Learning, Sharing, and Teaching > Ask a Mustachian
Best business checking account?
jeromedawg:
Hey all,
With my wife and I looking at her parents' business checking account while they're gone, we've noticed they get charged tons of stupid fees and that keeping the money at this bank itself is a money drain on them. I think they pay anywhere between $40-60+ that goes to all sorts of fees at the bank they're at!
Any suggestions on a good business checking account to go with where a priority would be in-person service with a good number of banks around they can access here in Southern California? They do both cash and check deposits and would likely have trouble trying to use a phone to deposit checks... I was looking at US Bank Silver Business Package: https://www.usbank.com/small-business/checking/silver-business-package.html but wanted to see what some of you might use/recommend.
chasesfish:
You need to request an account analysis statement from their current bank. Business accounts are priced based on total activity (number of items) plus any special technology things they're using, like ACH and Wire Service.
Most banks provide small business accounts for free or with minimal qualifiers if the total item count is below 500.
jeromedawg:
--- Quote from: chasesfish on October 17, 2017, 06:55:43 AM ---You need to request an account analysis statement from their current bank. Business accounts are priced based on total activity (number of items) plus any special technology things they're using, like ACH and Wire Service.
Most banks provide small business accounts for free or with minimal qualifiers if the total item count is below 500.
--- End quote ---
We sort of have an idea of their activity per statements provided from the current bank. Generally they don't exceed 150 transactions (it's closer to 130) per month. Cash deposits may vary pretty widely though but they do quite a bit of check-writing. Even if they got the US Bank Silver Business package and exceeded the limits for cash units and free transactions, I'm pretty sure they wouldn't be paying anywhere close to $40-60 per month.
They are using credit card readers/swipe machines but I think those are provided by another vendor and they just have the direct deposits go into this account.
Hotstreak:
--- Quote from: jeromedawg on October 17, 2017, 10:14:55 AM ---
--- Quote from: chasesfish on October 17, 2017, 06:55:43 AM ---You need to request an account analysis statement from their current bank. Business accounts are priced based on total activity (number of items) plus any special technology things they're using, like ACH and Wire Service.
Most banks provide small business accounts for free or with minimal qualifiers if the total item count is below 500.
--- End quote ---
We sort of have an idea of their activity per statements provided from the current bank. Generally they don't exceed 150 transactions (it's closer to 130) per month. Cash deposits may vary pretty widely though but they do quite a bit of check-writing. Even if they got the US Bank Silver Business package and exceeded the limits for cash units and free transactions, I'm pretty sure they wouldn't be paying anywhere close to $40-60 per month.
They are using credit card readers/swipe machines but I think those are provided by another vendor and they just have the direct deposits go into this account.
--- End quote ---
Business accounts are a product where all costs are shown up front, and you pay based on what you use. First find out what the current bank is charging them for, then compare to other banks pricing (or consider cutting back on expensive services). Cash can sneak up on people who don't realize that there'S a substantial charge on their "free" account when they deposit too much of it.
jeromedawg:
--- Quote from: Hotstreak on October 17, 2017, 05:14:43 PM ---
--- Quote from: jeromedawg on October 17, 2017, 10:14:55 AM ---
--- Quote from: chasesfish on October 17, 2017, 06:55:43 AM ---You need to request an account analysis statement from their current bank. Business accounts are priced based on total activity (number of items) plus any special technology things they're using, like ACH and Wire Service.
Most banks provide small business accounts for free or with minimal qualifiers if the total item count is below 500.
--- End quote ---
We sort of have an idea of their activity per statements provided from the current bank. Generally they don't exceed 150 transactions (it's closer to 130) per month. Cash deposits may vary pretty widely though but they do quite a bit of check-writing. Even if they got the US Bank Silver Business package and exceeded the limits for cash units and free transactions, I'm pretty sure they wouldn't be paying anywhere close to $40-60 per month.
They are using credit card readers/swipe machines but I think those are provided by another vendor and they just have the direct deposits go into this account.
--- End quote ---
Business accounts are a product where all costs are shown up front, and you pay based on what you use. First find out what the current bank is charging them for, then compare to other banks pricing (or consider cutting back on expensive services). Cash can sneak up on people who don't realize that there'S a substantial charge on their "free" account when they deposit too much of it.
--- End quote ---
So this particular bank charges them for each check they deposit and each check they write. I think there's literally a fee for every type of transaction. There are no "freebies" that they give you like US Bank or many others who give a limit of 50, 100, 150 or more transactions. Of course, many of those are based on minimum amounts in the account but I think US Bank might be an exception. The "analysis fees" this current bank charges is a collection of all the fees they're assessed for every transaction they incur on the account whether it's a debit or credit. It's pretty awful.... I think they may resist change though because they've been "used to doing it this way" for a long time. I don't know how long they've been assessed these fees but the bank has undergone several name changes too in the past several years. They may have added these fees along with all that and now it's more of a money sink to even hold money at this bank.
Navigation
[0] Message Index
[#] Next page
Go to full version