Whether you’re a large company that has been around for ages or a small start-up ready to take on the world, understanding your checking account options can help your business blossom. It may be easier to open a commercial checking account at any bank close to your building, but sometimes you may be missing out on the best banking opportunities.
As a business owner (or employee), you shouldn’t just consider the checking account itself, but also the bank you choose to provide that account. The right bank not only offers you great service, it can help you make better financial decisions to see growth each and every year.
Our bankers at Cornerstone Bank understand the ins and outs of running a local business, and we strive to help our commercial clients make the most out of their money. If you’re interested in non-interest bearing checking accounts in Kansas City, keep reading to learn more about what to look for before you start.
Should I open a business checking account at my personal bank?
Well, it depends. Some people choose their personal bank because it’s what they are used to. However, just because a bank works for you personally, doesn’t mean it’s the best option for business banking. Personal checking accounts and business checking accounts aren’t always one in the same. They often come with different requirements and fees. Plus, you are most likely dealing with more money in your business account than your personal account.
So instead of sticking with the same bank for the sake of familiarity, you should consider what you truly need for your business. This allows you to gauge whether or not your personal bank has the capabilities you need to succeed. Think about factors such as:
- Online & mobile banking technologies
- Access to bankers rather than automated calls
- Types of checking accounts available
- Quality of service
- Loan capabilities (if needed)
You don’t want to choose a bank only to find out they don’t have everything your business needs. At the end of the day, it all comes down to research and taking your time. Deciding on the right bank for your checking account needs shouldn’t be taken lightly, and you want to have confidence in your choice instead of second guessing yourself.
That’s not to say your personal bank can’t work for business transactions. In fact, at Cornerstone, we offer both personal and commercial banking. Since our bankers have years of experience in the industry, we can offer expert advice and the tools needed for every customer.
What you should know before opening a non-interest bearing checking account
You want to ensure you are fully equipped with the right information about the bank and its business checking account options in advance; that way, there won’t be any surprises down the road (such as fine-print fees you didn’t know about). Unlike interest-bearing accounts, non-interest bearing accounts are typically less expensive to maintain, which is why many business owners turn to them.
Minimum opening deposit
The first thing you want to consider when opening a new account is the minimum opening deposit. Some banks may require more money upfront than others. Depending on the size of your company, you may have restrictions on how much money you have at once to deposit in the bank, so it’s important to ensure the bank you choose fits your budget.
How do I know whether or not a minimum deposit is more than average?
Your best bet is to search around and do your research. We will say that in general, $100 tends to be the norm. If you find a bank that asks for hundreds of dollars just to open an account, you may want to choose another option (or at least ask for more details).
Open account fees
Next, you want to consider open account fees. Some banks will charge you some sort of fee on top of the minimum deposit to set up your checking account. In many instances, business owners don’t ask about open account fees or assume the bank doesn’t have one, especially if they don’t explicitly outline each fee. While this may not be a big deal to some people, to others it can make a huge difference. Fortunately, there are banks that don’t require an open account fee. We highly recommend you ask for in-depth fee details because making assumptions could lead to unwanted surprises.
Other fees and limitations
Outside of an open account fee, a business checking account could come with transaction fees, early termination fees, minimum account balance fees, and more. You probably won’t be able to avoid fees altogether (for example, maintenance fees are common), but you want to find a bank that doesn’t come with an abnormal amount of fees you could’ve avoided.
There’s one thing many people don’t think about in terms of fees: the ability to build a personal relationship with your banker.
Why does that matter?
When bankers see you as a person, not an account number, they understand that each person has different circumstances. For example, if you overdraw your account, but your banker knows you and understands you were having a rough quarter, your banker may be more willing to cut you some slack (as long as it’s not a common occurrence). On the other hand, without a relationship, your banker may not consider your circumstances when making decisions. Plus, the ability to build relationships can also make a difference with getting a business loan.
Outside of fees, your account may come with certain limitations. This may include how many checks you can write a month without fees and minimum monthly balances. These are all factors that can affect your business’s daily operations, so make sure the bank you choose works for you. For example, if your company depends on writing a lot of checks, it’s probably not in your best interest to open a non-interest bearing checking account with strict check limitations.
Related banking services
Depending on your needs, it may be more of a hassle to work with multiple banks for different services. For those who only need a checking account, then this might not matter. However, if you know you’ll need a checking account, savings account, and possible loans, it could be beneficial to find a bank that offers all three. This can help you stay more financially organized instead of trying to keep track of which accounts are where.
How banking locally can boost your financial gains
Quick fact: A bigger bank doesn’t equal better service (it may even be the opposite).
It can be easy to overlook local banks simply because you don’t see them as often, but local banks are often hidden gems for businesses. They typically go beyond the basic banking capabilities and truly become an aid to help you become more efficient and organized with your finances. With banking tools and expert advice, you may even find you can stretch your money further or grow the amount you see each quarter.
As with a national bank, you can open a non-interest bearing checking account, apply for business loans and credit, open savings accounts, and pay bills via a local bank. However, what a large bank may not offer is the insight on how to grow your business within the community.
Cornerstone Bank prides ourselves on being a successful business in the Kansas City area, enabling us to help other KC businesses learn how to thrive, too. Plus, we’re always here to help you implement techniques that will improve your operations, make the most out of banking technology, and help money management become more streamlined and efficient. We want your business to grow and prosper, so we will do whatever it takes to guide you toward success.
Throughout our years of experience, we have helped businesses local and national (thanks to our “bank anywhere” approach) maximize growth and profits by acting as business advisors and a support system. Whether you’re thinking about buying a new commercial building, boosting your ROI, or even organizing financial books, our team will be happy and eager to address your needs.
Learn more about non-interest bearing checking accounts in Kansas City
More than anything, our bankers are here to help you with any of your financial needs. Since 2001, we have been a primary resource for our customers across the Kansas CIty metro and the country. We take pride in watching our customers thrive, no matter who you are.
We always put our customers first, and that means giving them the best banking has to offer. We don’t believe in simple banking; rather, we go above and beyond to help our customers make their money work for them.
For more information, visit our Overland Park office or give us a call at 913-239-8100 to let us know how we can help.