Opening a business bank account should definitely be one of the first things you should probably do before starting a business. A business bank account is very vital to keep business and personal expenses separate. This will greatly assist your business to kick-start a good record keeping routine. Owning a business bank account gives your business credibility both to your clients and creditors. This too is very crucial before starting a business.
One needs to window shop first before opening a business bank account. This is because various banks charge different fees in opening business accounts. Business bank accounts are usually quite costly to open and maintain as opposed to personal bank accounts. Most of Canada’s big banks have opted to scramble for small investors and businesses since they have proved to be a worthy market. Therefore they try as much as possible to create business bank accounts that their clients will find appealing. By appealing I mean bank accounts with lower bank fees.
Business bank accounts come in two main categories mainly
I. Business bank accounts for Low-Volume businesses
This type of bank account is suitable for small Canadian businesses that have a low turnover in their banking transactions. It is works well especially if you are accessible to the internet. Some of the features this bank offers are:
- Unlimited free business internet banking, ATM, Mobile banking, bill payments and electronic deposits and /or withdrawal.
- Up to about 20 free cheques to be deposited monthly
- One has the freedom to write up to 20 free cheques on a monthly period
These services of course are not free of charge, there is a small fee one will part with though not much. This is what people have been expecting in a long time, that is, a business bank account with chequing and zero monthly fees.
II. Pay-As-Go Business bank Accounts
Perhaps your business doesn’t transact much business with the bank and maybe you don’t often maintain sufficient bank balance to enable your bank to reduce your banks account’s monthly fee. If you require the services of a bank teller and ATM more often then you should consider opening an account where you pay as per the transaction you do. Some of the best bets for pay- as –you- go business accounts are:
- RBC’S Business Essentials Variable Pricing Account:- this is a pay-you-go account that only charges a fee of $0.90 for every paper transaction, $0.60 for every electronic transaction, and an estimate of $2.25 for every $1000 that is deposited. One however is still required to pay a minimum monthly charge of $6.00. this account has the privileges of online and mobile banking services.
- Basic Business Account: – this account charges on a pay-per –use basis for all the transactions that you perform. It is a chequing account that charges a monthly maintenance fee of about $9.00
- CIBC’S Basic Business Operating Accounts: – this account charges a monthly maintenance fee of $8.00 and a charge of $0.9 for every transaction.
The most vital feature of business banks accounts is the relationship that one has with his bank or credit union manager. One doesn’t have to bother much about the cost of your business bank account. It is pointless to spend money monthly on business banking services yet you are not fully utilizing it. Conversely it is not worth it to part with huge sums of money on business account fees and yet you don’t get the business services that you require