Throughout my years helping small businesses open accounts at MainStreet Bank, I’ve often been asked “What is the best checking account for my business?” While there’s not one answer, I ask them several questions to help point them in the right direction. After all, if you’re just starting out you’ll want to have a checking account to set you up for success.
- Will you have a large volume of cash deposits and transactions?
If you’re likely to have multiple cash deposits each month and several transactions, it may be a good idea to look at a commercial analysis account. With this account you can earn a credit based on your daily balance. Whether starting out or growing your business, any additional funds can help. At the end of each month most banks offset the balance in the account against the costs incurred by the volume of transactions. Check with each bank to see what qualifies as a “large volume of cash deposits”— for some banks it may be hundreds, while others it’s more.
- Will you maintain a minimum balance?
Will your checking account always have a few thousand dollars in it? And will the minimum balance likely be met each month? If yes to both, look for a checking account that offers interest on your balance. Just be sure the account will always meet the required minimum balance. If it’s not likely you’ll meet the minimum balance, spare yourself the fees and stay with a more basic checking account. The minimum balance may differ at each bank, so be sure to check what the minimum balance is for earning interest.
- Are unlimited withdrawals important?
How often will you be withdrawing from the account? If it looks like it will be fairly often be sure to go with an account that offers unlimited withdrawals and transfers. If always having access to your checking account balance is important, then unlimited withdrawals is the way to go. Most accounts with unlimited withdrawals lack some perks of other accounts, such as receiving interest. However sometimes the basic account with no interest, is truly in your best interest.
Like to learn more about MainStreet Bank’s business checking solutions? Discover which business checking account fits your needs at www.MStreetBank.com/checking.