Choosing a corporate bank account involves considering requirements for applying, interest rates, fees, bank size and support, and special programs. Requirements typically include proof of business, identity, and corporate resolutions. Interest rates and fees vary, and larger banks offer more services. Special programs may offer incentives but normal rates and fees apply after the promotion ends.
Choosing a corporate bank account is an important financial decision for any business – big or small. Business bank accounts are typically savings accounts used for income and checking accounts used for operating expenses, payables and payroll. Before you start looking for a corporate bank account, determine what you will need – savings, verification or both. When researching banks for your business account, consider the requirements for applying for an account, interest rates, and additional fees. In addition, the bank’s size, reputation and support for your type of business can be important considerations when selecting the appropriate bank account. For start-ups and growing companies, special programs with account opening incentives can be a very attractive option that some banks may offer.
One of the most important considerations when choosing a corporate bank account can be the requirements for obtaining the account. Requirements often vary by location, but typically include documents for proof of business, proof of identity, official company seal, and corporate resolutions. Banks also sometimes require a registered government business number; in the US, this is called an Employer Identification Number (EIN). The proof of business for most businesses is the Article of Incorporation, or Article of Organization if your business is a partnership or property. Corporate resolutions are usually required to provide the bank with a defined list of employees who handle the bank account on a regular basis. Also, keep in mind that some banks may require your business to have an excellent established credit history, which can be difficult for a startup or newer business.
Other important points to consider are interest rates and account fees. Interest rates vary in different places and with different banks, but are usually available over the phone or on a bank’s website. Some accounts also have additional fees, such as transaction, overdraft and funds transfer fees. For small businesses, an accumulation of too many fees can become counterproductive and increase overhead.
The size of the bank can be important as it can affect the level of customer support and extra services offered by the bank. Smaller banks typically have basic services for their customers and are often unable to support a start-up or growing business. On the other hand, larger banks with a solid reputation in the industry generally have more reach and flexibility in their financial products and services. Large banks often have extra services, such as lines of credit and online banking, available to customers with a corporate bank account. These services can typically be customized to your specific business needs and can often be adapted over time as your business needs change.
Also, consider banks that have special programs for certain types of businesses, such as startups or small businesses. To entice customers to sign up for or upgrade accounts, banks may offer incentives such as higher interest rates for savings accounts or waivers of additional fees. Typically, these types of deals are available during special promotion times. So you might want to take advantage of this deal if you find one. When doing so, however, keep in mind that normal rates and fees will normally apply once the promotion expires.
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