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How to choose the right checking account for your business

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Key takeaways:

  • By evaluating some of the features of a business checking account, you can choose the account that is right for your business.
  • When comparing accounts, remember that your time is important, so find a business checking account that offers convenient transactions.
  • Think through fees and other charges to select the most cost-effective business checking account.

Are you on the hunt for a business checking account?

Whether you are at the beginning of a new business journey or are looking to make some changes to your business finances, taking the time to find an account that is optimized to your needs is very important.

Finding bankers who view you as a valued customer is the first thing to look for as you search for the right business checking account. According to J.D. Power, only 37 percent of small business owners said their bank appreciates their business. Having a banker who understands your business needs can help you in the long run and offer you solutions, so you can focus on running your business. Beyond that, there are several things to keep in mind as you compare business checking accounts.

To help you find the right account for your business, consider the following:

What are common features of a checking account that are important to understand?

  • Earning interest: Some business checking accounts allow you to earn interest. Consider the account’s fees and charges to ensure the interest outweighs other costs in order to provide some long-term savings for your business.

  • Minimum daily balance: This is the amount that you have to keep in your account each day. You’ll want to be especially careful to maintain that balance so as not to incur a penalty.

  • Service charge: While monthly charges are often offset by other benefits, you’ll want to see what they are, so you may be able to take advantage of cost savings.  
  • Earnings credit: The credit is calculated based on the amount of money you keep in the account and is used to offset service charges. Banks typically have different rates so it’s important to ask your banker.
  • Limitations: These are limits on the number of transactions you can make per month before you are charged an activity fee on transactions.
  • Activity fee: Some accounts impose restrictions on the way that you move money. This is done to encourage you to save. Accounts have different fees on transactions including debit, credit and deposited items.  ​​​​​​

MidWestOne offers four business checking accounts to choose from that you can easily compare side-by-side, so you can see which option would be most cost-effective for your business.

What are other factors should I consider when choosing an account?

You shouldn’t have to spend much time on banking. Look at the tools the bank offers and understand what tools are included when you open a business checking account. You’ll want to maximize your time on running your business, so look for items such as mobile banking that allow you to minimize your time banking.

At MidWestOne, each business checking account offers online bill paying, free QuickBooks® integration, electronic statements and mobile banking and mobile deposits. Plus, each business checking account comes with a business debit card equipped with chip technology.

Do I need to protect my account?

Overdraft protection can help you in the event a transaction results in an overdrawn balance. These plans can help prevent an overdrawn account or alert you when it happens.

MidWestOne offers different types of protection plans, so you choose the one that is right for your business.

All four MidWestOne business checking accounts require a minimum opening balance of $100. The Business Interest checking account requires a minimum daily balance of $5,000.

At the end of the day, most business checking accounts are similar and it’s the small details that can make a difference. By working directly with your MidWestOne banker, you can find the account that works best for your business’ financial situation.

If you have questions regarding opening a business checking account, the MidWestOne team can help. Stop in to see us at any of our locations.

MidWestOne Bank does not provide tax, legal or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal, or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any transaction.

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