Best Free Business Checking Account
When searching for a business checking account, many entrepreneurs look to the large national banks that are well known in the media. However, many owners fail to consider a credit union for business needs. Over the past few years, the popularity of credit unions have increased as big banks seek to pull in large revenues through fees and other charges to account holders. Nevertheless, the best free business checking account can be found at your local credit union.
Credit Unions are Non-Profit
One of the primary reasons local credit unions are the best business checking choice is because these financial institutions are non-profit. In 1934, the Federal Credit Union Act indicated that credit unions were federal chartered non-profits that were owned by the members of that credit union. This means, if a business owner has an account at the credit union, he or she owns a share of this financial institution. In addition, non-profit means the fees and terms will not be as high or outrageous as the big bank counterparts.
Credit Unions Serve Small Businesses
Statistics show that most credit unions do not offer specialized business checking or premium business checking accounts like typical banks. Even though this may seem like a downside, it does demonstrate that credit unions serve a population that is underserved at most banks, the small business owner. Small business owners seek free business checking accounts with no fees, no minimum balance, and no strings attached. Most individuals seeking a free business checking are not looking for all the bells and whistles that a large corporation would look for in a bank.
Some Offer Educational Programs
Many credit unions are also jumping on the bandwagon to assist small businesses in growing and maintaining success. In addition to many credit unions offering free business checking, some of these also offer weekly educational courses for business owners that assist with organizing the financial side of a business. Additionally, business seminars may also be offered to assist entrepreneurs in writing a business plan and marketing the business online and to the local community as well.
Personal Service and Community Based
Credit unions tend to bring banking back to what it used to be, which is personalized service within the local community. This means business owners can develop relationships with the local credit union more easily, which can actually accelerate time sensitive business moves such as getting a business loan to sustain or help grow a business. As more credit unions branch out to help local business owners, the community’s economic stability grows as well. This helps everyone reap the benefits of more jobs and more financial security within the community.
Many banks offer great business checking options, but very few of these are free. Many have restrictions on the number of transactions, deposits, and the amount of cash deposited. However, most credit unions offer a cost effective way for small businesses to have a free business checking account without all the terms and conditions of a large commercial bank. This is why these institutions are the best to start with when seeking a free business checking account.