When you're starting up your business, one of the first (and most important) things you'll need to take care of is setting up a business bank account. It's one of the easiest ways to keep your personal and business money separate.
Types of business bank accounts
There are many types of business bank accounts that cater to different needs, similar to regular bank accounts. You'll want to find one that is designed for your type of business. Below are the most common types of business bank accounts available today: Checking accounts. A checking account is used to deposit and withdraw money from the bank. For sole proprietors, a business checking account may be the only kind of account you need. A business checking account is necessary for all businesses, but you may want to consider a different type of bank account if your business has a high income.
Savings accounts. Savings accounts are great for storing money away and earning interest on it. Many banks offer great interest rates on savings accounts. Money market accounts. Similar to a savings account, but with higher interest rates, money market accounts are good for storing money. If you are running a business and need to save more than what you can put into a savings account, try opening a money market account. Business credit cards. Depending on what kind of business you run, a business credit card can be very helpful. If you need to travel for business, a business credit card can be very convenient. Your business can also benefit from using credit cards to purchase office supplies and other items. Personal loans. If you need to borrow money for personal reasons, a personal loan might be the right option for you. Unlike a credit card, you can use a personal loan to pay for things you need, not just what you want. If you are looking for a loan with a low-interest rate, it
Advantages and disadvantages of a business bank account
An advantage of a business bank account is the ability to have multiple employees with online access to their accounts. Disadvantages include the high monthly fees on some accounts. Low-Risk Business Bank Account. Banks, such as Relay Bank and Huntington offer low-risk business bank accounts which are specifically designed for small businesses. If you are a new business looking for a business bank account with no or low risk then a business bank account may be for you.
If you're looking to open a business bank account in 2022, it might be best to start the process as soon as possible. There are many considerations that go into opening a new bank account and locating a financial institution that will offer all of the features that you need is not always easy. It's important to take the time early on to research banks and find one with an interest rate and fee structure that works for your particular business and budget. Start with a good google search to determine the needs of your business to begin your business banking journey. Happy banking!