Buyer’s Guide: Small Business Banking Accounts

Successful business banking often depends on using the right type of business bank accounts to give you the most bang for your buck.

Business banking made easy:

When I went into business for myself a few years back I choose to do business with the same bank I have been for over 10 years now. While there is nothing wrong with being loyal to  particular bank, it often helps to shop around – which I failed to do. So before you make the same mistake, look at other banks and see what they can offer you in terms of business transaction accounts and business credit cards.

Choose a business banking account to suit your needs:

What service do you require for business banking? Do you prefer to have access to your local bank branch without extra charges? Or are you more the Internet banking person? You can also choose telephone banking and other methods to suit your needs and that of your clients.

Even if you have an existing business bank account you might be well advised to make the switch in order to save money and receive better customer service.

Featured Business Credit Card

Run your small business smarter with the CitiBusiness Gold Card. This card will help manage your small business’s cash flow better while being able to earn rewards points on every purchase you make.

• $149(half-price annual fee in the first year) annual fee
• 0% p.a. for 4 months (reverts to 20.74% p.a.) on purchases
• 0% p.a. for 4 months on balance transfers
• Cash Advance Rate of 21.49% p.a.
• 55 days interest free
• Minimum Income Requirement of $30,000 p.a.
• Earn 1.25 reward points for every $1 you spend.

Read the Citibank CitiBusiness Gold terms and conditions.

Review business bank accounts with the following questions in mind:

• Do you want a local bank branch: Depending where you intend to do most of your transactions this might be of great advantage. The Business Cheque Account for example gives you this flexibility if you wish.
• Understand business banking fees and how they are charged: If you fail to do your research you could be up for a surprise down the line. Since business accounts do deal with more transactions than personal accounts choosing the right account here can save you quite a bit of money.
• Do you require advice: Some banks offer dedicated business advisers to help answer your questions. One of them is the Freedom Business account.
• Check interest payments on bank balances if you want more money: Both mentioned accounts in this article offer you interest paid six monthly. If there is enough cash on the account, this could work well in your favour.
• Are there any overdraft fees on the business bank account of your choice: If so, you probably don’t want to go into overdraft.
• Are there any bonus deals offered: From fee-free banking to free balance transfers, banks offer a range of features for business customers.
• What are the charges and fees: Find out if there are extra charges and fees through the bank’s disclosure statement.

When choosing the best small business bank account for your business, the best advice is to get all your research done before you decide on a service, performing a comparison of the bank accounts.

The following pages provide comprehensive information on Small-to-Medium (SME) business banking and also some suggested products to help get you organise and finalise the best business banking account for your business: