The need to get a business bank account online has surged nowadays due to the rapidly changing scenario of the dynamic world.
With the emergence of technology and its increasing influence on every walk of life, it is crucial to keep up with it to refrain from becoming obsolete in the business world.
Money management is crucial in business, and a business bank account is the only reliable source in today’s world.
Why Do You Need to Get a Business Bank Account Online?
A business bank account is an account you need to manage your business’s money.
It is similar to a personal account used to manage your personal money. Since the requirements for managing money vary between person and business, you must have separate accounts for individual needs.
If used efficiently, it can play a significant role in boosting your business performance.
- Better organization
The foremost advantage of a business bank account is that it helps you organize your business finances.
The primary objective of every business is to earn and maximize profits that is not possible without keeping track of income and expenses.
Your bank account helps you with that. It works like your accountant and keeps track of the flow of money.
This organization helps you refrain from spending more than your available resources.
- Easy transfer of money
The incoming and outgoing cash is a mandatory part of a business, and keeping its track in bricks and mortar becomes quite challenging.
When you get a business bank account online, you get access to an easy mode of money transfer.
You can make daily payments and also receive without much hassle. You can pay off your short-term liabilities within a few clicks and receive receivables without going anywhere.
- Facilitates loan grant
Whether you own a small business or a large one, you might need to borrow money to meet the business’s needs.
Banks are the most viable source of borrowing. Having a business bank account will make you a more suitable candidate for getting a loan from the bank.
It might ease the verification process also since the bank has already investigated much at the time of account opening.
- Protection and security
The money kept at home or office is more prone to theft or snatching activities.
It is also prone to increasing your liability by becoming a part of your wealth from the business perspective.
On the other hand, business bank accounts allow you to secure your limited liability by keeping the business funds separately at the bank.
Documents Required to Get a Business Bank Account Online
Every bank requires documents to verify the person willing to get a business bank account online.
One cannot get his account opened in the absence of those documents or even in case of incomplete documents.
Here is a list of documents necessary for opening a business account.
- Personal details
- Employer Identification Number (EIN)
- Social Security Number (SSN)
- Business license
- Personal address details
- Ownership agreements
- DBA certificate (optional)
- Formation documents (articles of organization, articles of incorporation, partnership agreement, etc.)
These documents differ from bank to bank, and a bank may require some additional documents also or reduce the required documents. These requirements are usually mentioned on the websites of the banks.
You must first visit the website before preparing your documents.
Things to Consider
While selecting the type of business account and the corresponding bank to get a business bank account online, you must pay close attention to certain factors and analyze them.
They will help you make a wise decision for yourself and your business.
- Initial deposit amount
Every bank has an initial deposit amount requirement, whether you are opening a personal or a business account.
This is an inevitable requirement that the applicant must meet since you cannot have an empty account.
You may not like to pay large sums for deposit amount right after opening an account.
This is a factor that you must realize when comparing different banks.
- Transaction limit
You might need to use your account frequently for daily transactions as a business.
Banks have different policies regarding different types of accounts for the transaction limit allowed to customers.
If the limit is crossed, the bank charges a fee for every additional transaction.
You must analyze the monthly transaction need for your business and then compare different offerings from banks.
This will save you from future inconvenience.
- Minimum account balance
As an account holder, you need to maintain a certain level of deposits in your account as defined by the bank under its policy.
If deposits drop below that level, the bank might penalize the account holder or terminate their account.
A bank account with a higher account balance limit is not usually an attractive option for business accounts. You must consider this factor before opening your account.
Besides these most significant factors, there are some other factors also that you must keep in mind.
They include the customer’s review about the bank, the availability of its customer support team, and side benefits offered by banks.
Types of Business Bank Accounts Available
Similar to personal accounts, banks offer a variety of business accounts also.
They vary in their features and the primary function they perform in response to the needs of the businesses.
You can get a business bank account online from any of the following types of accounts offered by banks.
- Checking Account
- Saving Account
- Merchant Service Account
- Credit card account
The customer is always to select an account of his choice. The bank staff is usually cooperative enough to guide the applicant about its suitability and type of account.
Best Banks for Online Business Bank Accounts
Choosing a bank to get a business bank account online is crucial. You might be confused in choosing between different banks claiming to be the best bank.
To ease your burden a little bit, here is a list of the top five banks offering business accounts services to customers.
- BlueVine
BlueVine ranks as one of the best online banks facilitating entrepreneurs and small and large startups.
