Best Bank For Business Checking Accounts – What to Look For

Owning a small business usually means wearing many hats – as head of sales, production, office administration, payroll and yes, accounting. Choosing a business bank is often done impulsively. Many business owners look for one that is near their place of business or their home – or one that is on the way to work. Others choose based upon fancy advertising or a catchy slogan. Still other business owners might see a featured special offer and just make a split decision to choose that bank.Truth is, most small business owners feel that they are just too busy to take the time to choose the very best bank for business checking accounts.However, if you think about it, choosing wisely can mean the difference between finding a business ally and ending up stuck with a fee-hungry institution who seems like they merely are out to increase their annual profits at your expense.If you are looking for the best bank for business checking accounts, here are some tips on what to look for:1. Make sure they are FDIC-insured:This one is pretty obvious, but not being FDIC-insured should be an instant disqualifier for any bank you are considering. You see, the bank that you end up choosing may not necessarily be one of those big banks with the large advertising budgets who place ads in major newspapers and make flashy TV commercials. In fact, your business may best benefit from becoming the customer of a small local or regional bank. This can be a very advisable option. But, all the more reason to ask about whether they are FDIC-insured.2. Be sure you understand their fee structure:The banks you consider may tell you they offer free business checking. That’s all fine and well, but make sure there is no catch. The catch, in many cases, is an over-the-top fee structure related to any number of regular bank services.For example, some banks charge fees relative to your average daily balance, or they require a minimum balance during the course of a given month. Others charge for processing checks after granting you a certain number of free transactions. Be sure to ask probing questions about all of the possible fees you could encounter while a customer with the bank, given the anticipated banking habits of your particular business.3. Understand, in particular, their overdraft policy:Overdraft fees have become a big money drain for personal and business checking accounts alike. The need to have to pay large amounts of money to your bank in overdraft fees can usually be traced back to participation in overdraft protection programs. These programs, while sounding benign or even helpful to the customer, can actually be structured in such a way that bank customers end up spending more each month than if they had not been enrolled at all. Be sure to inquire carefully with your prospective business bank about their overdraft policies.4. Find out whether they offer additional business services:One of the biggest potential benefits of being a business banking customer is having access to other valued-added bank services, such as payroll services and small business loans. Make sure to check out the full range of services available to you as a bank customer.Resisting the temptation to impulsively choose a business bank based upon geography or clever advertising can pay off. Spend some time doing your homework and you will increase your chances of finding a bank that will satisfy your business needs for years to come.

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