When you start a business, you need flexibility. A bank account that can deliver that flexibility should be number one on your list of must-haves. An account like this can save you money and give you the cushion you need as you perform the delicate act of balancing dollars in and dollars out.
So what’s the best business checking account you can open? You should look for three main things:
- It should be free
- It should be accessible online
- It should not have a minimum balance requirement
How do each of these features help you run a successful business? Let’s look at each one individually to see how it can benefit a business owner.
WHY YOU NEED A FREE SMALL BUSINESS CHECKING ACCOUNT
When you run a small business, you have a lot of expenses. From paying rent to buying supplies to paying your employees, if you have any, you constantly have money going out the door. Paying for your checking account should not be added to that list.
Many banks charge for small things you may not even realize you would have to pay for. Watch out for hidden fees associated with your checking account, such as:
- Overdraft transfer services: Especially if you have a young business, you may still be working out the glitches in your accounting. You want a financial institution that won’t charge you when you have to draw on another account to cover a check.
- Monthly statements: Some institutions offer only e-Statements for free and will charge for the paper version.
- Activity limits: Businesses make a lot of transactions. You don’t want to be limited to a select number to maintain your free checking account.
WHY YOU NEED AN ONLINE BUSINESS CHECKING ACCOUNT
Online banking allows you to check your account while you’re on the go. Say you’re paying a visit to a client and you want to know if their latest check cleared. You can pull up your business checking account on your mobile phone and check the status, instead of having to take the time to swing by a branch.
Online banking can also help you stay on top of your business’s financial situation. For instance, you can set up alerts to appear on your phone when you have a low balance or receive a deposit.
Additionally, you can deposit checks via your mobile device any time of day, which cuts down on the possibility of losing or damaging a check before it’s deposited. Does that sound outlandish? Consider that many small business owners work from home, and their business mail gets mixed in with personal mail that may get misplaced or damaged.
WHY YOU NEED A FREE, NO MINIMUM BALANCE BUSINESS CHECKING ACCOUNT
Maintaining a minimum balance can be a constant source of stress for a small business. Many have a modest cash flow to start. They’re not bringing in a lot of money, yet they still have to pay out a lot for expenses. The business may not have a cushion most months, and that makes meeting a monthly minimum balance a very real challenge. Even if the fee for going below the minimum is small, over time, those fees can really add up. To avoid the fees, the small business owner shifts focus from efforts to grow the business to making sure deposits and withdrawals meet their financial institution’s timeframe. A fee-free checking account eases that particular worry.
FIND A BUSINESS CHECKING ACCOUNT THAT MEETS YOUR NEEDS
Now you understand why it’s vital to find a free online business checking account with no minimum balance. An account like this will help you stay on top of your business expenses. It will also encourage you to let your business grow. Are you ready for a business account that meets your needs? Contact PSECU today to learn more about our accounts.