Best Bank For Business Checking Accounts - What to Look For

Owning a small business usually means wearing manyover-the-top fee structure related to any number of
hats - as head of sales, production, officeregular bank services.
administration, payroll and yes, accounting. Choosing aFor example, some banks charge fees relative to your
business bank is often done impulsively. Many businessaverage daily balance, or they require a minimum
owners look for one that is near their place ofbalance during the course of a given month. Others
business or their home - or one that is on the way tocharge for processing checks after granting you a
work. Others choose based upon fancy advertising orcertain number of free transactions. Be sure to ask
a catchy slogan. Still other business owners might seeprobing questions about all of the possible fees you
a featured special offer and just make a split decisioncould encounter while a customer with the bank, given
to choose that bank.the anticipated banking habits of your particular
Truth is, most small business owners feel that they arebusiness.
just too busy to take the time to choose the very best3. Understand, in particular, their overdraft policy:
bank for business checking accounts.Overdraft fees have become a big money drain for
However, if you think about it, choosing wisely canpersonal and business checking accounts alike. The
mean the difference between finding a business allyneed to have to pay large amounts of money to your
and ending up stuck with a fee-hungry institution whobank in overdraft fees can usually be traced back to
seems like they merely are out to increase their annualparticipation in overdraft protection programs. These
profits at your expense.programs, while sounding benign or even helpful to the
If you are looking for the best bank for businesscustomer, can actually be structured in such a way
checking accounts, here are some tips on what to lookthat bank customers end up spending more each
for:month than if they had not been enrolled at all. Be sure
1. Make sure they are FDIC-insured:to inquire carefully with your prospective business bank
This one is pretty obvious, but not being FDIC-insuredabout their overdraft policies.
should be an instant disqualifier for any bank you are4. Find out whether they offer additional business
considering. You see, the bank that you end upservices:
choosing may not necessarily be one of those bigOne of the biggest potential benefits of being a
banks with the large advertising budgets who placebusiness banking customer is having access to other
ads in major newspapers and make flashy TVvalued-added bank services, such as payroll services
commercials. In fact, your business may best benefitand small business loans. Make sure to check out the
from becoming the customer of a small local orfull range of services available to you as a bank
regional bank. This can be a very advisable option. But,customer.
all the more reason to ask about whether they areResisting the temptation to impulsively choose a
FDIC-insured.business bank based upon geography or clever
2. Be sure you understand their fee structure:advertising can pay off. Spend some time doing your
The banks you consider may tell you they offer freehomework and you will increase your chances of
business checking. That's all fine and well, but makefinding a bank that will satisfy your business needs for
sure there is no catch. The catch, in many cases, is anyears to come.