The past few months have been a difficult time for small businesses, especially with small biz banking. With the economic downturn, many businesses have fallen victim to bank collapses and other financial challenges. That’s why it is more important than ever to be diligent when selecting a bank account for your small business. Here is an overview of what to look for in a small biz banking account after the recent bank collapse. As you will see below, I’ve been through one before and it was not pretty!
Table of Contents
Small Biz Banking Stability
The first thing you should look for in a small business bank account is stability. Many banks have collapsed due to mismanagement or fraud, so it is important to do your research before selecting a new bank.
Take the time to check with Better Business Bureau ratings. Then, talk to friends or colleagues who have done business with small biz banking in your area.
Knowing that your money is safe with your chosen bank can give you peace of mind as you move forward with your business operations.
Fees And Interest Rates
Another important factor to consider when choosing a small biz banking account is fees and interest rates. Every bank charges different fees for different services, so make sure you understand exactly how much each transaction will cost you before making any commitments.
Additionally, compare interest rates among different banks; even if you don’t plan on using the account for investments or savings, finding a higher rate could save you money over time by allowing you to earn more from any deposits made into the account.
Banking Account Features For Your Small Biz
Checking accounts come with various features such as online banking capability and debit cards, so make sure that any account you open has all of the features that you need in order for it to be useful for your day-to-day operations.
Some banks offer special features like mobile check deposits which can save time and hassle in certain scenarios; take some time to explore these options thoroughly before making any decisions about which type of checking account is right for your small business needs.
Research Banks or Credit Unions Thoroughly Before Opening an Account
It’s important to conduct thorough research before opening a new small biz bank account after a bank collapse. Make sure that any potential banks have sufficient capital reserves and are FDIC insured, as this will help protect your funds in case of another collapse or bankruptcy.
Additionally, look into customer service and fees associated with each potential account, as these can vary significantly from one institution to another.
If possible, try to find reviews and ratings from other small business owners who have used the same institution in order to get an idea of how they handle customer concerns or disputes.
Credit Unions are a great alternative for small biz today.
The RI Credit Union Crisis
However, years ago I was involved in the credit union crisis in Rhode Island back in the early 1990s. My account was frozen and some were never to be seen again. I was in the middle of building a home when the crisis began. Months later our propane was turned off because we could not pay for it as our money was tied up in the credit union. It took a long time to recover from the lack of funds.
That is why today I like to help people with their small biz banking.
Since then, credit unions offer the same FDIC protection as banks.
Understanding Your Small Biz Banking Needs
Before choosing a small business bank account after a bank collapse, it’s important to understand your banking needs and what features you require from an account. Different accounts may offer different features such as overdraft protection, access to online banking services, or interest rates on deposits.
You should also consider how much money you plan on depositing in the account and what type of transactions you plan on making (e.g., cash deposits vs electronic transfers).
This will help ensure that you select an account that meets all of your needs without paying for extra features that won’t be useful for your small business.
Conclusion
Choosing the right small business bank account is essential after experiencing a bank collapse. It’s important to conduct thorough research on each potential institution before deciding where to deposit your funds.
Make sure they have sufficient capital reserves and are FDIC insured in order to protect themselves against further losses if another crisis were to occur again in the future.
Additionally, consider what features are most important for your small business and look into additional services offered by banks if needed (e.g., loans or credit cards).
With careful consideration and due diligence, you can feel confident knowing that you chose an appropriate financial partner for your small business needs. Were you affected by the recent bank collapse? I’d love to hear your story in the comments below.