Finding the right small business checking account, if you don't have one yet or are in the market for one, can be a little like asking someone to go steady. After all, while you and your checking account can break up later, it isn't easy -- all those automatic deposits and withdrawals to cancel, and the shifting of funds from one account to another -- so obviously you want to get it right.
So if you're going to choose a new, or your first, small business checking account, there's plenty to consider first. Remember, there are a few important questions you should ask yourself before you begin forking over your company's revenue.
Small Business Checking Account, Question #1: Is it free? That may not matter to you, and as banks are increasingly trying to compensate for charging fewer overdraft fees to customers, this may not be as common of an option as it is has been. But some banks offer free checking accounts to small businesses, so you should definitely look for them and ask around. That said, some of the small business checking accounts that
are free come so heavily laden with fees, you might be better off taking one with a monthly maintenance fee and forgoing some other charges. Either way, that brings us to the next question you should ask.
Small Business Checking Account, Question #2: What kind of fees does this small business checking account come with? For instance, does the bank charge for cash deposit processing? We think it's kind of evil for a bank to process money that a business is entrusting to it, but plenty of banks do charge -- or more typically, they'll let you put in some money for free every month, but then when you get to a certain amount, like $3,000 in cash, they'll start charging you a fee. Or maybe everything's free up until you've had up to, say, 325 transactions, which seems fair,
and is the case at Wainwright Bank with their small business checking account; Wainwright, FYI, is a community bank in Massachusetts. So rather than just blunder into a small business checking account, ask about those fees first.
Small Business Checking Account, Question #3: Is the bank insured by the FDIC? Probably (and it better be).
Small Business Checking Account, Question #4: Will your small business checking account offer you overdraft protection? Honestly, you pay enough in fees; if you can't get some simple overdraft protection, walk out and find another bank.
Small Business Checking Account, Question #5: Does your bank -- either through the checking account or in conjunction with it -- offer the other types of services you would expect to get with a small business checking account? For instance, do they have payroll services? Will they help you with merchant credit card processing? Do they offer lock box services? Can your bank help you get an SBA loan? And, really, as you ponder all those questions, keep in mind that many banks offer small businesses more than one type of checking account. So, like dating, don't just fall in love with the first one you meet. Even if you are attracted to the small business checking account your bank is offering, there may be another one right around the corner you like even better. It's a rule applicable to dating, oceanography and even bank accounts: There are always more fish in the sea.