What to Look for When Choosing a Business Bank Account


The past few years have created a brand new professional landscape. One in which the market of freelancers and small business owners is more active and hyper saturated than ever before. This means many professionals are learning the ins and outs of business ownership for themselves for the very first time. Included in this is the various financial management practices involved.

For instance, many small business owners and freelancers are shopping for their first business bank account, and don’t exactly know what to look for from the various banks. It’s important to keep in mind that banks are technically private institutions. In other words, they’re working to make money by offering a variety of financial services. These services include checking, and savings accounts, but also include things like loans, credit lines, and other financial services on which the profit margins are higher.

Not only that, but banks also use the pooled money from consumers to invest and create other financial products, essentially making money off of our money. This is why it’s important as a small business owner to shop carefully and make an informed decision about your first business bank account. Below are a few of the things to consider when looking for the best business bank accounts for your individual needs.

Consider any Associated Fees

One of the first things you’re going to want to consider when shopping for a business bank account is any associated fees that might be put onto the account. Banking fees can range in any number of reasons and frequencies. These could be fees related to withdrawals, spending, minimum balances, overdrafts, or just about anything else under the sun.

Not only that, but you’re also going to want to consider interest rates. This is the case for both checking and savings accounts, as well as any credit lines that you might open through the bank. Knowing the interest rates on the savings accounts will be beneficial for figuring out how much you can earn passively just by placing your money with that institution.

On the credit side of things, you’re going to want to consider how much interest you’ll be paying on expenses you credit.

Credit, Debit, or Both

Speaking of the interest rates, you’re certainly going to want to consider what sort of business spending needs your organization has. This will help you determine the right type of account for your business or startup organization, and will also help you decide if you want to have more than one active account with the same institution. As a business entity you can have checking accounts, saving accounts, and of course, credit lines. These function almost exactly as they do in your personal life, but create the financial landscape of your business or organization, rather than your own personal life.

By having a healthy financial portfolio, your business credit score will increase, and you’ll even find it easier to secure additional business loans if you choose.

The Mobile Banking Landscape

A major factor to think about before choosing your business bank account is how convenient and easy it will be for you to use the mobile banking applications and features. In a day and age ruled by technology, having nearly instant access to your financial accounts is a huge advantage.

If mobile banking is important to you, you should take the time to read reviews written by current customers of various banks to see who has the best and highest rated application or mobile banking service.

Beware of Introductory Offers

Introductory offers can be attractive, but dangerous. If you’re going to sign up for a business bank account with an introductory offer of some sort, it’s highly suggested that you take the time to understand what happens when the introductory offer expires.

This is extremely important because you don’t want to find yourself locked into a contract with an institution who hikes your interest rates to double what the current economy dictates. While introductory offers can give businesses some awesome benefits, especially if they’re utilized to the fullest capacity, it’s important to do the due diligence and understand the terms of the deal beyond the intro offer.

Merchant Services if Necessary

Finally, this is going to be a huge consideration for many businesses. If your venture needs to accept credit card and debit card payments from consumers, you are inevitably going to need a merchant services package from your financial institution.

This will allow you to process debit and credit card payments, and keep track of everything without over complication.

A few Final Thoughts

Getting your first business bank accounts set up and established is a huge step for any freelancer, small business owner, or start up entrepreneur. Take your time when shopping for your first business bank account and do your research so you can feel confident in choosing an institution that will hopefully help you scale your finances both professionally and in turn, personally.