Having a bank account for your business is a necessity but with so many banks offering a plethora of options, choosing the right account for your needs can be tricky.
Of course doing research about the products on offer should be top of your list but we’re going to guess that’s what brought you here.
FNB Business spokesperson Kenneth Matlhole, outlines key questions business owners should ask when shopping for a bank account.
According to Matlhole, the first thing to consider is what sort of account you need.
“A standard transactional account is ideal for managing money coming in and going out of the business. A new business can either go for a Pay as You Use pricing option with a low monthly account fee or a Bundled pricing option which accommodates for a higher number of transactions,” the spokesperson says.
The monthly account fee should be the only focus when looking at cost. Matlhole advises business owners look at all fees including transactional fees so as to insure they are in-line with your business activities. Simply put, if your business needs dictate that you will transferring money and transacting often, consider an account with lower fees for those activities.
Next up – can you manage the account online?
While it seems like an obvious question, increasing digitalisation and the speed of business means being able to transact online is a necessity. But it doesn’t stop at just being able to view balances and the like online says Matlhole.
It’s worth considering whether you will need to apply for credit online, perform foreign exchange transactions, and view transactions online.
Perks of the job
While you are looking for value, it’s also worth considering what benefits and bonuses the bank offers.
Consider solutions which offer services such as payroll, accounting and even loyalty programs.
“As part of the value-added services, banks now offer customers rewards and loyalty programmes, which reward businesses in line with their banking behaviour. The ideal programme should allow businesses to spend on goods and services that add meaningful value – especially in tough economic times,” say Matlhole.
Of course, one should also do research about the service you can expect from the bank.
Check websites such as Hello Peter and go see what folks are saying about the bank on social media. It might also be a good idea to ask around and get comments about the bank from others.
Finally, and most importantly, will the bank account or bank be able to cater to your needs should you expand?
Consider factors such as credit, asset finance and whether the bank will be able to assist you should you require those services one day.
“When shopping around for a bank account, consider the overall value you are getting instead of basing your decision solely on bank fees. Moreover, taking the time to familiarise yourself with the account pricing structure and adopting the right banking behaviour and pricing structure can save you a lot in banking fees. Acquainting yourself with the pricing structure should not be a once-off exercise but should be done regularly as your business activity changes to ensure you’re getting the best value for your banking needs,” concludes Matlhole.[Image – CC 0 Pixabay]