As a small business owner, you need to think about how you are going to handle your business’ money. One great way you can manage your company’s money is to place it in a savings account for small business owners. These savings accounts ensure that your money is safe while even providing you with a bit of interest that will increase the amount of money you have in your account.
As your business grows, you will want to have a decent amount of money put away in your savings account so that you can use this money to reinvest in your company. However, when you are looking to open a savings account for small business owners, there are a few things you want to keep in mind to ensure you are opening the right type of account for your business.
Low Starting Balance
Each bank will have a different starting balance required to open a small business savings account. Searching for a bank that has a low starting balance requirement is a terrific way to test out a certain bank without tying up too much of your business’ money. If you are unsure which bank you should go with, opening a small savings account will allow you to try out a bank for a short period of where you can see if you are happy with their customer service, banking options, and tools. Once you realize you will be satisfied with a certain bank, you can then deposit the rest of your money into your savings account.
Bank fees are another important aspect to keep in mind when opening a savings account as a small business owner. If you are not careful, bank fees can eat away at your savings and leave you with far less money that you started with. Some common fees that banks charge nowadays include minimum balance fees, transaction fees, and monthly maintenance fees. Comparing and contrasting all of the fees from various banks that will be assessed to your account before you open an account can save you a tremendous amount of money.
As a small business owner, your time is very valuable and you more than likely do not have the time to spend scouring over bank statements on a monthly basis. Selecting a bank that offers online banking for its small business savings account members will save you a lot of time and hassle when it comes time to do your monthly accounting. Online banking can make record keeping extremely easy, and should be something that you look for when deciding which bank to use. Participating in an online demonstration of each bank’s online banking portal will give you a good feel as to which bank’s online banking center is the easiest to use. Taking the time to test drive each online banking portal will pay huge dividends when you are not stuck trying to figure out how to navigate a bank’s website each month.
When looking to open a savings account for a small business owner, it is important that you take your time to carefully consider your options. Taking advantage of low starting balances to get a feel for a bank is a good way to make sure you will be happy with a specific bank before committing all of your company’s money to that savings account. Also, it is important to compare and contrast all of the fees your account will be charged by each bank as well as the online banking portals to see which bank can best meet your small business needs.
David Spader looks at savings accounts over at SavingsAccount.Org.