Online Banking

Bank One Corporation Bankrate, Inc Commerce Bancshares, Inc.

Entrium Direct Bankers Ag Huntington Bancshares Inc. Pacific Century Financial

S1 Corp. Wachovia Corporation Wells Fargo & Company

Guide to Small Business Online Banking

Get out of the line and back to making money by banking via the Web
By Greg Brown

Online banking is now a decade old, yet many small business owners have been slow to take advantage of the speed and simplicity it offers. It's not surprising that people are hesitant, but financial institutions have a huge motivator – money – to get you out of their lobby and away from costly tellers. Banking online can be a boon for small business owners who want to:

1. Save time
2. Get better deals on fees
3. Automate payments and planning

Action Steps

The best contacts and resources to help you get it done

Run the numbers Banking online is a good deal, but how good? You should shop around for low-minimum offers that give you the best deal according to how you run your business.

I recommend:  Bankrate.com had done an overall study of how much cheaper online banking can be. You'll still need to compare offers, but this is a good overview.

Your bank probably already has a plan for you Consumers and big business were relatively quick to pick up on banking online. Now the attention is turning to getting small businesses connected.

I recommend:  Bank of America, Wells Fargo, Citibank, Wachovia and Regions are all piling on with small business offerings.

Automate your record-keeping Banks have a big interest in keeping your involved day to day so that you think of them when you want a credit line or loan. They do this in part by making it easy to download transaction records to software you likely already use.

I recommend:  The three most common download formats are for Quicken, QuickBooks and Microsoft Money.

Get your payroll, taxes and retirement planning done Thanks to broadband speed and advanced security, banks have begun to up-sell services that were once pricey extras.

I recommend:  Bank of America has an extensive suite of services for small business, including payroll. Regions goes so far as to offer cash management, essentially an automated back office. Most offer business credit cards you can manage online, as well as 401(k) and pension plans.

Save even more by going completely virtual In the late 1990s, a bunch of startup banks crowded onto the Web offering nosebleed-high rates to draw people away from bricks-and-mortar operations. Mostly, they lost, but a few battle on, and it can be a good model if you know you'll never need to walk into a branch.

I recommend:  NetBank is still fighting the good fight, and E*Trade Financial has been pushing hard into the space. Traditional banks, like HSBC, Citibank, ING and Keybank, are offering super-high-rate "direct" accounts — if you work with them only online. These are more consumer-oriented but a good place to park cash.

Tips & Tactics

Helpful advice for making the most of this Guide

• Automatic bill paying is a blast. No stamps, no cramps. But, better keep a balance or charges will pile up.
• Use e-mail or mobile alerts to track when checks deposit and clear. It can keep you on top of your money when things get busy.
• Some banks allow you to view several accounts – even information from competitors or retirement accounts – on one Web page.
• If you go online, go completely online. Online banks will issue paper checks for you to anyone in the world, but if you write a check it will be virtually impossible to track online later.