New businesses have limited resources at their disposal, and to help these businesses along, we can recommend the following steps in opening a free business bank account:
Step 1 – Evaluate Your Needs: Banks vs. Credit Unions
Brick and mortar banks typically have higher overheads and may be unable to offer free business bank accounts. However, some brick and mortar banks as well as online banks have started to offer free business checking, account saving account combinations for low volume businesses. Credit unions typically offer low-fee or free business hank accounts.
Step 2 – Compare Business Account Fees
You may be able to get a free business bank account, only to be required to hold large minimum balances and be charged hefty fees for simple services such as checkbooks, and for using a bank account debit card to conduct ATM transactions. Make sure you are aware of minimum balance requirements and fees related to your free business account.
Step 3 – Compare Interest Rates & Credit Options
Many financial institutions that offer free business bank accounts may not offer interest checking accounts. However, some recent offerings do include interest bearing business accounts, which you can avail for maintaining your cash balance. Also make sure that you are eligible to apply for business credit based on your free bank account, as all accounts may not be eligible for this option.
Step 4 – Open Your Account
Make sure you have reviewed all terms and conditions and obtained documented evidence relating to services that you require, and then open your bank account.