Do you have a small business? Is it going through a difficult time?
If yes, then I hope you will agree when I say that free business checking accounts are a real life saver. But to find the best one according to your needs is a tough task.
That is why, for your consideration, I have compiled the factors you need to think about them before making a decision. Once you read it through, you will have the necessary knowledge. Let’s dig deeper.
Best Small Business Accounts:
There are generally three different small business account types available in the market. These are Free business checkings at big banks, free business checkings at local bank and credit unions, and free business checking online.
Free Business Checkings At Big Banks:
The big banks offer much more opportunities as they have a vast array of branches and ATMs. You can make your accounts organize at a single place. Big banks offer better net banking options as well.
Although business checking for free is not available on the big shot banks. It is also difficult to develop a proper relationship with your bank.
Usually, they have an option to waive the monthly fee if you always maintain a minimum balance in your account. In addition, some banks also offer the same benefit if you use the business debit card to make more than ten purchases within a statement phase or integrate the payroll section with your account.
Free Business Checkings At Local Banks And Credit Unions:
You will definitely have better chances to find a free business checking feature on the local banks and credit unions than your big banks. It is possible that there will be no minimum account limit. In addition, it is possible that the bank policies will be more prone to adjustment on cash deposits and transactions.
Also, there is a better chance to develop a proper relationship with your bank. It will be helpful if you face any problems related to banking. In addition, it will also help you to get loans in times when you need them.
However, there are several disadvantages you will face with local banks and credit unions as well. They offer a far lesser array of services as well as products than their bigger rivals. Furthermore, the online banking options will be not as good as the big banks. You will not find a big number of ATMs within your reach.
Online Free Business Checking:
There are some banks that offer their services only online. Naturally, it is available 24X7. As a result, it is excellent for small businesses. With these banks, you can even be able to get a business checking account with interest.
However, there are a few disadvantages as well. You can’t deposit cash on these banks in general. This is a huge disadvantage if you transact mostly in case. Also, you find an ATM of course. Make sure the bank waive off the charges related to these services.
Things To Consider:
There are quite a few things you need to think about before you make a final decision.
Waiving of Fee:
Most banks usually charge a maintenance fee every month. However, you can make them waive it by always keeping a minimum amount in your account.
If you want constant access to an ATM, you would want to look for big banks. They have a wide range of ATMs spread all over the place. However, there is a charge for accessing the ATM that you have to pay.
Maximum Cash Deposit:
Most banks have a maximum limit on the cash deposit. Banks that operate online don’t have a cash deposit option. On the other hand, credit unions are the best option for cash deposits as they have a flexible maximum cash deposit amount.
Limits on Transaction:
All the business checking accounts have a maximum number of eligible transactions per month. This limit usually varies between 100 to 500 transactions every month. You will have to pay an amount as fee on every transaction once you exceed this threshold.
Possibilities of Relationship with The Bank:
Consider the possibility to create a healthy relationship with the bank. Small business can need loans more often and it can be a real hard work to get them if you don’t have a good relationship with your bank. Building a proper relationship with your bank needs a face to face interaction and face value. In this case, the local banks and credit unions are a better option for you as they are easier to build relationships with.
Think about the prospect of online banking as well. Local banks and credit unions often charge a fee for the online banking services. Also, their tools and infrastructure may not be up for the service. On the other hand, online banks and bigger banks offer a much better service in this area.
So, these are the factors that you need to think about before you make an ultimate decision. Time to put an end to the article. I hope it was thoroughly helpful as well as enjoyable. Thank you so much for reading.