If you’re reading this, chances are you’ve already chosen to make the switch to a business account from your personal one. From improving credibility for your startup, keeping your personal and business taxes separate to establishing business credit, the benefits of a business account are enough to convince anyone to make the switch.
But what are the things worth factoring in when making the right choice? Often, this step leaves many entrepreneurs and startup founders stuck, along with the wide array of options available in the market.
Fret not — we’re here to help you in this process. Here are 10 key considerations to take note of when choosing the right business bank account.
What to consider when choosing the ideal business bank account?
- The credibility of the bank
- Fees and charges
- Account features and services offered
- Online banking options
- Introductory bonuses and offers
- Interest rates
- Software integrations
1. The credibility of the bank
Picture this: when entrusting a valuable item to someone, you would want them to take care of it wholeheartedly and ensure it doesn’t get misplaced. In the same way, you’d also want to put your money in the hands of a credible and trustworthy financial institution. No matter where you are in the world, bank reputation matters.
In the event of a global crisis like an economic recession, reputable banks will remain strong in the face of adversity, protecting your money in turn. Being associated with a bank with an unwanted reputation can cost you the credibility of your business, being blacklisted from payment processors, and possibly even a loss in funds.
2. Fees and charges
As a business, you would naturally lean towards a digital business account with low monthly fees or waivers to help save you money. Listed below are some of the most important fees to look out for:
- Maintenance fees
- Fall-below fees
- Minimum balance fees
- Overdraft fees
- Withdrawal fees
- Foreign transaction fees
- Account closure fee
Before committing to a particular business account, ensure that all the fees are displayed to avoid being charged for unnecessary and hidden costs.
3. Account features and services offered
On top of a bank’s credibility and fees, the various features and services offered by a bank are the next thing to look into. This could either make or break the way you manage your finances. A few examples of some core features to keep an eye out for are:
- Expense management
- Bill pay feature
- Virtual debit card access
- Check-writing services
- Wire transfer services
- Multi-currency transactions
- 24/7 customer support
Ensure that the services offered by your bank are always aligned with your needs.
4. Online banking options
For tech-savvy and modern business owners, having access to online banking options is an absolute must. The ability to make transactions, check your account balance, or approve payments on the go gives founders the flexibility and control they need to manage their finances anywhere, anytime.
Having these features allows you to receive account updates in real-time and save on various kinds of service fees.
5. Introductory bonuses and offers
Most banks use short-term incentives like sign-up bonuses and introductory offers to attract new customers to open an account with them. This is one of the most important factors to take advantage of as a business owner since it is an effective way to boost your balance quickly.
Apart from cash bonuses, rewards programmes are also another common incentive. This can include everything from miles rewards to cashback. However, do your homework and assess whether the cash bonus is worth signing up for.
In some cases, you may have to meet certain requirements to qualify or end up paying more in bank fees, so keep an eye out for this.
6. Interest rates
Always look at a bank’s interest rates before signing up for a business account. With the most competitive rates possible, your money has the opportunity to grow significantly.
7. Software integrations
Already using accounting software to manage your business finances? You’ll be glad to know that there are Business Accounts from payment service providers that allow you to sync your software with your business account, making it even easier to track your company’s financial data.
As you compare the various business accounts available, always check their integration capability with your accounting software.
On top of accounting, look out for other integrations such as tax and payroll software and if it’s possible to sync those tools with your business checking account as well. In this digital age, achieving greater workflow optimisation has never been easier.
Get started with the Aspire Business Account
Just like any business or executive decision, choosing the right account for your company comes with various factors to take into account. After all, this is where all your business funds will be stored. It’s only right to take the time to do your research and weigh your options carefully.
Known and loved by many local founders as the best business account, the Aspire Business Account, a payment services account, was made with the modern entrepreneur in mind. From virtual cards, automated invoicing and smart integrations, it’s everything you need to run your business on the go.
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