Business Checking Key Terms

Look for these terms when opening a new business checking account

Business checking is a specific type of checking service open to different types of businesses through financial institutions. Business checking will include additional services and regulations that differ from a personal checking account. Banks will offer different types of business checking accounts in order to entice customers to open an account with their facility. When companies research different business checking accounts, certain terms will come up time and again.

 

APY

An annual percentage yield, or APY, is the amount of money that you can earn by opening a business checking account with particular banks. The APY will differ depending on the account balance available in your account. Only particular business accounts will allow you to earn APY.
Try: Investopedia has both a definition for annual percentage yield as well as how a person can calculate his or her return.

Maintenance fees

Many banks will advertise that their business checking services boast no maintenance fees. Maintenance fees can consist of a variety of different charges that a bank charges a business in order to use its business checking services.
Try: U.S. Bank has a breakdown of different business checking accounts along with potential types of maintenance fees. Get the low down on maintenance fees at Bargaineering.

Free business checking

Free business checking is a type of account offered to smaller businesses that don't perform a large amount of account functions. These accounts will require a low starting deposit and won't charge any fees to use the banking services.
Try: PNC Bank provides a breakdown of the different components that make up its free business checking account.

Business interest checking

Business interest checking relates to accounts that can earn an APY. The more money that you have deposited into your account will affect the higher interest rate that you will earn. To maintain this type of account without charges, the business owner must retain a minimum account balance.
Try: EverBank provides more information on business interest checking along with a chart with the interest rates a person can earn by opening this type of account.

Minimum balance

The minimum balance is the lowest amount of money that your bank will permit you to have in your checking account at any given time without charging a fee.
Try: Investor Words delves into the meaning of minimum balance and the consequences imposed by banks for not meeting this minimum account balance.

Business debit card

A business debit card is a card that is linked to your business checking account. You can use the card like a regular credit card and have the charge deducted from your business checking account.
Try: On Provident Bank, you can find the different elements that make up a business debit card.

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