Thursday, September 17, 2009

Choosing a Bank for your Business can be Frustrating!

When it comes to businesses and banks, fees can make you poor and crazy. So while I honestly can’t say there’s been any Bank that I found just a joy to work with, I was pleasantly surprised with the current deal they are offering, even with the basic checking account. AND the deal is good for the life of the account. (Don’t you hate that with the cable TV companies where you get a super deal at first then they basically hand you your backside on a bill?)

So, here’s the deal, at least in California: If you use the Bank of America debit card on the business checking account at least once a month, they waive the fee for the upcoming month. This is actually a great deal. You could pay for a seminar, buy some paper or postage, whatever! And as long as you do that monthly, you save at least $14.00 a month in fees. I say at least, because I’ve yet to find a physical bank that doesn’t have what I call a “tolerance charge.” Those are the fees they charge me to put up with me, and everyone other business owner, being a customer. A fee to tolerate my business! Grrr…If your business has a close profit margin, you’ve got a nightmare in this one.

For example, lots of banks charge you 20 cents a check on a deposit. Well, if your customers purchase an average of a couple hundred bucks of stuff a time, okay, not so painful. If you make many small-value sales, say a lot of individual books at $25.00 each, those feeds ad up fast and furiously. The percentage charged by a credit card company is not really worse.

So I’m pleased with the option from Bank of America to collect that fee from some OTHER merchant at least once a month and give me a little more grace on the fees as their customer.

I suggest, if you’re in the market for a business checking account, this promotion is at least worth a look. And local banks, vs. big organizations, are often an even better choice. That’s where I’ve got my personal money! And that’s a long story for another time…

Wishing you Success & Heart,

Heidi Sue Roth

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