Tip & How-To about Finance
Business savings accounts are often a hassle for small businesses. Their management, rules and fees are different from personal bank accounts and therefore it can be hard for the owners to deal with them.
But there is no need to fear! Here are 5 tips to help you learn about different options, choose the bank and account that best fulfills your needs, and keep its menagement simple and free of risks.
1. First of all, most banks require the payment of a monthly service fee. Usually this fee goes between 5$ to 10$, however most banks will waive it if you keep a certain amount of money in the account. Therefore first of all make sure to shop around to find a bank that asks for a reasonably low monthly service fee. Then make sure not to drop below the threshold so that the bank will accept to waive the monthly fees.
2. Another important way to choose a bank is according to what kind of business you have and what kind of account it needs. If your business handles a lot of cash, for example, you need a bank that has a low cash handling fee. Or if your business makes a lot of transactions, you need an account with a low excess transaction fee, etc.
Consider what your business needs and then choose an account that will facilitate the business's financial activities at the lowest possible cost. For this reason it is very important to explore as many options as possible.
3. Consider community banks. They may offer lower fees and be more flexible where small businesses need flexibility.
4. Consider also online banks. Many people have avoided them because the idea of having an only virtual account sounds inconvenient. However online banks are becoming more and more popular and are especially friendly to small businesses and willing to work around their needs.
5. Last but not least, banks often offer discounts and special terms to customers who combine all their accounts under their bank. Therefore, by using the same bank for all your business's financial needs you will at the same time save money on account fees and build a relationship with your bank, making it easier in the future to ask it for favors.
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