When it comes to running a business, savings accounts are just as important as they are for personal finances. Business savings accounts help you create a solid financial foundation while protecting your business from seasonal ups and downs. At Central Bank, we’ve been helping companies find success though personalized banking service and a range of account offerings, including savings. Here’s what you need to know about opening and managing a business savings account.
Why are Business Savings Accounts Important?
Unfortunately, business setbacks have a tendency to come out of nowhere. One emergency or unexpected expense, be it due to a natural disaster, employee theft or another issue altogether, can cause a domino effect of financial problems that impact your company and employees. Business savings accounts provide a cushion against unexpected cash outlays, and they offer you some flexibility to take advantage of growth opportunities that require liquid funds. In addition, your business savings account is the perfect place to set aside cash for anticipated costs such as tax payments.
What Makes a Good Business Savings Account?
The first thing to look for when exploring business savings accounts is whether the bank is FDIC insured. With so many online banking options appearing (and sometimes disappearing) with the blink of an eye, make sure to choose a bank with a history of reliable service. At Central Bank, for instance, we’ve been providing business banking services to our Houston friends and neighbors since 1956. Once you’ve found a bank with a trusted background and quality track record, you’ll want to look into the details surrounding the individual business savings account (or accounts) they offer. Is there a required opening balance? (As a general rule, your account’s balance requirements should match your expected business volume.) How do service charges factor into things? Are online or mobile banking options available? Put simply, you’ll want to do business with a bank whose operations and offerings match with what you need. Many banks, like ours, offer a range of options, allowing you to customize your account to suit your unique business. We recommend speaking with a banker to find your right match.
What Questions Should You Ask?
Banking is easiest when you can access your checking and savings accounts in one convenient place. Be sure to ask if there’s a seamless way to connect accounts. If you’re planning ahead for a large expenditure, ask about limits on the number of deposits or withdrawals you can make through your business savings account. Some accounts place a cap on the number of free transactions per month. Finally, ask about fraud protection and how the bank handles security and reporting. At Central Bank, for instance, we have a team trained specifically to get to the root of potential fraud, and they help to make our already secure systems even more so. We also offer a number of services aimed at increasing security surrounding your accounts. Positive Pay fraud detection requires a specified individual within your company to sign off on checks and ACH items presented against your business checking account. Meanwhile, Certificate of Deposit Account Registry Service® (CDARS) provides increased protection for business savings accounts with amounts of $250,000 or more.
With a dedicated banking team and four locations to serve your business, Houston banking is easy with our independent community bank. Let Central Bank help you meet your goals with small business loans, personal and business account options, and other offerings tailored to your unique business and needs. Give us a call or stop by a local branch to learn more.