Choosing the Best Business Bank Account to Grow Your Company

 

Considering the Best Business Bank Account to Grow Your Company

Bank accounts are very essential in running a business, large or small businesses bank accounts are needed for receiving of funds or loan processing.

As a business owner, finding the right banking partner tailored to your company’s needs is very essential for smoothly managing finances and operations. With various account options across traditional and online-only banks, making the optimal choice requires weighing feature sets alongside growth plans.

Comparing Business Checking Account Features

A dedicated business checking account serves as the gateway to banking operations. Compare primary built-in capabilities from top providers to gauge suitability.

Most accounts lack monthly fees for a minimum daily balance often between $500-$2500. However, businesses maintaining less risk fees overdrawing. While transaction limit varies, fewer than 200 checks or card swipes monthly remain gratis typically. Additional activity prompts transaction fees unless upgrading plans.

Wells Fargo ProAccount stands out with no monthly maintenance or transaction fees regardless of volume. Only charged $15 if balance falls under $500. However, smaller firms just getting started may struggle maintaining that or using all features immediately.

Bank of America Essentials offers basic online capabilities without monthly costs for $1500 minimum daily balance. Unlimited transactions provided, but excess over 200 incurs $0.50 each as penalty. Useful once transaction volume picks up after initial phases.

Many lesser-known online banks also offer free business checking like Novo which functions well digitally at zero maintenance costs for businesses without branch needs. Minima ranges between $500-$1000 even waived occasionally.

 

Weighing start-up capital against expected transaction rate assists choosing right checking product balancing flexibility and control over costs during various growth phases. Upgrading later supplements evolving demands.

Perks of Savings Accounts for Reserves

Beyond usual operations, maintaining reserves benefits unexpected costs or lean months. Shop interest rates to maximize idle funds.

One of the highest yielding currently remains American Express National Bank Money Market at 2.25% APY for balances over $10,000, with no monthly maintenance fees. Automated savings tools help build reserves over time without much effort beyond setting goals. Great for businesses generating stable surplus post-expenses.

For smaller reserves, Ally Bank offers 0.50% APY across all balance tiers and no minimums - an edge over big bank rates barely above 0%. No monthly fees either, all managed via their mobile app easily. Great starter option while funds are accumulated online.

Certain accounts also allow easy funds transfer to checking accounts within minutes when urgent costs arise, without liquidating entire reserves and incurring associated taxes. Research options compatible with usage plans long term.

Considering Online-Only Banks

Digital banking removes overhead associated with physical branches. Online institutions like SoFi revolutionize the model with perks businesses value.

SoFi Business Checking has no maintenance fees and unrestricted ATM access worldwide. Plus, cash back offers on paying bills via Mastercard. Mobile check deposit eliminates trips to physical banks. Great for growing start-ups and sole proprietors valuing remote operations flexibility.

For larger payrolls or transactions, Standart Business Bank offers free checking with cell phone/digital wallet cash withdrawals at major retailers' registers or ATMs using bank's mobile app. Low 0.25% interest on collected balances also saves idle funds, suited for modern operations with minimal overhead optimized through digital banking.

Weigh infrastructure and team’s mobility needs against savings from avoided branch fees to decide best options leveraging technology in operations seamlessly. Digital banking appeals many growing businesses beyond geographical constraints.

Integrated Payment and Accounting Tools

Ease of payment collection and bookkeeping accelerates cash flows. Banks like Chase streamline operations with such integrated tools.

Chase Business Complete Checking allows pairing invoices and POS through QuickBooks right from the banking interface minimizing manual data entry. Plus accepting card and e-checks directly on invoices. Increases collections speed while improving record accuracy. Its Quick Accept card reader accepts payments anywhere hassle-free via mobile phones. Customers see request links for quick approvals without apps. Funds transfer instantly into checking account. Works great for service businesses on field requiring flexible payments acceptance.

Weigh how much selected systems already complement bank's integrated portal based on size and receipt types before committing. Right fit expedites operations devoted instead to growing core offerings. Periodically review evolving alternatives suiting changed needs.

Explore CD/Money Market Hybrid Accounts

Hybrid accounts offer dual benefits of CD safety and money market liquidity. One such is CIT Bank’s Early Choice Money Market which locks up deposits for only 10 days for higher 1% APY compared to standard savings accounts, accessible anytime post lock-up without penalties. Adds more earnings potential than regular alternatives. 

Suitable when short term surplus needs parking securely or steppingstone amounts between various reserve products over time. Move funds seamlessly between savings and money market as balances allow higher yields in different tiers.  

Applying for SBA & Industry Specific Accounts 

Specialized accounts cater niche business requirements exceeding general solutions. Explore targeted banking partnerships.

JP Morgan Chase Business Edge for Healthcare Professionals account comes with dedicated healthcare consultant assistance navigating industry challenges and regulations compliance. Lower monthly maintenance ($15 versus $25 normally) suits medical practices better.

Various regions also have branches of national/local community banks affiliated with SBA preferred lender program. Post-approval, those assist specific clientele segment like woman/minority owned firms get financing through customized solutions and packages. Streamline funds access vital for venture growth SBA caters to support local economies.

Look out how prospective banks participate in industry or segment funding beyond transactional benefits. Targeted networks assist greater through industry knowledge and support resources access as a value-add service.

Importance of Reviews and Personal Advice

Bank selection heavily relying on requirements alone risks missing essentials without live experiences. Reach out your trusted networks.

A successful franchise owner suggests WellsProAccount for new businesses but moving to Chase Business Elite once stable cashflows foreseeable from annual revenues over $100K.##2 An automotive industry entrepreneur found Bank of America best suited their expedited funds access needs than online alternatives during rapid expansion phase having physical branches nationwide.

Consult other founders and bookkeepers you respect on their long-term banking evolution tailored to specific needs at each stage. Ask the pros and cons they faced to fill any unseen gaps in your research avoiding common obstacles. Their recommendations may surprise you beyond common options.

In conclusion, careful consideration across checking, savings, integrated payments and peers’ experiences results in the optimal business bank account improving cash flow management through various growth cycles. Revisiting needs periodically ensures continuous maximizing resources towards your venture’s success keeping pace with evolving goals over time.

Disclaimer: This information is for educational purposes only.