On average, banks offer five different business checking account options, according a comparison study by online resource NerdWallet. If you then consider the number of banks or credit unions in your community, the sheer quantity of choices for business checking may begin to seem overwhelming. To find an account that fits your business, and ultimately may save you money, use the guide below.
1. What type of business do you own?
Some banks offer special accounts to the following types of businesses:
- Sole proprietorship, government-owned or a non-profit: These accounts usually earn interest, include lower fees and allow more transactions.
- Small Business: Small Business accounts typically have lower fees and allow fewer transactions.
2. How many transactions do you typically make per month?
Many business checking accounts have a pre-determined transaction limit per month. For example, the average business checking account allows 175 transactions per month*. When a business goes over the limit, the bank may charge the business a fee per item. The average excess transaction fee is $0.40 per item and can be as high as $0.75.* If your business makes a large amount of transactions, look for a checking account with a higher transaction limit.
You’ll also want to take into consideration the type of transactions and which you use the most often – check, deposit slip, debit card, point-of-sale, ATM**, etc. Banks may charge different fees or no fee depending on the type of transactions.
3. Do you need to deposit a large amount of cash on a regular basis?
Some business checking accounts also place a limit on the amount of cash that can be deposited into an account and charge a fee for every $100 in excess of this limit. The average cash handling fee is $0.15 per $100 in excess and these fees can be as high as $0.75.*
If your business deposits cash regularly, look for a checking account with a high cash deposit limit or one that offers no charge for cash handling.
Merchants Bank does not charge a cash handling fee as part of a Business Checking account.
*How Business Checking Fees Work: A Beginners Guide by NerdWallet
**ATM surcharge and foreign fees may apply.
No minimum deposit required to open Merchants Bank Small Business Checking, Business Checking, Interest-Bearing Business Checking or Nonprofit Business Checking accounts.