7 Tips for Choosing a Business Bank Account

February 15, 2023

Bank accounts are an essential tool for managing your finances and accessing a wide range of financial services. From depositing paychecks to paying bills and making purchases, bank accounts offer convenience, security, and peace of mind.


But they’re not just a place to store your money – business bank accounts can also help you achieve your financial goals, whether saving for a rainy day or planning retirement.


In short, business bank accounts are essential for managing your finances and achieving your goals. Whether you’re just starting or looking to take your finances to the next level, a bank account is a great place to start.


The question is: How do you choose a business bank account?


Tips for choosing a business bank account

1. Consider your business needs

Every business is unique, so choosing a bank account that meets your specific needs is essential. When selecting an account, consider factors like your business size, transaction volume, and cash flow requirements.

2. Check for fees & requirements

Most commercial checking accounts include monthly service charges and minimum balance limitations. Typically, business accounts are subject to the following fees and guidelines:


  • Maintenance fees: Some banks will not charge you a monthly maintenance fee on your checking account, provided your balance stays over a specific monthly threshold. Standardized minimums are difficult to pin down across the board for financial firms. You may be exempt from these guidelines if you maintain other banking services with the same financial institution.
  • Transaction fees: If you make more than a certain number of monthly purchases or withdrawals, you may incur a transaction charge. Small companies with a modest number of transactions may not be affected by these fees, but it is important to be aware that they can become an issue in the future.
  • Deposit fees: The amount of money you may deposit or the number of deposits you can make in a given time period may be subject to a daily, weekly, or monthly maximum that incurs a charge if you go above that amount or number.

Fees can eat into your profits, so it’s important to choose an account with low fees. Look for accounts with no or low monthly maintenance, transaction, and ATM fees.

3. Check for deposit limits and compare interest rates

If you deal with a lot of cash or checks, make sure to choose an account with high deposit limits. Some accounts may limit the amount of cash or checks you can deposit each month, so it’s important to check this before opening an account.


Furthermore, if you plan to keep a large balance in your account, look for an account with a high-interest rate. This can help you earn more on your deposits over time.

4. Consider online banking features and integrations

Online banking can save you time and make it easier to manage your finances. Look for accounts with features like online bill pay, mobile banking, and remote deposit capture.


If you use accounting software, look for an account that integrates with your software. Automating your financial processes can help you save time and avoid errors.

5. See for Merchant credit card processing

You must have merchant services if you want to take credit card and debit card payments from clients. Although there are third-party processors who provide this service (and often at reduced charges), a bank may be the most practical and time-efficient option.


See whether the bank you’re thinking about has merchant processing services. And if their terms and charges are more favorable than those of other suppliers.

6. Study their website and mobile apps

Many users nowadays expect to be able to access their accounts and conduct financial transactions online. All websites are not created equal when it comes to user-friendliness and reliability.


Try out the site and see if it fits your needs. You may use the app to check your balance, make transfers, pay bills, and see your cash flow, all from the convenience of your mobile device. Make that the app syncs properly with your gadget and runs smoothly.

7. Location

Think how close the bank is to your house, business, and travel destinations. Do you need the option of daily or weekly deposits? Or do you often get cash for your company? Do you ever need certified checks issued by a bank? And do you often travel for business and need access to free national ATMs?


While choosing a choice, take into account the type of your company and how often you will need to visit the bank. Make your decision based on how often you need to visit the bank physically. In the same way, if you go across the country, you’ll need a bank you can trust from coast to coast.


Role of bank accounts in your business

At their core, bank accounts are a safe and secure place to store your money. They provide protection against loss or theft and are typically insured by the government, giving you peace of mind that your funds are safe.


But beyond that, bank accounts offer a range of features and benefits that can help you manage your finances more effectively. For example, many accounts offer online banking, mobile apps, and other digital tools that allow you to check your balances, transfer funds, and pay bills from anywhere at any time.


Bank accounts also provide access to various financial services, such as loans, credit cards, and investment products. By establishing a relationship with a bank, you can build your credit history, apply for loans at favorable rates, and access investment opportunities that can help you grow your wealth over time.


Wrapping up

Choosing the right business bank account is essential to your company’s finances. We are optimistic that after reading this blog, you have a fair idea of how to choose the right bank for your business needs.


However, if you still have any questions, why not consult experts like GJM & Co.? Our expert professionals will help you identify your business’s banking needs, explain the different bank account types, and assist you in making the right choice.


We will also go a step ahead and help you with other finance and business-related needs, such as income tax filing, bookkeeping, accounting, creating p&l statements, and more.


Should you have any queries or need consultation, Schedule a Call today or write to us at info@gjmco.in.