Looking for a Business Savings Account? Choose One That Offers These 5 Features
Just like individuals, savings are essential for businesses too. But with several banks now offering savings accounts designed for businesses, how will you pick the best? Select one that provides the top five features discussed in this post.
Once your business starts making money, it is natural to start thinking about ways to expand and grow your operations. But before making plans to take your business to the next level, you should first focus on strengthening your foundation.
Setting aside a fixed amount of money every month can add more stability to your finances in the longer run. The savings could prepare you for emergencies, help you make major purchases, and your expansion and growth initiatives would also be more confident as it is your own savings that you’d be relying on.
Opening a savings account designed for businesses could be an excellent way not just to save but also to earn interest on the maintained balance. But with so many banks now offering these accounts, how will you pick the best? Go for one that offers these five features-
1.Multiple Account Types to Choose From
The banking needs of every business are different. Right from the industry, you are involved in, to the size of your business, several factors impact your banking needs. So, there cannot be a single type of savings account that could meet the requirements of every business.
Try to pick a bank that offers many different types of business accounts, such as accounts for traders, manufacturers, start-ups, local businesses, suppliers, real estate developers, and more. The features of these accounts should be in line with the basic banking needs of your business.
Just like individuals are required to maintain a minimum monthly balance in their savings accounts, businesses are required to maintain QAB (Quarterly Average Balance). You could be penalized if the QAB falls below the minimum limit. If you are just starting a business or run a small business, prefer an account with low QAB.
Some of the banks also offer savings account for businesses with no QAB requirements. Smaller businesses and start-ups can consider such accounts as well.
3.Competitive Interest Rate
One of the top reasons to open a savings account is the interest it generates on the maintained balance. So, you don’t just get to save your money with your savings account but also watch it grow. Needless to say, if you are planning to open a savings account for your business, select one that offers a highly competitive interest rate.
The rate could vary between banks and even based on whether you have a Canadian Dollar or US Dollar savings account.
4.Free Monthly Transactions Limit
As a business owner, you’d mostly be required to make several banking transactions every month. But with most types of business accounts, there is a limit on the total number of free monthly transactions. You will have to pay a fee for transactions above the monthly limit.
Do check the monthly transaction limit of the account and match it with your approximate transactions in a month to make the right decision.
Another important consideration when selecting business savings account for your business is the service charges of the bank. This can not only vary between banks but also between different accounts offered by the same bank.
When going through the service charges, focus on the type of transactions you generally do. Debit card annual fee, cheque issuance, DD issuance, withdrawals, and cash deposits usually also have a service fee.
Building a Financial Cushion for Your Business with a Business Savings Account
While there are now several ways for a business to fund its operations, savings are always a better option to rely upon. After all, it is your money, and you are free to use it just the way you like without worrying about repayment or interest.
With banks now offering feature-packed savings accounts, businesses can now start saving even with a modest amount and experience the modern world of business banking. Look out for these features when selecting a savings account for your business, and you can make the right decision.