The greatest benefit offered by the bank is the unlimited number of free transactions allowed by the bank for customers.
There is no discrimination for the nature of business for availing the benefit of free unlimited transactions.
Another highlighting feature of the bank is that it does not charge any account opening fee.
This makes it an ideal choice for new startups who have not yet started generating business or earn a little profit.
It also has a mobile app for facilitating online banking.
It exempts account holders from a number of charges and offers two checkbooks for free.
- Chase
The next bank on the list is Chase which is a national bank. It allows users to conduct 100 transactions a month for free.
It provides easy access to users with its nationwide presence of branches and ATMs.
Another thing making it a top choice among people in business is that it does not place a limit for minimum account deposits for account opening.
It is considered one of the best banks for entrepreneurs due to its features.
It offers highly specialized online and mobile banking facilities to customers.
You can easily make online money transfers and get a free debit card as a bonus.
- Capital One
If you are running an eCommerce startup, you might like the services of Capital One.
It offers some of the lowest rates for customers dealing in eCommerce. It offers an amazing online banking experience to customers. Also, unlimited transactions are another great benefit of choosing Capital One.
It does not require maintaining a minimum balance in your account.
The account holders get some of the best interest rates with the benefit of paying a minimal monthly service fee that is usually charged at a high rate by every bank nowadays.
It also has a physical presence spread widely over many locations. It facilitates customers round the clock, allowing them to stay connected over the telephone or online.
- Kabbage Checking
Kabbage Checking is yet another bank offering some of the best features and benefits to customers.
It does not charge any monthly service fee. Nor it restricts account holders from maintaining a minimum account balance for deposits.
The account holders can conduct the transactions without any fee.
It is also known for offering good interest rates for enabling users to earn considerable profits. The profit percentage ranges up to 1.10%.
- Bank of America
Besides being a brick-and-mortar bank, Bank of America also provides services through an online platform.
It is best for businesses looking for long-term banking facilities from a reliable source and is considered an excellent option for small businesses.
The bank also offers the finest quality online banking services through a mobile-friendly app.
It charges no fee for electronic transactions. Nor it places a limit on them.
The number of other transactions is also considerably high, allowing customers to conduct 200 transactions without any cost.
It has many branches and ATMs across the country to provide access to customers.
How to Open an Online Business Account?
The process to get a business bank account online is quite simple. There are a few easy steps to follow complying with the defined guidelines, and a person becomes an account holder of a business account.
The first step is to select the type of business account your want to open.
With the variation in requirements of every business, there are various types of accounts offering unique services and features.
You must analyze the account type concerning your specific requirements.
The next step is to find and select a good bank. A good bank refers to a trustworthy bank where you can get the best services for your business needs.
If you have a personal account already opened and are satisfied with the bank’s services, you can also consider it for your business account.
Since you are opening an online account, you do not need to visit a bank branch for an application.
You can complete the account application process at the convenience of your home. However, you might need to submit the documents at the branch in some cases.
All you have to do is sign up at the bank’s website and register yourself to apply for your desired account.
Fill in the required information and submit it. Upload the required documents or submit them in person as per the bank requirements. Wait for the bank’s response to verify your account and confirm account opening.
Fees Required for the Account
When you decide to get a business bank account online, you must also consider the different charges involved in it. Here are different fees usually charged from customers looking to open a bank account.
- Transaction fee
The bank charges the transaction fee on the use of a credit card. It is charged on every transaction using a credit card.
- Early termination fee
The name of the fees says much about it. Some banks ask customers to maintain their account and keep it active for a defined period of time.
If the account holder terminates the account before completing the defined time, the bank might charge a fee for that.
- Minimum account balance fee
The account holder must keep a defined amount of money as the minimum balance in his account. If the account holder does not fulfill the minimum balance requirement, he must pay a fine.
- Address Verification Service (AVS) fees
The bank verifies the account holder’s address to ensure that the person is not fraudulent. This service charges a fee from the customer known as the Address Verification Service fee.
Final Thoughts
There is no need to hurry when you decide to get a business bank account online.
You must do your research irrespective of the time it takes. It will help you analyze all the available options more closely and decide what suits your banking needs the most.
For a better decision, it is helpful to compare the features offered by different banks and rank them.
Once you choose a bank and decide on the type of account, you must pay close attention to the paperwork and respond carefully.
Get all your queries answered and then proceed further.
A business account that fulfills your need will create much ease and comfort in your life.