This article will help you select an online business bank account during this time of rising bank fees and charges.
You may already have a personal bank account, but you need a separate bank account for your business. This is to segregate personal from business transactions. This separation of the two activities is essential for financial control of each separate function and also for the preparation of income tax and any other statements and reports.
An online business bank account is the way of the future. Many of the functions of business, including bank accounts, are possible to do online more efficiently than any other way.
It will probably be lower cost than a “brick and mortar” bank account. It can be better adapted to online banking than a traditional bank with some online features.
Does it have to be an online bank account, or will regular checking work? Businesses often start and operate with just a checking account. An online account may help you separate business income and expenditures into categories to use for tax and control purposes without buying accounting software.
Here is a list of banking account features, requirements and limitations. Use this list to consider what you might need to have in a banking account, or accounts.
Account types – checking and savings
Minimum balance requirements
Limitations on transactions -
number of checks, debit transactions, or bill payouts per month
Overdraft protection – how is it set up?
Transfers of money between accounts
Linking to other accounts
Fees applied - to deposits, wire transfers, and other service
(including fees for over-drafting, late payments, etc.)
Interest paid on accounts (if any)
Period for a deposit to be available for checking
Remote deposit of checks – by use of a check scanner or
by wireless phone app
Debit cards and credit cards – look at fees and benefits,
such as grace period on purchases
Lending – lines of credit, term loans, equipment leasing, SBA loans
Compare the availability and costs of banking features. Consider what you need and ask questions.
Loans insured by the US Small Business Administration (SBA) may be your best bet when purchasing a home business in the US. If you think you will need a loan, your prospective bank should offer SBA insured business loans.
Online commercial banking services, including:
Business deposit accounts
Business credit cards
Quicken and Microsoft Money compatible
25-day grace period on purchases
Remote deposit of checks using a check scanner (faster than a mobile app)
Certificates of deposit
Bank anytime, anywhere via mobile device, ATM, online and phone
Free online banking, bill pay, mobile banking, Mobile Deposit®.
No monthly service charge, no minimum balance requirements.
Optimized for small, mobile businesses
Up to $5k cash processing per month at no charge
Visa check card for each account signer
Mobile deposit available
Free mobile banking, online banking, and bill pay
5 in-branch withdrawals &/or checks per month
All other transactions unlimited
2 in-branch deposits at no charge
No surcharge at bank ATMs
Online statements included
$100 minimum opening deposit
From BBVA Compass - small business banking features
Delay before deposits are available for withdrawal
Communications with a real person when there is a problem
Higher minimums and fees when you are starting a business -
make sure you understand the initial account operation
Deposits of cash may not be accepted
No brick and mortar banking locations
24/7 customer service
“Competitive” rates and fees
Banking by phone, chat, computer or mobile device
Summary of features advertised by Ally Bank.