How Do I Choose a Bank for My New Business Banking Account?

Starting a new company comes with a flurry of decisions, and one of the crucial ones is choosing the right bank for your business accounts. With so many options out there, how do you know which bank will offer the perks and services that align with your company’s needs? Based on years of conversation with our clients, here are some frequently asked questions to consider.

What do I need to open a business banking account?

The necessary documentation to open a business bank account varies by bank. Bank of America lists its requirements for opening an account:

Business banking accounts can generally be opened entirely digitally online or through a mobile device. Alternatively, business owners can visit a branch or call to start an account.

You may need some or all the following, depending on how you have formed your business’s legal structure:

  • The address and phone number of your company
  • The name(s) of the people who will be listed as account owners
  • Personal identification such as your driver’s license
  • The bank’s minimum deposit amount. Unfunded accounts may be forced to close.
  • Documentation that proves the existence of the business. Documents that qualify include:
    1. A federal tax ID number for the business, also known as an employer identification number
    2. Your Social Security number if you are a sole proprietor
    3. State or local authority documents that show you’ve formed a legal entity, such as a limited liability company (LLC)

Are The Business Banking Fees Reasonable?

Nobody likes surprise fees eating into profits, so ask questions and be prepared. How much does the bank charge for monthly maintenance, transactions, overdrafts, and ATM usage? Choose a bank that offers low or no fees, especially for essential services like checking and savings accounts.

 What Interest Rates Do They Offer?

If your company maintains a healthy account balance, you’ll want to ensure your money works for you. What are the interest rates on business savings or checking accounts? Compare rates to ensure you’re getting a competitive deal.

Is the Online Business Banking Platform User-Friendly?

In today’s digital age, convenience is vital. Does the bank offer a robust online banking platform with features like bill pay, mobile check deposit, and account management tools? A seamless online experience can save you time and streamline your financial tasks.

Take The Time to Investigate the Bank’s Customer Service

When issues arise, you want prompt and helpful support. What are the bank’s customer service hours? Do they offer support via phone, email, or in-person visits? Look for a bank with a reputation for excellent customer service to ensure you’re well taken care of.

Does the Bank Offer a Variety of Account Options?

Every business is unique, so flexibility is crucial. What types of accounts does the bank offer—checking, savings, money market, etc.? Choose a bank that provides account options tailored to your company’s financial needs.

Can They Provide Credit and Financing Options?

As your company grows, access to credit and financing may become essential. Does the bank offer business loans, lines of credit, or other financing options? Consider banks that can support your future financial needs.

Is There Integration with Accounting Software?

Efficiency is vital in managing finances effectively. Does the bank’s online system integrate seamlessly with popular accounting software like QuickBooks or Xero? Integration can streamline your bookkeeping processes and save you valuable time.

How Secure Are the Business Banking Systems?

Security is non-negotiable when handling business finances. What security measures does the bank have to protect your funds and sensitive information? Choose a bank with robust security protocols for peace of mind.

Exploring Perks: What Incentives Do They Offer?

In addition to essential banking features, many banks offer perks to attract new business customers:

  • Cash Bonuses: Does the bank offer cash bonuses for opening a new business account and meeting specific requirements?
  • Free or Discounted Services: Are there perks like free checks, waived wire transfer fees, or discounted merchant services?
  • Rewards Programs: Does the bank have rewards programs where you can earn points or cashback on transactions?
  • Financial Education: Do they provide resources or workshops to improve financial literacy and business skills?

By asking these questions and comparing the answers, you can make an informed decision when choosing a bank for your new company. Remember, the right bank can be a valuable partner in your business journey, so choose wisely!

Please Note: Accumera does not endorse any financial institution and cannot offer financial or legal advice. This blog is for informational purposes only. Please get in touch with your accountant or attorney should you need assistance.

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