I’m a Bank Teller: 5 Things People Don’t Know About Business Checking Accounts
Written by
Lydia Kibet
Edited by
Amber Barkley
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When most people think of a business checking account, they think of it as an account for managing business finances: nothing more, nothing less. However, these accounts often come with perks and costly pitfalls many business owners overlook.
GOBankingRates spoke with Deborah Oliver, a head teller at Addition Financial, about what people don’t know about business checking accounts.
They’re Not for Personal Purposes
“It seems like common sense, but you would be surprised how many people setting up checking accounts for their business are surprised to learn these accounts are limited to business transactions only,” Oliver said.
A business checking account is designed exclusively for managing business finances. Mixing business and personal finances may seem harmless, but it can complicate bookkeeping. That’s why keeping business and personal finances separate is good practice.
Different Accounts Make Sense for Different Businesses
Many banks and credit unions have different business checking accounts tailored to specific business needs.
“For instance, a small business might opt for a business checking account that includes 100 free monthly transactions and can waive fees depending on your account balance,” Oliver explained. “Whereas a larger business might be more interested in an account that pays higher dividends if you keep a higher balance.”
Many Offer Additional Tools
A business checking account is more than just a bank account for deposits and withdrawals.
“It’s standard for most banks and credit unions to offer access to bill pay, digital statements, contactless debit cards, merchant services and remote deposits,” Oliver said.
She advised doing your research and asking questions about the checking account you want to open. This way, you get all you need to run your business’ finances.
There Are Maintenance Fees
Like personal checking accounts, business checking accounts also have monthly maintenance fees, which vary based on your chosen account type.
However, Oliver said, “There are usually ways the financial institution can waive these fees, [like] if the account maintains a certain minimum balance or stays within a certain range of monthly transactions. Credit unions also typically have fewer fees than larger banks.”
Credit Cards and Lines of Credit Can Be Attached
“Most financial institutions want to make it as easy as possible for businesses to manage their money, so when a business opens a line of credit or a credit card with the bank or credit union, they’ll be able to attach it to their checking account,” Oliver said.
She added that she always walks her business members through the digital banking platform, so they can see how easy it is to see all their linked business accounts in the online dashboard or mobile app.
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