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Money Management Blog

What is the Best Business Checking Account for Your Business?

Published: April 17, 2018

Here are some critical questions to consider in making your decision:

  1. Do you mind paying a monthly checking account fee or do you want it to be completely free?
  2. Do you want to earn interest/dividends on your account?
  3. What types of things do you need to have attached to your checking account to efficiently and effectively run your business (e.g., merchant services, credit card, etc.)?
  4. Do you need free access to your account 24 hours a day, seven days a week?

Let’s address the first question:  Do you mind paying a monthly fee? 

Of course, most businesses do not want to pay any fees for a checking account.  Many financial institutions today offer free business checking; however, be sure to read the fine print when you embark on signing up for free business checking.  In many instances, “free” business checking means that you won’t pay a monthly fee or any type of transaction fee.  But, depending upon the financial institution, you may have to maintain a minimum balance requirement or have some sort of direct deposit requirement to your checking account to waive a monthly fee.  At Southern Bank, we offer a Free Small Business Checking Account with no fees and no hidden costs (click here to learn more).  

Let’s move on to question #2:  Do you want to earn interest/dividends on your account? 

Again, financial institutions will usually provide you with the opportunity to earn interest/dividends on your account based on a minimum balance requirement, or some type of other relationship you may have at the financial institution (e.g., business loan). Make sure you understand all of the parameters of the relationships requirements and whether or not that is right for you.  For example, if you carry a pretty low balance in your checking account, a $10,000 per month requirement to earn dividends and waive the monthly fee is not going to be the right account for your business. Click HERE to learn more about Southern Bank’s Commercial Checking Account and Business Interest Checking Accounts.

Question #3 gets into a little more depth about your business needs:  What types of things do you need to have connected to your checking account to efficiently and effectively run your business? 

Many financial institutions provide merchant services, payroll services, business credit cards, among others, and may create these services into an overall package from which business owners can choose.  It is important that you only purchase what you need.  If you have one employee, would payroll services be a necessary part of your business package?  What about merchant services – do you take credit cards at your business?  Whatever the case may be, take the time to match your needs with the best financial options available.  To learn more about the business checking packages available at Southern Bank, click HERE.  

And finally, question #4 is pretty simple to answer for most businesses (especially small businesses):  Do you need 24 hour access to your accounts? 

In most instances, the answer is a resounding “yes.”  It is vital for most business owners to be able to access financial information outside of their business hours to prepare for the next day, week or month.  Having access to funds allows freedom to transfer funds, make deposits, check the balance of the account, and conduct other important financial business.  Make sure you understand the fees behind the use of online banking, ATMs, writing checks, and even using a debit card.  If you don’t understand a fee, ask your representative about it.  Don’t leave any stone unturned!  Depending on the financial institution, it might also include free unlimited check-writing capabilities, free transfers, a free ATM or check card, free ATM transactions, and free checks as part of the “free” 24-hour access to your business checking account. The beauty of having 24-hour access to your account is that you really don’t have to leave your office during the day to conduct your financial business, and you can actually catch up on financial matters at home if you need to. At Southern Bank, we are proud to offer several services that allow you to stay connected to your accounts whenever you need them.

Only you can decide what features of a business checking account will best serve the needs of you and your business.  Sometimes there are even special discounts or fee waivers for those who have their personal accounts and business accounts at the same financial institution.  For more information about the business checking services, visit us at BankWithSouthern.com or stop by your local branch