10 Things to Consider When Setting Up a Business Bank Account

Here are the 10 top things to consider when setting up a business bank account:

1. Fees and Costs

This is arguably the most important consideration, as banking fees can pile up and impact your profits. Look for accounts with low or no monthly maintenance fees, but don’t stop there. Consider additional fees for common business transactions, including:

• Exceeding transaction limits
• Cash deposits over a certain amount
• Wire transfers (domestic and international)
• Overdraft fees

Some banks offer “no-fee” accounts, but they often have limitations that could mean fees in other areas. Take the time to review the bank’s fee schedule to ensure that the account is truly cost-effective for your business.

2. Minimum Balance Requirements

Many business bank accounts require a minimum balance to waive fees. If you don’t meet this minimum, the account may incur maintenance charges. Evaluate your cash flow and typical account balance. Can you comfortably maintain the required minimum without putting a strain on your cash flow?

Some accounts even offer a sliding scale for fees based on the minimum balance, allowing flexibility for businesses with seasonal income or fluctuating monthly revenue. It’s essential to find an account where the minimum balance fits your financial realities.

3. Transaction Limits

Transaction limits are another key consideration, especially if your business processes numerous deposits, withdrawals, or transfers each month. Some banks cap the number of free transactions before adding per-transaction fees.

If your business involves a high volume of transactions (like retail or e-commerce), an account with generous or unlimited transactions may be worth considering—even if the monthly fee is a bit higher. On the other hand, businesses with few monthly transactions might find a basic account sufficient.

4. Online and Mobile Banking Features

In today’s digital age, online and mobile banking isn’t just a bonus—it’s essential. A robust, user-friendly mobile app and online banking platform allow you to:

• Monitor your cash flow in real-time
• Make transfers quickly and securely
• Deposit checks remotely
• View transaction history and account statements on the go

If you’re always on the move or manage your business remotely, the ability to handle banking tasks from your phone or laptop is a significant advantage. Look for features like real-time alerts, easy-to-read dashboards, and compatibility with your mobile devices.

5. Access to Physical Branches and ATMs

While digital banking is essential, having access to physical branches and ATMs can still be valuable—especially for businesses that handle cash deposits or prefer in-person support. Check if the bank has branches nearby, and inquire about their ATM network.

Some banks offer nationwide ATM networks with fee-free access, while others charge for out-of-network transactions. Also, consider whether the bank reimburses ATM fees if you frequently withdraw cash on the go.

6. Customer Support

Responsive and knowledgeable customer support is a lifesaver when issues arise, whether it’s a question about your account or a more urgent problem. Look for banks that offer a variety of contact options:

• 24/7 customer support, if possible
• Dedicated business support line
• Email and chat support

Reading customer reviews can also provide insights into a bank’s customer service. A bank with solid customer support can save you time, reduce frustration, and provide the guidance you need when issues pop up.

7. Integration with Accounting Software

One of the best ways to streamline your financial management is by linking your bank account with your accounting software, like QuickBooks, Xero, or FreshBooks. A seamless integration allows automatic data syncing, which can save time on manual entries and reduce errors.

Ask about integration options for the bank account you’re considering and verify compatibility with your preferred accounting software. Some banks even offer dedicated tools or perks to support businesses using popular accounting platforms.

8. Cash Flow Management Tools

Some business bank accounts come with built-in cash flow management tools. While not strictly necessary, these features can simplify tasks like budgeting, invoicing, and expense management. These tools can be particularly helpful for small businesses or solopreneurs who don’t yet use full-scale accounting software.

Features to look for include:

• Automated invoicing and bill pay
• Budgeting tools for setting financial goals
• Expense categorization for tax preparation

Cash flow management tools can help you keep track of spending, optimize budget planning, and avoid cash crunches. They’re a handy bonus for business owners who want more financial oversight without investing in additional software.

9. Interest-Bearing Accounts

If your business tends to hold larger balances in checking, an interest-bearing account might be a good choice, allowing you to earn some extra cash while your money sits in the bank. While interest rates on business checking accounts tend to be modest, even a small return can add up over time.

This feature is not a priority for every business, but if you’re in a position to keep a higher balance, it’s worth exploring options that earn interest. Many business savings accounts and some checking accounts offer interest-bearing options, allowing you to grow your funds passively.

10. Introductory Offers and Perks

Banks often compete for new business by offering cash bonuses, free services, or other perks for opening an account. While these incentives can be appealing, they shouldn’t be the primary factor in your decision.

Consider the long-term value of the account, but keep an eye out for one-time bonuses or perks that align with your needs, such as:

• No monthly fees for the first 12 months
• Free wire transfers or cashier’s checks
• Discounts on loan rates or merchant services

Evaluate introductory offers as a nice extra—just make sure they don’t sway you into choosing an account that doesn’t meet your core needs.

What Are You Looking for in a Financial Institution?

Choosing the right business bank account is more than just finding a place to park your money. Think about what features will support your business and align with your values and goals. Here are a few questions to help narrow your options:

• What are my primary needs? Consider whether low fees, easy access to cash, or robust online banking is most important to you.
• What’s my cash flow like? If you handle a lot of transactions, a high transaction limit or unlimited account might be crucial.
• How often will I need customer support? Banks with around-the-clock support can be invaluable if you handle finances at odd hours.
• Do I need physical branches? For some businesses, the convenience of a nearby branch or a wide ATM network can be essential.

Find an Account That Works for You

Your business bank account should empower you to run your business efficiently, make daily banking seamless, and support your long-term growth. Taking the time to research these 10 factors will help you choose an account that’s both convenient and cost-effective, offering the tools and resources you need to make banking work for you—not against you.

Consider your unique business needs, and use this guide as a checklist to make an informed decision. Your business deserves a financial partner that’s invested in your success!