The other day, I was reading a thread in a closed Facebook group and the discussing focused on the poster asking about which bank they should use for their business needs. As you can expect there were over 50 comments of people sharing why they love their bank and referral links. Let me first say, I have banked with a plethora of different banks such as; First National Bank, Bank of America, Chase, Citi Bank, Navy Federal, Wells Fargo, and a couple more to just name a few. As we all know everyone is not everyone’s cup of tea and that goes the same for banks.
First and foremost, your personal and business accounts should be separate. There are no excuses or reasons you can give as to why they need to be the same account. If you, have yet to determine your legal entity and that is the stall, I would suggest learning the difference from Sole Proprietorship vs LLC. When my lawyer enlightened me on these several years ago, my finances have always been important to me. Some banks might have a larger minimum to open a business checking, but always remember that fees such as banking, transaction fees, or things of that nature are tax write-offs. That is why it is important to attend those free IRS tax workshops to learn about that.
What Do You Need
What exactly are you needing from your business banking? That’s an issue most people have when it comes to selecting the right bank for their needs. I am super happy to refer people to Navy Federal, but that bank is not for everyone. Here are some things you might want to consider when it comes to opening an account;
- Banking hours
- Free Online Banking
- Actual Bankers – more banks are moving away from actual bankers to just machines
- Interest Rates
- Transaction Fees
- Programs for small business owners
- Account Fees
- Fraud Protection
Two years ago, I left a big bank that I had been with for over a decade because of several issues such as; fraud, transaction fees, monthly fees, and much more. I felt I was paying the bank to hold my money and then when fraud happens five times in one year it was time for me to close my accounts with the company.
Big Banking Vs Credit Union
There was a time when I was a “big supporter” of larger banks because I felt that I could go anywhere and there would be a bank I could walk into if I needed anything. However, in the days we live in it’s not often people go to the actual bank. You can do everything in your mobile app. In addition, big banks are letting more people go and using machines to handle all types of transaction. Yes, you can find a Chase or Bank of America in almost every time, but I have learned that credit unions pack power too. I believed that big banks could help me more, but credit unions are just like me when it comes to business. They are considered the little guy, but they truly do have a lot to offer. Once again this goes back to what your needs are with your business.
Building Relationship With Banker
Last year, I opened my account with Navy Federal when they were running a promotion to earn $50 for new accounts. In the last year, I have seen every banker and staff member care for who I am. We joke about all of us using Dave Ramsey method, my business, and teaching the littles in my life about money management. Building a relationship with your banker is extremely important and I can say they understand this. You should not just be another dollar sign when walking into your bank. They should care about your financial goals and help you get on the right track. I know this because prior to coming to Navy Federal my banker Liz made sure to help me with those things.
Finding the right bank for your small business needs will take some research on your part. A plethora of banks will offer you so much to sign with them, but make sure you ask around.