Resources for Small Business Free Checking

A Guide to Small Business Free Checking

If you are a small business owner, you need a checking account to simply and affordably handle your monthly transactions. With a small business free checking account, you will be able to easily access your money and let it grow. Almost every bank offers small business free checking accounts, but selecting the best one for your business depends on what features are important to you. A little research can go a long way toward saving money. Free checking is not always completely free. Some banks charge fees based on the volume of transactions, the types of services you need, and how much money you have in the bank. The best small business free checking account will have few or no monthly fees, excellent customer service, and features such as overdraft protection.

Before selecting a bank and opening a small business free checking account, you will need to consider the following:

1. What is the expected volume of your monthly transactions?
2. Is online banking important to you, or do you prefer your banking in-person or through the mail?
3. How can the monthly service charge fees be avoided?
4. What other cash management and payment solutions are offered to small business owners with a free checking account?

Standard Features of Small Business Free Checking Accounts

Every basic small business free checking account will provide you with a debit or credit card. Many banks will offer ATMs in many convenient locations; however, the frequency of ATMS will depend on whether you choose a large bank or a smaller branch. Typically, there should be no ATM fees when accessing your account. In addition, it is standard for banks to allow up to 150 transactions per month without any additional charge. This is why it’s important to know your business’ monthly transaction volume. Finally, the bank should offer overdraft protection options.

More Services Offered by Banks

If you want more features to your basic small business free checking account, most banks offer other advanced free checking accounts. These accounts have additional fees, but the costs are offset but the additional services and features received. For example, you can enroll in a bank’s payroll services, saving your business the expense of hiring another company to handle it. Your business can also receive analytical reports detailing balances and activity at the account and relationships level. If your bank offers an earnings allowance, the money earned may also offset the costs of these services.

Monthly Fees to Avoid

Keeping a minimum balance requirement or making a qualified debit purchase can help you automatically avoid most monthly charges. The amount will vary depending on your account type. For example, a fee of $20 may be waived if you have $20,000 combined from your business balances (checking, savings and credit). Another way you may be charged fees is if you exceed your monthly transaction cap. You can be charged $0.50 for each additional transaction, which can quickly add up. Reduce the chances of getting a headache by finding an account that matches your volume of monthly transactions.