How To Choose Your Bank

May 2, 2013 2:09 pm2 commentsViews: 268

Money-2Banking is very important to your business and having a bank account is considered indispensable.  Being the financial institution that acts as your depository and payment agent, your bank should be your reliable partner in your business journey.  It is best to choose the right bank that will meet your financial requirements considering the current and future needs of your business.  

Searching for your bank is a vital concern so here are seven basic guidelines that will help you make a wise decision :

1.  Consider the bank location and banking hours.  The     location should be accessible from your business place.  The banking hours should also be convenient for your business when making deposits and withdrawals.  Most banks are open from 9:00 a.m. to 3:00 p.m., Mondays to Fridays, but some banks have more flexible hours that extend up to 4:00 p.m. or 5:00 p.m., or even on weekends.  Most banks also have ATM facilities located within a certain area that operates 24/7 hours.

Bank2.  Check the interest rates being offered by the bank.     Most banks have several types of savings accounts and checking accounts that offer better-than-standard interest rates for your deposits.

  • Savings Accounts (with passbook or ATM card) usually pay the lowest interest rate for your savings deposit.
  • Basic Checking Accounts usually do not pay interest and charge monthly service fee if your balance falls below maintaining level.
  • Interest-Bearing Checking Accounts pay interest but charge higher monthly service fee if your balance falls below a pre-set level.
  • Savings with Auto-Transfer to Checking Accounts pay interest on balances maintained in the Savings Account.  Automatic transfer of fund to the checking account is made for checks issued.
  • Time Deposit Accounts pay higher interest rates because the money will be kept by the bank for a specified amount of time at minimum of 30 days to as long as six years.  There is substantial penalty for early withdrawal.

3.  Check the credit facilities being offered by the bank.  Most banks offer working capital loans, small business loans, revolving credit, and/or loans against real estate or business properties which can be useful for your business operations.   Commercial lending rates vary per bank so it is really wise to compare them. Money

4.  Review the bank’s rates and service fees as well as the required average daily balance (ADB) or maintaining balance for deposits. Compare them with other banks.

  •  Banks usually charge monthly service fees for accounts falling below ADB.
  • Other charges include ATM card or passbook replacement, bank certification fee, checkbooks, wire transfer fee,  manager’s check, traveller’s check,  demand draft,   inward remittance fee, safety deposit box,  bills purchase charge, overdraft fee, stop payment fee,  returned checks and other penalty fees. 

5.  Check the other products and services that the bank offers for your short-term or long-term needs.  Most banks offer the following :

  • Special Time Deposits and investment facilities
  • Foreign Currency Deposits
  • On-line and internet deposits  Bank-2
  • Check-writing facilities
  • Bills payment options
  • Credit Card/Debit Card
  •  Payroll Accounts
  • Extensive ATM network

 6.  Consider the bank profile, major stockholders, major clients, length of service and security set-up.  The bank should be able to provide the standard deposit insurance coverage per depositor.   Bank stability and security is top priority.   

7.  Assess the bank customer service.   Experiencing good relationship with the bank officers and employees is essential for both your current and long-term business concerns.   Customer service by phone banking should also be considered as it is necessary to get connected to your banker whenever the need arises. 




  • Max Fabricante

    Madam it is also good to consider not only phone banking but also ON-LINE banking. In on-line banking, the depositor requests for an on line arrangement with the bank by filling up a form and indicating there the accounts she or he would like to see by logging in at home or in any computer with internet access. He can find out his balances, transfer funds from one account to another and even make bill payments 7/24. If one very truly needs these facilities, he should ask if the particular bank of his first choice provide this service. If not, a simpler bank will suffice, of course.

    • CPA In Virtual Business

      Thanks for the comments Max. Indeed, phone and online banking are one of the other services offered by banks nowadays. It really pays to know and use these extra services provided by your chosen bank.

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