Banks and credit unions are financial institutions that provide a variety of business banking products and services. The main difference between a bank and a credit union is that a bank operates for profit and is available to anyone, while a credit union is a nonprofit financial institution that’s available only to eligible members. Credit…
Banking
How to Open a Business Bank Account in 6 Steps (+ Checklist)
Opening a business bank account is an important step when starting a new business. By separating your business account from your personal account, you can be better organized and keep track of your finances more easily. Opening an account takes only a few minutes, but it’s important to be prepared and know what kind of…
Can You Use a Personal Checking Account for Business?
New business owners should understand the importance of separating business and personal finances. While it’s possible to use a personal checking account for business purposes, there are risks associated with commingling your business funds with your personal money. It can make accounting more complicated and can also affect taxes, which may put you at risk…
How a CD Ladder Can Maximize Your Money
A certificate of deposit (CD) offers premium rates. However, you cannot access your funds until maturity. If you want to take advantage of the higher rates CDs offer but don’t want to commit all your money to one long-term CD, you can use a CD ladder to help maximize your money and make your funds…
How to Choose a Bank for Your Small Business
The best bank for your business is the one that can meet most, if not all, of your business’s banking needs. It’s important to consider a bank that can help keep your finances in order and give you access to business loans and other financial products. You also have to decide which type of bank…
7 Ways a Business Savings Account Can Improve Your Cash Flow
As a business owner, you will need a separate business savings account, especially if you want to set aside extra funds for emergencies and future growth. A business savings account can provide you with the opportunity to earn interest and help build your finances. Without it, you’ll risk mismanaging your business resources. Do I Need…
What Nonsufficient Funds (NSF) Fees Are and How To Avoid Them
A nonsufficient funds (NSF) fee is charged when you write a check against an account that does not have enough money in it to cover it. The amount of the NSF fee varies per bank, with an average that ranges between $27 to $35. Knowing how to avoid NSF fees will help you maintain a…
Money Market vs High-yield Savings: Which Earns Your Business More Interest?
Money market and high-yield savings accounts allow you to save your excess business funds while earning interest. The major difference between money market and high-yield savings accounts is that money market accounts (MMAs) allow you to write checks while high-yield savings accounts don’t offer this function. Understanding the similarities and differences between these accounts will…
Money Market vs CD: Which Is Best for Your Business?
Business money market accounts and certificates of deposit (CD) are deposit accounts that allow you to earn interest. A money market account combines the functionality of both savings and checking accounts, while a CD is a term deposit that offers a fixed interest rate upon maturity. The best account for your business depends on your…
6 Best Credit Unions for Small Business in 2021
Credit unions often provide the same types of financial products as banks. What’s nice about credit unions is that they prioritize customer satisfaction, making them a good alternative to traditional banks. The best credit unions for small businesses offer a secure place to deposit your money, opportunity to earn interest, affordable loan rates, easy access…
Money Market vs Savings Accounts: Where Should You Put Your Business Cash?
Aside from owning a business checking account, business owners will also benefit from opening another bank account to separate cash reserves from working funds. Both savings and money market accounts offer a safe place for your money while allowing you to earn interest. It’s important to understand the differences between money market accounts and savings…
Online Banking vs Traditional Banking for Your Small Business
One major difference between online banking and traditional banking is the way you can access their services. Online banks are designed for businesses that prefer to do their banking transactions electronically while traditional banks are best for businesses that need to transact in a physical branch. Online banks and traditional banks also differ in terms…