Author Topic: Business checking account tips?  (Read 1462 times)

GU

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Business checking account tips?
« on: June 06, 2017, 11:40:19 AM »
Hi all, anyone have any tips re:  opening a checking account for a small online business?  Are there any pitfalls to watch out for?  Any companies you've had good luck with? 

I can get $300 for opening a Chase business account, but I have to keep at least a $1,500 balance, otherwise it's a $12 charge per month.  Is this a good deal?  Any helpful advice is appreciated.

dandarc

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Re: Business checking account tips?
« Reply #1 on: June 06, 2017, 11:45:55 AM »
How long until keeping a $1500 balance won't be an issue?  At $12 / month, you've got 25 months before you eat the whole signup bonus with the extra fee.

SC93

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Re: Business checking account tips?
« Reply #2 on: June 06, 2017, 12:51:12 PM »
I'd never use a bank. Go to your local credit union. Instead of talking bad about banks, I'll type in below every good thing I can think about a bank.....



























dandarc

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Re: Business checking account tips?
« Reply #3 on: June 06, 2017, 01:19:40 PM »
I'd never use a bank. Go to your local credit union. Instead of talking bad about banks, I'll type in below every good thing I can think about a bank.....
What about a local bank that used to be a credit union?

SC93

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Re: Business checking account tips?
« Reply #4 on: June 06, 2017, 03:50:44 PM »
You realize you just wasted internet ink to write that don't you?

maizeman

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Re: Business checking account tips?
« Reply #5 on: June 07, 2017, 09:47:36 PM »
Whether credit union or bank, for small businesses local banks are SO much better. In the process of moving all of our banking for two startups from one of the big four national banks (the one that isn't citi, chase, or BoA), to a regional bank. Service has been incomparably better. At previous bank, it wasn't uncommon to talk to three different people on different visits and get mutually contradictory answers to the same questions. In addition, now when we hit a road block, I or one of my partners can pick up the phone and get ahold of someone with the authority at the local bank to make decisions and resolve things.
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dandarc

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Re: Business checking account tips?
« Reply #6 on: June 08, 2017, 10:09:52 AM »
You realize you just wasted internet ink to write that don't you?
Serious question - not wasted ink.  If your credit union reorganizes as a bank, what do you do as Mr. "I will never use a bank"?  Does the structure matter - my current bank was a credit union, then a mutual company, finally last year they reorganized to your more typical corporation.  So far, I haven't noticed any difference in level of service, so I haven't changed.  But then, I'm not the one claiming "ALL BANKS ARE BAD".

johnhenry

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Re: Business checking account tips?
« Reply #7 on: October 05, 2017, 03:03:03 PM »
You realize you just wasted internet ink to write that don't you?
Serious question - not wasted ink.  If your credit union reorganizes as a bank, what do you do as Mr. "I will never use a bank"?

Why would you ever use a bank if you had the option of a CU?  Credit Unions are not-for-profit, and member-owned, allowing democratic participation from their members.

I was a member of the only locally owned bank in town for over a decade before I did some research and out found which rich folks in town owned most of the shares. Nothing scandalous. But decided there's no reason to pay other folks to create credit for myself the rest of the community!

  I cancelled my accounts there and now do business at 2 of the credit unions in town.  My only regret is that I didn't switch earlier.  The interest on savings (and checking) is consistently higher, the interest (and closing costs) on business and personal loans are lower and most importantly I know I'm not paying for the fancy landscaping and glossy magazines of the bank... and (almost certainly) the higher salaries of executives and profits to shareholders.  I am a shareholder at the CUs and I realize a small "return" with every small amount I save there.

lexde

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Re: Business checking account tips?
« Reply #8 on: October 05, 2017, 03:20:27 PM »
Just as a sidenote, Wells Fargo is currently running a promotion for their business checking account. All you need is a $500 deposit within 45 days of account opening to be eligible for the $300 bonus. The account is fee free if you maintain a $7500 balance or use 10 debit transactions each month. I keep mine fee free by loading $.50 Amazon gift cards onto my Amazon account since I will use the $5 on Amazon at some point anyway.

MustachioedPistachio

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Re: Business checking account tips?
« Reply #9 on: October 05, 2017, 09:28:27 PM »
Regardless of CU or bank, keep an eye out for transaction-based fees. Some have a fixed number of transactions per month, and exceeding the limit will cost you on a per transaction basis. Some charge fees for certain types of transactions, incoming and outgoing. Number of checks, minimum balances, direct deposits etc etc.

If you don't expect a shitload of transactions hitting your account, you should be just fine. Or if you use an intermediary service like PayPal to handle the day-to-day, just watch for the monthly fee amount.

From a UI and functionality perspective, some banks' online business portals differ DRASTICALLY from the personal ones. And not in a good way. Seems like a lot of smaller local banks or CUs use a version of a third-party online banking platform (not bad, per se, just...clunky).

Even big bad BofA isn't too much of a hassle to deal with, anecdotally speaking. Sometimes when I would stop by a branch to deposit cash, I'd pop over to one of the "personal bankers" or enhanced tellers or whoever and just asked them about my accounts. S/he'd pull it up, I'd ask about the kids or the divorce or whatever, and "oh hey, by the way, can we get that monthly charge removed and those wonky overdraft fees that hit before our deposit?" *poof* fees gone. YMMV. :)

SnufferBottle

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Re: Business checking account tips?
« Reply #10 on: October 06, 2017, 10:27:34 PM »
Hi all, anyone have any tips re:  opening a checking account for a small online business?  Are there any pitfalls to watch out for?  Any companies you've had good luck with? 

I can get $300 for opening a Chase business account, but I have to keep at least a $1,500 balance, otherwise it's a $12 charge per month.  Is this a good deal?  Any helpful advice is appreciated.

I've gone through a lot of banks (Wells Fargo, Chase, KeyBank, Discover, local credit unions) - honestly Chase has the best tools, most locations, and overall I'm very happy with them even if they are a behemoth. Checking accounts are pretty standard across banks, I'd just go with whatever is convenient for your location.

If you go with a big name bank don't waste your time with a "savings account" though, it pays nothing.

jeebs1

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Re: Business checking account tips?
« Reply #11 on: October 26, 2017, 07:19:19 PM »
I've had a pretty good experience over the past year with Capital One's Spark Business Checking. It's great if you like everything online and not ideal if you deal a lot with cash, but I almost never do.
In fact, I don't think I've paid a single fee to them for any basic service (transactions, deposits, or accounts) but it changes if you keep low dollar amounts in the account or don't have a credit card with them.
« Last Edit: October 26, 2017, 07:54:16 PM by jeebs1 »