How to choose a bank account if you own a small business

Having a checking or a savings account has become very common and usual, and more and more individuals nowadays have one or even several bank accounts. There are many different types of the accounts, meant for different purposes and based on different terms and conditions, and they are nevertheless becoming a necessity of individuals in modern society. If you are an individual and a private entity, you can still live without a bank account. However, if you own a small business, having a bank account is a necessity you simply cannot work without.
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Unlike personal bank accounts, business accounts usually come with larger fees and different terms and conditions, so it may not be easy to find the best solution for your business account without losing too much money on service and all sorts of other fees. Still, there are ways to significantly reduce or even completely avoid certain fees, and in this article you will read a few suggestions on how to choose a bank account for a small business.

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First of all, it is crucial to know the needs of your business in terms of the bank account. For example, if you handle a lot of money through your business and its bank account, it is important to choose the account with as low cash handling fees as possible, or with no cash handling fees at all. Choosing the bank account that matches your business policy and methods can save you up a lot of money on yearly basis.
Most savings and checking accounts charge a monthly service fee, which is a fee for maintaining the account. It can be a fixed amount or include a percentage of monthly incomes, and it is on average $13 for personal accounts, while for the business account it is lower and ranges between $5 and $10 per month. However, there are banks that do not charge monthly service fees, but they usually require you to keep a certain amount of money on the account at all times. If you can afford to keep that amount on the account, than you can save money on the maintenance fee and pay nothing for it.
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Find bank which gives benefits

Most banks offer a range of benefits to their loyal customers, so if you own a small business, it is recommended that you stick with one bank. The bank will usually offer you certain discounts and special services if you join all your accounts within that bank. Also, it helps you keep track of the transactions and funds you have available, while it also helps you save some money when you use the discounts and special offers from the bank.

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In order to save some money on fees the traditional banks usually have, you may consider opening an account in a community bank, since they offer a range of conveniences for small business owners and they have the lowest fees. Also, you can choose an online bank for the same reasons. Many business owners and individuals still do not feel comfortable of having a virtual account, but online accounts are very small business-friendly.

Laura Wilson
 

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