Selecting a Corporate Bank Account: Things You Need to Know

If you run a business, whether it's a small startup or a large corporation, you need a bank account to manage your finances.

00:34 05 October 2023

If you run a business, whether it's a small startup or a large corporation, you need a bank account to manage your finances. A corporate bank account helps you pay bills, accept payments, transfer funds, and access credit. The question is, how do you choose the right bank and the right account type for your business needs?

When selecting a corporate bank account, many factors come into play, like fees, services, security, and convenience. In this article, International Wealth experts will explain what to look for in a corporate bank account and how to compare different options.

What is a corporate bank account?

A corporate bank account is one opened by a corporation, partnership, or LLC. It is separate from the personal accounts of business owners or shareholders. This helps to keep business finances distinct from personal ones, avoiding legal and tax issues.

A corporate bank account is either a savings or a checking account. With a checking account, you can make withdrawals and deposits, use debit cards, write checks, and access online banking. A savings account lets you earn interest on deposits and bank online. Some banks offer money market accounts and certificates of deposit (CDs) for businesses that want to earn higher interest rates.

Why do you need a corporate bank account?

A corporate bank account helps you present a more professional image to your customers, suppliers, and investors. With it, you will build trust and credibility with stakeholders much easier and faster.

It simplifies finance management issues. You can access your account online or through mobile apps, set up automatic payments and transfers, and integrate your account with accounting software and other tools.

A corporate bank account protects your money from theft, fraud, and loss. Besides, it is a great tool to track your business income and expenses, which simplifies tax filing and reporting. You can also deduct some of the fees associated with your account as business expenses.

To improve your chances of getting loans, lines of credit, credit cards, and other financing options, use your corporate bank account to help you establish a fruitful banking relationship with your financial institution.

How to choose a corporate bank account?

To choose the best corporate bank account for your business, consider several factors:

Fees and requirements: Different banks charge varying fees for corporate accounts. These include commissions for monthly maintenance, transactions, overdrafts, and wire transfers. Compare these fees and see if they fit your budget and usage patterns. You should also check the minimum balance and opening deposit requirements for each account.

Features and services: Corporate bank accounts come with multiple features and services, like check-writing, online and mobile banking access, bill payments, wire transfers, debit card access, and safe deposit boxes, among other things. We recommend you look for the features and services relevant to your business operations first thing.

Interest rates: If you need an interest-bearing corporate account, e.g., a savings or a money market account, compare the interest rates that different banking institutions offer. For each account, be sure to check the compounding frequency and the annual percentage yield (APY).

Service quality: Look for a bank that provides excellent customer service and support for your corporate account. Consider the availability and accessibility of the bank’s staff, the responsiveness and reliability of its online platform and mobile app, as well as the feedback and comments from other customers.

Branch banking and ATM access: If you prefer to bank in person or need to frequently deposit cash or checks, locate a bank with branch offices and ATMs near your business headquarters. Also, check if the bank is part of a network allowing you to use other banks' ATMs with no fees.

Introductory bonus offers: Some banks offer cash bonuses or waived fees for opening a new corporate account with them. Compare these offers and see if they are worth taking advantage of.

Ease of integration: Look for a bank that allows you to integrate corporate accounts with other tools and platforms that you use for your business, e.g., accounting software, payment processors, and payroll services. This way, you will save time and streamline your workflow.

How to compare different corporate bank accounts?

To effectively compare various corporate bank accounts available today, do some research and analysis. Here are the steps you should follow:

Start by defining what you require from a corporate bank account. Say, you may need a checking account to handle daily transactions, a savings account to earn interest on surplus cash, or both. Don’t forget to consider your budget, cash flow, growth plans, and other factors that may affect the banking needs of your company.

Then, make a list of banks offering corporate accounts that match your goals. To find and filter different banks based on their location, size, reputation, etc., such tools as search engines, comparison websites, and directories come extremely useful.

As a next step, review the details of each account on your list. Meticulously compare the fees, features, services, interest rates, service quality, branch banking and ATM access, introductory bonus offers, and ease of integration of each account. Use online calculators, simulators, or charts to help you compare and visualize the differences between the accounts.

Based on the above comparison, narrow down your options to a few accounts that best suit your needs. Check the eligibility requirements and application process for each account.

Finally, choose the best account for your business and apply for it. Prepare the required documents and information for the application. These may include your business name, address, phone number, email, TIN, articles of incorporation, etc. Follow up with the bank and confirm the account opening.

NB: To ensure complete safety and compliance, contact International Wealth experts for helpful tips. They will be happy to offer some during a free introductory consultation. You're welcome to reach us using the corporate email or any of the contact phone numbers provided on the International Wealth website. Alternatively, leave your number with our staff and we’ll get in touch with you in no time.