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When you own or manage a business, you're responsible for the financial matters. You need to ensure your business checking account is the right one for your current needs, keeping in mind that these needs can change over the years as your business grows. You need to know how to choose the right business checking account for your company. From paying fees to earning interest, checking accounts can come with many advantages and disadvantages. Here's a look at everything you need to know.
Factors to Consider When Choosing a Business Checking Account
Monthly maintenance fees can quickly eat into your revenues. Some banks and credit unions have checking accounts that charge fees. Some of these accounts will waive these fees if you maintain a minimum balance, which can range between $500 and $1,500, or have a certain amount in combined deposits. Sometimes, the fees can be high, such as a monthly fee of $8 to $30 for having a checking account or a per transaction fee of .25 cents each if you go over a certain number.
Another factor to consider is the amount required to open an account can vary. It might be different from one bank to another or from a bank to a credit union. You might also find that the minimum deposit can vary from one type of checking account to another within the same bank or credit union.
Some accounts offer unlimited transactions, while others have a set number of free transactions per month and charge for additional transactions. Before choosing a credit union, you might give serious thought to the average number of transactions your company performs each month. You may find that some checking accounts earn interest or dividends, depending on the account and how much money remains in the account. You can shop for the best interest rates or dividends for your business. Another thing to consider is the value of add-on services. These add-ons can include:
● Online banking
● Mobile banking
● Bill pay
● Mobile check deposit
● Account alerts
● Overdraft protection
● Payroll services
● Merchant services
● Fraud protection tools
Types of Business Checking Accounts
You should always check with different banks and credit unions to compare the available checking account options in your area. You deserve the best fit.
Here's a look at several business checking account examples at MIDFLORIDA Credit Union that might fit your needs:
● Free Business Checking: These checking accounts often appeal to small businesses and non-profits with lower transaction volumes. There isn't a minimum balance requirement but does not earn interest.
● Business Checking Plus Interest: This account is good for businesses that can maintain higher balances to potentially offset monthly fees. The amount of interest you receive depends on how much money is in the account.
● Freedom Business Checking: This business checking accounts is for businesses with low or no credit. These checking accounts may have higher fees but can help build business credit.
● Premier Business Checking: Designed for businesses with high transaction volume and treasury management needs. These accounts may include features to improve cash flow and more sophisticated financial management tools.
When you're shopping around for the right financial institution and checking account, some other things to consider are remote deposit capture, extended banking hours, and full-service Saturday hours. MIDFLORIDA Credit Union offers Saturday hours, including the lobby between 9am-1pm and the drive-thru between 8:30am-1pm.
Select MIDFLORIDA Credit Union for Business Checking Accounts
At MIDFLORIDA Credit Union, we take pride in our selection of business checking accounts. Our team knows that your business has unique needs and a cookie-cutter checking account isn't going to be a good fit. We take the time to learn your needs and understand your concerns, so we can match you with the best business checking account for your company. Contact us now or stop by one of our 65 branches to discuss your business needs and find the right checking account for your business.
