With all the financial institutions in the world clamoring for more and more business, hype is at an all-time high in the financial district. Terms and conditions that are applicable to certain trial dates can lead to confusion once these “free trials” end and can leave the business owner feeling used and defeated with an account that no longer suits their needs. Fortunately, there are a few guidelines to follow to ensure that your company gets the account it needs by performing a bank account comparison.
Company Size and Business Account Options
The business checking options will vary depending upon the size of your own. Incentives that hook small businesses aren’t necessarily applicable to big corporations and vice versa. Each size of business requires a different set of account options in order to optimize financial support and services.
Small businesses tend to make fewer transactions than larger corporations and therefore greatly benefit from a preset limit of free transactions. Typically with this type of package, once the preset limit is reached, a small fee is charged to each applicable transaction thereafter. Some business accounts even offer an interest earning option that is beneficial to businesses with low to moderate transaction volume. Conversely, larger businesses require a moderate to high number of transactions and usually pay a small monthly fee to allow for this difference.
Small business accounts tend to forgo monthly minimum balances but usually sacrifice interest earnings for this advantage. Moderately sized businesses usually have accounts that require a minimum daily balance or a monthly averaged balance that exceeds a predetermined limit. Minimum balances for larger businesses tend to be slightly more complicated; these can be determined by an average daily balance, average combined deposit balance, or average combined deposit balances and outstanding credit balances. The specific amounts are different for each institution, be sure to contact individual banks for detailed information.
Many business owners neglect to factor in maintenance fees when performing a bank account comparison. This usually isn’t a big deal for a small business account since most do not have a monthly maintenance fee. However, moderately sized and larger businesses must take these fees into consideration when comparing business accounts. Nowadays, most financial institutions only charge maintenance fees if the balance falls below a predetermined minimum limit. Once again, the amounts of these fees vary by institution so be sure get an accurate number when comparison shopping for an accounts.
Even though you may own a certain sized business, not all accounts suggested for that sized company will suit your needs. Some business accounts are geared toward non-profit organizations, community groups, and public agencies while others lean more toward small or growing businesses. Research and investigate each business account you consider to determine the right business checking account for your company.
Business bank account comparisons can be confusing and daunting chores; however, if you take into account your business size and style with business account options you desire, it should be a relatively easy task to choose a business account that will carry your company well into financial security.