Choosing a Business Checking Account

It’s time. You’re either starting a business or growing a business. So let’s choose a business checking account!

1 - Yeah!

Glad you are committed to being organized and legit. And happy you are not commingling your personal and business moneys!

2 - There are two types that come up for business checking:

(1) Fintechs that are cool apps that use a regional or smaller bank to actually do the banking. the Fintech that may have cooler features for business owners (like separate buckets for taxes).

(2) Banks/Credit Unions where you are signing up with the direct bank.

Either are fine, just be clear on what you pick and make sure the institution is FDIC-insured. 

3 - Make sure it’s clear what you need to do to keep it a free checking. Some require minimum balances or limit transactions.

A couple Pledgettes use the FinTech - Found. As you dig into their site, it says, “FDIC insured up to $250K through Piermont Bank*”

I use a local community bank. I’m required to never dip below $1000 in my balance. Or I get hit with a $12 fee for the month. It has happened before but since I have a great relationship with my banker, I have been able to have those fees reversed when I ask.

4 - Beyond features, also consider Values

Finally, Mighty Deposits  is a great resource to make sure you are choosing a bank that aligns with your values! IE - as a business owner, I’d like to bank with someone that offers small business loans for my future growth

Finally…

Don’t overwhelm yourself with making the perfect choice. Often times, there are several good choices in front of you (not one right and one wrong). So choose something.

And if in the future, there’s a better or different choice, you can make a new choice in the future. This doesn’t have to be a forever decision.

I have banked with three different banks while owning The Pledgettes for over 5.5 years.