Managing a small business is not an easy thing to do since there are many challenges encountered in the process. One of them is finance management. Money should be saved as much as possible, and this is why people should look for every opportunity to do so. That is where no-fee checking accounts come into the picture.
No Monthly Fees Mean More Money in Your Pocket
Most business checking accounts attract certain maintenance fees that are charged monthly. Such fees can be rather costly in the long run. A small business can be charged between $10 to $25 every month just to maintain an account. That’s $120 to $300 that people are spending in a year and not receiving anything back from their investment. Some of the facilities that no-fee checking accounts do not attract are these monthly fees. This means that you retain a lot more of your earnings, which you can then put back into your business.
Avoid Unnecessary Minimum Balance Requirements
Some business accounts come with the condition that the account holder has to maintain a minimum balance in the account to avoid charges. This can be a pressure on small businesses, particularly those that are characterized by cyclical cash flows. This means that if your balance falls below the amount required, you may be charged extra fees. These fees can be very hidden and they can affect your profitability. No-fee checking accounts do not have a minimum balance that you are required to deposit into the account.
No More Transaction Fees
Most business checking accounts have fees for every transaction that you make. This is inclusive of any deposit, withdrawal, and even any electronic transfer. The usage of the account increases the fees charged on the account. Thus, the more you use the account, the higher the fees charged. In the long run, such additional expenses put a dent in your earnings.
Usually, a no fee checking account is associated with unlimited transacting. This implies that you can transfer money in and out of the account as frequently as possible without incurring extra charges. You can pay your vendors, deposit customer’s money, and transfer money without incurring more charges. It is yet another issue that you do not need to worry about and you can dedicate your efforts toward managing your business.
Convenience of Your Money
The need to be able to access cash easily is very important, especially for small businesses. Some of the conventional checking accounts have charges that apply to the use of the ATM or some forms of withdrawal. This cannot be very pleasant when you are in need of cash for one reason or the other. Free checking accounts usually include free ATM cash with access to a large number of fee-charged ATMs. This means that you can withdraw money at any time you wish without having to be charged any additional fees. Some of the accounts also come with features such as free online banking, which enables you to do your banking from the comfort of your home. Since there are fewer restrictions and costs involved, you will be able to get your cash at the right time that you want it.
Conclusion
It is wise for small businesses to open no-fee checking accounts. They highly reduce expenses and help you to have more control over your cash. This way, you can save your money from being consumed by the monthly fees, minimum balance charges, and transaction fees that are usually associated with the banking institutions. Above all, they help to make the management of your business’s money less stressful and easier.
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