Put Your Business Checking Account to the Test


In these competitive and challenging times, business owners are looking at everything from office supplies to utility costs for ways to reduce expenses. One area for cost reductions that may not be as obvious involves banking costs. You may be surprised to learn that having the wrong checking account can result in extra fees.

Take a closer look at your banking needs.

One area for cost reductions that may not be as obvious involves banking costs. You may be surprised to learn that having the wrong checking account can result in extra fees.How do you know if you’re in the right account for your needs? Well, you can start by analyzing your account statements or viewing your account online to determine how much you’re currently being charged. Then consider the type of checking account you have. Ask yourself these questions:

  • How many transactions (deposits, debits and withdrawals) do you make each month on average?
  • How many transactions does the checking account you’ve chosen allow per month? If you have a checking account that allows for 200 transactions, are you exceeding that number? If that’s the case, your financial institution may charge you a fee for transactions in excess of that amount. That can really add up.
  • What’s the monthly fee you are charged? Many financial institutions may charge you a monthly fee to maintain the account. Some will waive that fee when you maintain an average monthly minimum balance. Take a look at your balances to determine where you fall. If your balances are significantly lower than the minimum balance required, you might be in the wrong checking account.
  • What are the other fees you are assessed? For example, is your business frequently charged overdraft fees? If so, you may want to consider having overdraft protection on your account, which will save you the added expense of costly overdraft charges.
  • What other options does your financial institution offer? For example, does it offer free business checking? More and more financial institutions are starting to offer this alternative. Look carefully at the rules and regulations of your checking account to see what requirements you have to meet to qualify for free checking.
  • What is your relationship with your financial institution? Do you have multiple accounts with them, including checking accounts, savings accounts, business loans or mortgages? Many financial institutions have developed “relationship”accounts that reward you for the business you do with the institution. These accounts allow you to combine your balances in order to meet minimum balance requirements and qualify for added benefits. Benefits might include higher interest rates on deposits or lower rates on loans; free services such as traveler’s checks; no-annual-fee credit cards, etc.

Contact your account representative, who can help you look carefully at your financial institution’s offerings and select those that best meet your needs. By answering these simple questions, you’ll have a better handle on your checking account needs, and could potentially save hundreds of dollars on your banking each month. That can really add up.

 

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