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hey everybody andy here how you doing good to see you have you started your own small business or are you planning to or maybe you have a side hustle that might get more serious if yes to either of those do you have a separate bank account for that business if you don't you might want to consider it there are lots of reasons it's a great idea to separate your business and personal finances so in this video i will go over what i think are the best business bank accounts out there there are already quite a few videos on this topic but so many of them just repeat the same accounts most of which i don't think are the best options so i wanted to put together a list of options you might not have previously considered if you're already convinced you need separate finances and you just want to know what my top pick is well then spoiler alert my top pick is mbkc bank if you want more detail than that or you want to know what the other banks on my list are then hang out with me for the rest of the video because i'll go into detail about the different banks each of their features and why you should consider them if all watching it get some useful info out of this video then please be a friend and click that like button and consider subscribing to my channel i cover all things money and would love to have you stick around so before we get into the banks let me break down why you should consider separating your personal and business finances there are lots of great reasons one of the more superficial reasons but still a valid one is that it's much more professional if someone is paying you it's better that they pay a business name versus your personal name it lends more credibility for example think about how professional it sounds when i tell someone to make the check out to your friend andy global conglomerate industries llc instantly impressed really though having a business name on your invoices makes a big difference my number one reason for having a business bank account is simply to separate my finances having financial separation between your business and personal finances is incredibly important it makes it way easier to track your business income expenses and finances in general also if you were to ever get sued and i hope that that never happens then your business finances are separated from your personal finances thus offering a layer of protection for this protection you would also need to have filed for your business to become a legal entity like an llc having a separate account makes saving for things like taxes so much easier having a separate account with a separated budget makes life a lot less complicated separate a lot saying separate a lot now there are even more benefits but that covers a few that mattered most to me when i was setting up a business account so now that i've covered the benefits of setting one up i want to get into the accounts i've chosen for this list for an account to make my list it needs to meet most or all of my requirements the requirements i have for an account might be a bit different than what you need but it should still be a great starting place first these accounts need to be easy to sign up for online no big lengthy process required especially at a physical location these accounts need to allow unlimited transactions i don't like limits on how much i can use my account so unlimited transactions is a must the accounts need to have no minimum balance this isn't because i want to always be scraping by but i just find balance requirements stressful some accounts out there require five thousand dollars plus to waive the monthly fees what i think it's probably crazy for most people especially if you're just getting started out the last requirement is the only one i'm a bit less strict on but i find it to be a big bonus if a bank offers a great business savings account or money market account alongside the checking account again not a deal breaker but i think it can be highly valuable i really like having a nice savings or money market account at the same bank as my business checking account so that i can stash away my federal income tax and state sales tax savings that way i can earn interest on these large amounts of money that i have saved for paying taxes and keep them organized and separated from the checking account and active money okay on to the banks number one on my list like i said the beginning of the video that's my hand motion for the beginning of the video my first bank on the list is nbkc at first glance my number one choice might seem strange in bkc stands for national bank of kansas city you might be wondering why i'm recommending a kansas city bank to people who might not live there well if you can get past the name which i'm sure you can then this is my current favorite and the bank i use yes they are based in kansas city but they are effectively an online bank for most people like the rest of the banks in this list they offer business checking and money market accounts their business checking account only requires five dollars to open has no minimum balance no monthly fees no overdraft or non-sufficient fund fees they allow for unlimited transactions it comes with debit cards that can be used at 34 000 money pass atms in the us and puerto rico if you use the debit card at a non-network atm they will refund up to 12 in atm fees each month globally to pair with the checking account they offer a business money market account these accounts pay 0.4 percent annual percentage yield no matter the account balance like the checking they have no fees or minimums this account doesn't require any money to open another big upside to mbkc is their customer service and their dedication to small businesses when the pandemic started and everything closed down our own small business lost 80 to 90 percent of our expected income when the small business administration announced the paycheck protection program the ppp where small businesses could get access to highly needed funds i was very quick to apply through our business bank at the time chase well if you read the news articles about it you can see that chase basically ignored a lot of their customers especially their smaller ones and made the whole process a giant mess i waited for so long before i finally got fed up and tried elsewhere i applied at paypal and lindeo even with those additional places i just kept waiting this was kind of the last straw for me with chase so i switched to nbkc i asked them about applying for the ppp and just a few days later they had me approved and funded all the while they were responsibly communicating with me via email that experience sealed the deal for us showing us just how much more they care about small businesses second on my list is blue vine founded in 2013 blue vine is a thin tech company with some pretty cool banking offerings their primary business product is a checking account the checking account features no monthly fees no non-sufficient fund fees no incoming wire fees unlimited transactions no minimum balance and i think the absolute best feature of this account is if you have at least a thousand
Thanks for your comment Kassandra Ricciardi, have a nice day.
