Tip & How-To about Finance

Savings Account I Don't Fear You!

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.

Posted by on

Finance Logo

Related Topics:

Related Questions:

2 Answers

What Are The Fees Associated With The Business Loans?


contact the organization from whom you wish to get the loan
every bank charges different rates

Jun 23, 2016 | The Computers & Internet

1 Answer

I need to open a business checking account. Does anyone have any info about the different types?


There are so many types of business checking accounts and it really depends what your needs are ie are you small or big business. Take a look at this link to the US Bank which gives information about some of the different types of accounts that they offer;
https://www.usbank.com/small-business/checking/compare-business-checking-accounts.html

Aug 19, 2013 | Finance

1 Answer

What is a business savings account?


A business savings account is an bank account for big or
small businesses, that allows you to deposit the money you earn and save it, while you also earn an annual percentage yield. The bank providing the service usually asks for a monthly maintenance fee.

Aug 14, 2013 | Finance

Not finding what you are looking for?

557 people viewed this tip

Ask a Question

Usually answered in minutes!

Top Finance Experts

Debbie

Level 3 Expert

1860 Answers

john h

Level 3 Expert

12104 Answers

Tom Chichester

Level 3 Expert

34690 Answers

Are you a Finance Expert? Answer questions, earn points and help others

Answer questions

Loading...