Business banking accounts are those accounts that are equipped to handle all the financial and monetary transactions related directly or indirectly to your business. Establishing business bank accounts helps to keep your personal finances and expenses completely separate from your business which leads to better organization in both aspects of your life. You will be able to hold the best business bank account by scouting the market for the kind of options available to you and choosing the one that suits your need perfectly. These accounts also help to raise your business profile and help to create potential credit for your business in future. Some of the guidelines that should be kept in mind before opening business banking accounts have been enumerated below.
Instead of opening a business bank account in a conventional bank, you can consider opening it in a credit union located in your area. These unions offer accounts at negligible rates for small business owners.
Even if certain banks are providing you the option of opening business banking accounts for free, you should be wary of additional or hidden costs that may be charged later on and may not be a part of the agreement that you sign. You should specifically ask for such information before opening a business banking account with a certain bank.
When opening business banking accounts, you should go a step further and apply for a credit card for your business too. You should only open business banking accounts in a bank that offers you easy access to a credit card and does not place strict conditions for the same. A credit card for your business can be instrumental in helping provided the required assets for your business in a timely manner whenever required.
It is usually at the time of starting your own small business that you are likely to require a business banking account. At such a time, it may not be feasible for you to spend extra money on banking fees. For this reason, there are certain banks in both the UK and the US that are known for providing free business bank accounts to such business proprietors.
Here are some of the ways in which you can access a free business banking accounts. Bank of America is one of the banks that offer a free business banking account on the condition that you preserve a certain amount of money on a permanent basis in your account. Citizens bank also offers a free business bank account. However, it places a condition on its users to conduct only two hundred transactions in 30 days. If you need to conduct more than this amount in a certain month, you are not completely restricted from doing so. The bank calls for a nominal fee of fifty cents in case you overstep this limit. HSBC is a bank that provides free business accounts without charging any kind of fees. There are no limits on the number of transactions that you are allowed to perform.
A person should be very careful when deciding on the subject of where or whom to trust with his hard-earned money for safekeeping, investment, or financial management. The most common and the most stable financial and investment partners are banks. Banks allow for debit transactions like cash withdrawals and checks; credit transactions; cash processing; direct banking such as deposits and savings account; account transfers and bills payments; and the most recent, internet banking.
These ordinary functions of banks are imbued with public interest owing to the fact that that they hold the people’s money. Banks need to maintain sufficient amount of reserve funds to ensure payment to the people of their money. Banks do this by charging interests rates, charges, costs, and fees for the respective banking transactions. On the other hand, there are equally reliable and efficient free business banking services that people can avail.
The most common avenue for free business banking is through the internet. One could see that the major service providers in internet business banking are still the large banks currently dominating the industry all over the world. To avail, one only has to apply through the bank’s official website, or via a telephone call. As soon as the application is granted, a person can already enjoy easy, fast, convenient, and reliable banking transactions with online free business banking.
Here are essential benefits to availing free business banking. A free small business banking generally does not charge ordinary banking services, but they ask minimal amounts to pay additional services like cash processing. This is a great option especially for small and start-up businesses, which are still setting up accounts and earning profits.
A free business banking follows strict guidelines and measures to ensure privacy and security of banking transactions, particularly those on the matter of the member’s personal and account details.
A free business banking provides convenient and reliable 24-hour technical support. It also offers a wide selection of free software guides and products such as those relating to business financial planning and accounting.
Simply put, a free business banking helps manage and organize a person’s personal finances as well as his business finances. It assists in tracking the business proprietor’s cash flow, i.e. profits and disbursements. It is very helpful for budgetary and financial planning purposes.
One must be warned though that while the banking transaction is denominated as free business banking, everything is not absolutely free, and can only be availed of up to a certain period of time. It is advised that before signing up for an account, one must first compare the extent of the free period offered by various banks.
To illustrate this, HSBC, Lloyds, and the Cooperative banks offer an 18-month free business banking period, while Barclays, the Royal Bank of Scotland, and Natwest offer 24 months. It is said that Santander Group, which took over the Abbey and Alliance and Leicester banks, offers unlimited daily free business banking, under certain conditions. Also, it is important than a person asks what happens after the free banking period ends.
Lastly, it is likewise suggested that one apprises himself of what particular transactions are covered by free business banking, and which ones are not included. Put in another way, a person must clarify with the bank regarding the transactions they freely provide, and which ones require payment of interests, costs and charges, and how much.