Looking to open a small business bank account? Before blindly wandering into your nearest financial institution, take some time to think about what you're really looking for in a bank. By researching your options and carefully selecting the best bank for your business, you're much more likely to have financial success. Just keep in mind that every business is unique, and finding the optimal account for your particular needs may take some work. For tips, read below!
Evaluate your needs.
If your business is still in its initial stages, there are probably a number of unknowns when it comes to your finances. But although you may not have specific requirements in mind, it's important to at least come up with a general list of products or services you expect from your bank. For instance, is a bank without online bill pay a deal-breaker for you? What kind of minimum balance are you willing (or able) to maintain in a checking account?
Also, bear in mind the nature of your business, and how that may affect banking costs. For instance, will your business be making any international transactions? If so, make a mental note to pay close attention to things like foreign collection fees. This will help you better calculate your potential banking costs when it comes time to comparison shop.
Distinguish between the different types of banks.
Picking a bank is really only half the battle. You also have to decide which type of bank is best for your business. Options include Investment, Online, Commercial, Retail and Savings & Loan institutions. No matter what type of bank you choose to go with, the most important thing is to make sure the financial institution you finally pick is FDIC insured up to the full $250,000.
Now that you've narrowed down the type of bank on which to focus your search, it's time to investigate your banking options. Compare the fees at your top bank picks. When doing this, it's crucial to remember the mental notes you took in step one, where you focused on the nature of your business. For instance, if you make a lot of international transactions, a bank with free checking and high foreign collection fees may not be as favorable as a bank with a small monthly checking account fee and low foreign collection fees.
Remember to also take into consideration any perks the different banks may be offering for opening a new account. However, that doesn't mean you should forego your best long-term banking option for the sake of a one-time promotional deal at another bank. Make your choice carefully, and after a bit of research, you'll find the best bank for your small business account.
If you have any questions about business banking services or would like to speak to someone about the best choice for your business, please contact any Bank of Virginia location today.