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As mentioned earlier, keeping up with all of your banking business can get tricky at times. With so many vendors offering different types of accounts, it is easy to get confused as to which one is best for you or if they are even allowed to offer these services in your area!
Luckily, there is an account that doesn’t require too much hassle anymore! The simple checking account has returned once again.
Providers have noticed that people don’t seem to care too much about who offers what type of credit card service or bank account option anymore. People seem more concerned about how expensive their monthly bill will be than whether or not they will receive adequate customer service.
As such, most large banks have made several changes to try and keep up with the competition by lowering the barrier of entry to having a good quality financial product. A low maintenance lifestyle seems to be the trend today.
What is simple checking?
A basic check deposit account means you will only need $100 to open and start depositing money into the account. After doing this for a few weeks, you can easily spend around $200 per month depending on how frequent you go to the store. This could include things like food, gas, and shopping trips.
By opening this type of account, you give yourself a little breathing room to see how well you manage your spending without investing too much money at one time.
Choosing a low-interest checking account is like choosing a cheap pair of shoes—you know what you get, but it’s not very durable or practical. It will only hold money for as long as its most expensive competitor!
That said, there are some pretty good reasons to have a low-cost checking account. Some people feel that an easy access check does not require too much responsibility, so they do not think twice about writing a bad check because their spending has been limited before.
Another reason is if you need frequent checks due to your job, then having a lower cost option makes sense. You can afford to spend more time at the bank than with your wallet.
If you don’t expect to make large deposits or withdrawals, then a simpler system is better. You want to keep things simple, just like having a basic wardrobe.
So you have made the decision to start your own business, and now it is time to find a place to house this new business!
You will need to pick where you want to keep your money separate from yours, as well as decide what type of business account you would like to use. This article will talk about some easy ways to get started with a business checking account!
First off, make sure that you have read our article about why having a good business banking relationship is important. You should always strive to maintain an excellent credit score and be aware of which types of accounts require more documentation than others.
Now let’s take a look at how to open a business account at a different bank.
As mentioned before, you do not need a direct deposit to have an easy time paying your bills. A savings or checking account can be used as a payment method if there is enough credit available via the banking system.
A standard way to fund your business account is through a recurring Direct Deposit. This removes the hassle of having to remember to make payments each week or else money would be automatically withdrawn.
It also helps reduce overhead because you no longer need to process weekly deposits-the banking system does that for you!
Another common way to fund your business account is by using a Check Deposit service like QuickBooks Online Payroll. You can use this service to scan in receipts and then upload them into your accounting software. Then, they will either get credited directly to your business account or to your personal one depending on what mode of pay you choose while setting up your payroll services.
As mentioned earlier, there is an additional monthly fee for each of these accounts that can add up quickly. The easiest way to avoid this is by choosing a no-fee banking partner.
That said, it’s important to know what kind of checking account you need before picking your provider.
You don’t want to go into debt due to unnecessary spending so make sure you understand the costs of each type of account. Here are some common types of business checking accounts and their associated monthly fees.
· Cash management accounts – These types of accounts usually include a daily service charge as well as per check processing.
· General business accounts -These typically have higher minimum transaction requirements and/or per item charges.
· Time deposit (TD) accounts - There is normally a monthly maintenance or activity fee tied to this type of account. This could be for online access or paper statements, but mostly the second.
When it comes to withdrawing money from your business banking account, there are two main ways to do so. You can either use an ATM or a Direct Deposit method to draw down your funds.
The most common way to withdraw money via ATM is called a Balance Inquiry. This is when you add this information onto your online banking tool to ask how much cash you have in your account.
You will then need to go out and find an ATM that accepts Visa/Mastercard (an international card) and enter their user name and password to access the money. The technician working at the ATM will also likely ask if you want to recharge your debit card as well!
By doing this, they will pull up your balance just like what you would normally do through online banking. It is not necessary to physically visit a location to do this. If you already know which ATMs offer these services, you can stay home and still earn rewards.
The most common business checking accounts are done through an organization called The Des Moines Bank, which has given their banking division a rebranding. They call this new unit the Technology-Enabled Banking (TEB) department.
The TEB department offers several different business share classes to give your company access to certain features of the website. These include Standard Business Share, Advanced Business Share, and Ultimate Business Share.
The difference between these types of shares is how much access you have to the site’s functions. If you have the standard business sharing level, you will get some basic tools such as reports and statements. You can also add people as users to help monitor the account.
If you have the advanced business sharing level, you will get more powerful monitoring tools that can create even easier ways to keep up with all of your money. This includes creating transactions in real time and tracking where the money goes in greater detail.
Ultimate business sharing comes with extended access so that anyone within your organization can do things like make transfers or put extra deposits into the account.
As mentioned before, you can have an individual owner or partners who each hold partial control over the money in the business account.
Alternatively, you can be hired by the company to work full-time for them as an employee with access to their personal banking accounts. This is called direct employment or employer banking.
You can also become paid part time so that you don’t qualify for employee benefits but still get reimbursed for your normal daily expenses. This is known as independent contractor status or self employed banking.
The final option is being sponsored by the company as what we refer to as proxy banking. Just like having indirect employment, this allows the sponsor to use their own funds to pay you for your services while keeping all of it separate.
What all these types of banking relationships have in common is that none of the individuals involved receive any special perks or additional compensation except for maybe some sort of acknowledgment which can include a plaque or letter.
There are three main certifications that most major banks offer their business banking customers. These include Certified Deposit Account (CDI), BSA Qualified Depository Service (QDS) or Guaranteed Access Security Code (GSCD).
All of these require you to agree to keep your money in an institution for at least six months before they will consider it fully stable. This is so they can make sure no catastrophes occur during this time frame.
After this period, they will evaluate whether or not the bank is secure enough for higher level access such as internet banking and direct deposit. If it is, then you’ll get these benefits!
That being said, there are some similarities between all three accounts. For example, none of them allow you to write cheques nor do any kind of transactions like transfer funds, withdraw cash or move deposits.
This is because these kinds of things requires higher levels of security that the bank doesn't feel confident offering yet. But once again, if and when they do, you'll be notified and given full access.
