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Choosing the Best Business Bank Account: What to Know

A woman checks her business's bank accounts though online banking.


In the business world, having the right banking tools is essential. One of the most vital financial resources for any business owner is a business bank account.

Whether you're launching a startup, running a small business, or managing an established enterprise, selecting the right business banking account can greatly impact how you handle your finances.

Keep reading for tips on choosing the best business bank account to suit your needs.

What are Business Bank Accounts?

A business bank account is a specific type of account designed for businesses to manage their finances. Unlike personal accounts, business banking accounts are tailored to meet the unique needs of businesses.

These accounts help keep personal and business finances separate, making it easier to track income, expenses, and profitability. Additionally, they often come with extra features and services such as payroll processing, merchant services, and higher transaction limits, which are typically necessary for business operations.

How Business Bank Accounts Work

Business bank accounts operate similarly to personal accounts but include additional features designed to support business operations. To open a business banking account, you generally need to provide documentation such as your business license, Employer Identification Number (EIN), and other relevant information to verify your business's legitimacy.

Once your account is established, you can carry out a range of essential financial tasks. You can deposit funds, receive payments from clients or customers via checks, wire transfers, or direct deposits. Payments to suppliers, employees, and other expenses can be made through checks, ACH transfers, or debit cards. Managing cash flow becomes more straightforward with online banking tools that allow you to track and analyze your finances, ensuring your business remains financially healthy.

Additionally, many banks offer access to credit through business credit cards and lines of credit to help manage short-term funding needs. You can also use merchant services to accept credit card payments from customers, which is vital for many retail and online businesses.

What are the Benefits of a Business Bank Account?

Choosing the best business bank account offers a variety of benefits:

1. Professionalism

Using a dedicated business account projects a more professional image to clients and customers. Separating personal and business finances reassures clients that your business operations are legitimate and well-organized, enhancing their trust and confidence in your services or products.

2. Financial Organization

Keeping personal and business finances separate simplifies accounting and tax preparation. This clear distinction allows for easier tracking of income and expenses, ensuring financial statements are accurate and complete, which is crucial during tax season and financial audits.

3. Additional Features

Business accounts often include features such as higher transaction limits, payroll services, and merchant services. These specialized features cater to the unique needs of businesses, such as handling larger transaction volumes, efficiently processing employee salaries, and facilitating smooth credit card payments from customers.

4. Credit Access

Building a relationship with a bank can help you access business loans and credit lines more easily. A strong banking relationship can lead to better terms on loans and credit products, providing your business with the necessary funds for growth, expansion, or managing cash flow during challenging times.

Choosing the Best Business Bank Account

When choosing the best business bank account for your, be sure to consider the following factors:

  • Fees: Look for accounts with low or no monthly maintenance fees, transaction fees, and ATM fees.
  • Minimum Balance Requirements: Some accounts require a minimum balance to avoid fees; make sure you can meet these requirements.
  • Transaction Limits: Evaluate the number of transactions your business conducts monthly and select an account that accommodates this without excessive fees.
  • Online Banking: Ensure the bank provides robust online and mobile banking options for managing your account on the go.
  • Customer Service: Opt for a bank with excellent customer service, including 24/7 support if needed.

Armed Forces Bank Business Accounts: We Mean Business

Which Armed Forces Bank business checking account is right for you?

The best business checking account is the one that works for your business's needs. Armed Forces Bank's Business Checking accounts are designed with cash management solutions that help you simplify processes, maximize capital, and respond to your banking needs. When comparing accounts, consider your business's needs.

Armed Forces Bank offers a variety of business checking accounts tailored to meet the needs of different businesses. The Simple Business Checking account is a low-cost option that includes a free Visa® Business Debit Card, overdraft protection, and unlimited online bill pay for $10.00 per month. It also offers free monthly eStatements and includes 100 of any item type per statement cycle, with a $0.50 fee for each additional item.

For growing businesses, the Business Checking account provides a free Visa® Business Debit Card, overdraft protection, and unlimited online bill pay for $10.00 per month. This account also offers free monthly eStatements and includes 250 of any item type per statement cycle, with a $0.35 fee for each additional item.

The Business Interest Checking account is ideal for businesses looking to earn interest on their balances, with interest compounded monthly. This account features a free Visa® Business Debit Card, overdraft protection, and unlimited online bill pay for $10.00 per month. Free monthly eStatements are provided, and it includes 250 of any item type per statement cycle, with a $0.35 fee for each additional item.

For large businesses, the Analyzed Business Checking account requires no opening balance and allows you to earn credit to offset monthly charges. This account also includes a free Visa® Business Debit Card, overdraft protection, and unlimited online bill pay for $10.00 per month, along with free monthly eStatements.

Let’s Get Down to Business: Contact Us Today

From business checking, savings, business borrowing, treasury services and commercial lending, Armed Forces Bank wants to be your business partner. We love hearing your business successes and challenges and finding ways to fuel your growth.

 

 

Member FDIC

Opening deposit required. Monthly service charge applies. Closing new accounts within 90 days of opening will result in a $20 early closure fee. Free monthly eStatement or $5 paper statement.

All loans and lines of credit are subject to credit approval and require automatic payment deduction from an Academy Bank business checking account. Origination and annual fees may apply. Transaction, penalty, and other fees apply.