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Are you considering opening a business bank account for your freelance services? Affordable banking options exist. Here’s what to look for and what to avoid. [[{“value”:”
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As a freelancer, you’re a busy business owner. One way to set your business up for success in the early days is by getting your business finances in order. Using business banking products is an excellent way to keep your personal finances and business financial matters separate for better organization.
You may wonder how to choose affordable business banking solutions for your freelance services. I’ll share a few tips to guide you in this important decision.
Research all fees (and read the fine print)
Before opening a business bank account, ensure you understand all the fees. A bank account may be advertised as free, but hidden fees could exist. For example, you may be required to maintain a minimum account balance to be eligible for no monthly maintenance fees.
Other fees to consider are out-of-network ATM fees if the bank isn’t local to you. Some banks offer to reimburse out-of-network ATM fees up to a specific monthly limit. Every fee charged adds up and impacts your finances. Before opening an account, carefully research fees and read the fine print. Otherwise, you may be in for an expensive surprise.
Review deposit and transaction limits
Here’s another warning about potential fees. Some business bank accounts have cash deposit limits or transaction limits. You may be charged fees if you make additional deposits beyond the limit or have too many transactions within a set period. But not all bank accounts have limits like this. Compare offerings so you can choose the best bank and bank account for your needs.
Review other financial products and services
Before settling on a specific bank or bank account for your business, you should review the other banking products the bank offers. Do they offer competitive financing on loans? What kind of business credit cards do they have? Even if you’re only looking for a checking account or savings account, there may come a time when you need other financial products and services.
Consider community banks and credit unions
If a larger bank has a business checking account or savings account that meets your needs, fabulous. But don’t assume that’s the only option. If you seek affordable business banking solutions, you may want to consider products offered by community banks and credit unions. You may benefit from lower fees and better customer service with these institutions.
Compare interest rates for savings products
With a bank account that earns interest, you can earn money while your cash sits in the bank. Any extra money earned is a win for your small business. If you plan to open a savings account, review interest rates. A savings account with a higher rate could benefit your account balance. It’s also wise to monitor rates after opening a savings account because banks can adjust rates.
Business banking solutions can benefit your freelance business
It may seem like your personal checking account is more than enough for your freelancing business. But, combining your personal finances and business finances can get confusing.
Plus, it can make collecting essential accounting and tax information more difficult, which could cause added stress. That’s why having separate business bank accounts is best. For additional tips related to business and freelance finances, check out our small business resources.
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