor is $250,000. In case you want to deposit more, look for another bank to keep your savings safe. You can check if your bank is insured through Federal deposit insurance online.
3. Where Does My ATM and Mobile Access Stand?
Most experts suggest that you have to make it hard for yourself to access your savings so that you are not tempted to use it. But this also makes it hard to get that money when you are in a real emergency and need it instantly. For that reason, you need to have access to your savings through ATMs and electronically. Make sure you can make transactions using your computer or on the go using mobile apps. You should not have to visit the physical branch.
4. Can I Have Sub-Accounts?
It is an excellent idea to divide your savings into sub-accounts so that you can separate your money for extreme emergencies. You may want to save money for various reasons, e.g., for the down payment of your own home or a relaxing vacation, or for emergencies. It is also a perfect way to keep track of your money and not overestimate your savings. By keeping your emergency money separate you also save yourself from the temptations of spending it on other things.
You need to avoid banks that charge you money for excessive transactions or on balance fees. Many banks are on track with the program since Consumer Financial Protection Bureau place certain disclosure requirements for the banks. Moreover, the competition has created a much healthier environment where the banks are trying hard to be on the same page with their customers.