- Jarrod Averitte, Staff Member
do you go with one of the big three banks how much is it going to cost you what paperwork do you need will you even get approved and finally you're thinking i just wanted to follow my dreams i don't like it here it's it's scary now i know that was kind of intense but let's be honest the struggle is real but don't shut down i'm here to help one of the most common questions i get when i'm talking to new business owners is do i need a business checking account and when i say yes you absolutely need a business checking account the very next question is well which bank should i choose if you're serious about starting a business then you should operate as a business right out of the gate and this means separating your business money from your personal money and putting a solid accounting foundation into place i'm a firm believer that mindset plays an important role in moving you through life and this is true in business as well if you go into your business with a timid mindset then you can expect timid results however if you start your business off knowing that you are going to operate as a business and expect great results then those are the type of results that you're going to achieve i'll get off my soap box now so we can talk about business bank accounts i know it can be difficult choosing a business bank account and being anxious about the documentation that you're going to need to apply and whether your business is going to get approved you're researching probably watching multiple youtube videos and now you have all of these facts and figures and features floating around in your head and you're not sure which way to go do you go with one of the big three banks how much is it going to cost you what paperwork do you need will you even get approved and finally you're thinking i just wanted to follow my dreams i don't like it here it's scary but my goal in this video is to give you my top picks for the best business bank accounts and then organize the information in a way that makes it easy for you to choose the bank account that's right for your business there's no one size fit all bank account or there's no best bank account or the perfect bank account it's really going to depend on what you need for the type of business that you're running i want you to sit back relax and take a deep breath i don't even want you to take notes i'm going to take care of all of that for you i'm going to wrap all of this information up in a nice bow and leave it for you in a pdf all you have to do is look down in the description click on the link that i'm going to give you and download it it will have all of the banks that i'm going to cover in this video and i'll put it in the form of a comparison chart so you can see each bank account compared to the other and make an informed decision i'm also going to leave timestamps in the description so you can go back and cover the features of each one of the banks if you want a refresher after watching the video now i want you to be relaxed so i'm gonna relax with you i'm gonna move into my bedroom and then we're gonna cover these bank accounts okay much better are you comfortable let's go ahead and review some business bank accounts when it comes to a business checking account the features that you're going to look for are a little bit different than with personal checking some of the core features that you want to pay attention to are bank fees because we want to hold on to all of the profits that we can transaction limits because you're going to be moving money into and out of your business bank account in different ways so you really want to take note of the transaction limits that might be placed on your business checking account accessibility meaning how are you going to be able to access your money you want to take note of their online banking platform their mobile apps and the atms that you'll be able to use with that bank account integration with third-party apps because you are running a business and there will be other platforms or apps that you need to integrate with to automate certain portions of your business especially if you are a one-woman or one-man show you want to make sure you can automate as much as possible because we all know that it's a lot running a small business especially by yourself and then finally you want to make sure that your money is secure so you want a bank account that is of course fdic insured just to keep things organized i'll go over those core features and i'll use the same format i'll give you a quick overview of the bank account i'll go over the fee structure the pros and the cons and then the requirements for opening an account i'll leave links in the description to each one of the bank accounts that i'm going to go over and for full disclosure some of the links may be affiliate accounts which means that i'll make a small fee if you decide to choose that bank let's start off with mercury mercury is a financial technology company and not a bank their banking services are provided by choice financial group and evolve bank and trust mercury is an online banking platform that offers you a business checking account and a savings account mercury is specifically designed for startups which means that they are not available to sole proprietors mercury's free structure is pretty simple they don't charge for most of their standard services however they do charge for their advanced features there are no account minimums overdrive fees monthly fees or account opening fees they do charge a one percent fee for currency exchange let's go over the pros and cons for mercury on the pro side we have that they include a checking and a savings account within one platform they have no monthly fees transaction fees or a minimum opening deposit you get unlimited fee free transactions a savings account that is held to the federal maximum of six total transactions per month and that's going to be with most of your savings account because that's the federal rule they have physical and virtual debit cards and you get access to over 5 500 fee-free atms with the all point network they also have advanced digital tools including api access to automate and customize your banking when it comes to cons for mercury a big one is that they are not available to sole proprietors again they are designed for startups a second con for mercury is that you do not have the ability to do cash deposits you have to move money into your account using different methods when it comes to the requirements to open an account with mercury you'll need a u.s company with a federal ein your company is official formation documents a picture id and that's a government id which is like a driver's license or a passport next up we have relay relay offers a free online business account for businesses that want to integrate their banking and cash management services relays banking services are provided by evolve bank and trust relay stands out because they give you up to 20 fee free bank accounts and that's 10 if you're sold proprietor and they also give you up to 50 virtual or physical debit cards so this is a perfect account if
Thanks credydauU your participation is very much appreciated
- Jarrod Averitte
About the author
I've studied print journalism at Saint Mary's University of Minnesota in Winona and I am an expert in history of archaeology. I usually feel energetic. My previous job was narcotics investigator (government) I held this position for 28 years, I love talking about handball and photo: andrew ridley. Huge fan of J. M. Power I practice tennis and collect pez.
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