A Guide to Different Business Checking Account Types and Their Advantages
Do you know which checking account is best for your business?
Checks are still a vital part of doing business, despite the overwhelming influence of the internet and growing popularity of online payment services. While many Americans may use an app to pay a friend for something simple like dinner, businesses need checks to pay for services, utilities and rent, among other larger payments. Businesses also cash a good amount of checks from their vendors and clients, emphasizing the need for a checking account.
Regardless of how your business uses checks—and it's likely you do—it's important to understand that checking accounts are far more than just pieces of paper. Different checking account types can provide various advantages to companies. Here are some examples of those accounts and how they can play a positive role in managing finances:
Basic checking accounts
For businesses that need a no-frills way to pay bills and manage their money, basic checking accounts are the best options. Because basic checking accounts are the most standard package, they can generally be opened with a low minimum deposit and kept active with a low balance. Some basic accounts may come with a maintenance fee, but offer unlimited check-writing, so check the fine print. The details of the basic checking account are important to pay attention to, as you'll want to find the most cost-effective and convenient way to manage your business finances. One thing to be sure to look for in any checking account option is the ability to deposit checks via mobile capture from a smartphone. Trips to the local branch can sap valuable time for business owners, and a mobile deposit solution is a big plus for any checking account.
Interest-bearing checking accounts
This checking account tier rewards businesses that keep a high balance because they accrue interest earned on deposits. Opening an interest-bearing account makes sense in the recent economy. After years of low rates to power the recovery, the Federal Reserve has begun raising rates and will continue doing so, which means firms that place money in interest-bearing accounts stand to earn more. Rates used to be near zero, netting businesses nothing on their deposits, but now your money can do more in a interest-bearing checking account than before. Such accounts often come with a number of perks like generous transaction allowances, access to fee-free ATM networks and premium interest rates. However, keep in mind, interest-bearing accounts are usually designed to provide most benefit when kept with a high balance.
Businesses have a wide variety of financial needs, so getting all the services they can from a cost-effective bundle is a huge advantage for companies. Such bundled accounts combine a range of commercial products that can be added to checking. For instance, through a bundled accounts, businesses can gain access to treasury management services and consolidate their balances to save on fees.
Checks are integral to operational finance for many reasons, so finding the right checking accounting to grant you the benefits you desire is essential. Talking to Vectra Bank today can help identify that perfect fit. We offer a variety of anytime, interest-bearing and demographic-specific checking accounts (like for seniors and veterans). Contact us today for more information.