5 Factors to Help You Choose the Right Banking Partner for a Current Account

Posted by John Judge on December 5th, 2019

All traders, retailers, entrepreneurs, and business owners need the right banking partner to grow. Whether you are setting up your business banking account for the first time, or feel that it's time for a change, this article will guide you. You can find a list of factors to consider while choosing the right bank for your business needs.

How to choose the Right Banking Partner for my Business?

1. Security of the Parked Funds

It is of prime importance that your bank should give you the confidence that your funds are parked securely and can be accessed anytime. Make sure that the bank you choose has a strong financial history and offers high liquidity. Always choose a bank that is approved by the RBI and avoid parking your funds in non-regulated NBFCs.

2. Personalised Services

While this is not an essential criterion, it can make all the difference. Look for banks that offer personalised services tailored to suit your specific business requirements. To give an example, the banking needs of a technology-oriented startup are different from that of a small retail trader.

By choosing a banking partner who offers customized solutions enables you to run your business at ease, without having to deal with cash flow problems.

3. Convenience Features

Business accounts are accessed more often than a regular personal savings account. Look for banks that make it easy to deposit and withdraw funds – not just at the branch but also at cash-deposit ATMs to access your funds outside of banking hours.

Other convenience features to look out for include:

• 24 x 7 banking via mobile banking, internet banking, cash deposit machines, etc.
• Availability of fund transfer facilities like NEFT, RTGS, IMPS, DDs etc
• Extended banking hours at the main branch
• An international debit card for your account
• Free doorstep cheque collection facility
• Additional perks like safety lockers, high cash deposit features and more

4. Minimum Balance Requirements

Look for a current account that requires you to maintain the lowest minimum balance. As an upcoming business, you cannot afford to lock your funds or pay penalties for not maintaining the MAB. So, it makes sense to choose banks that offer low or even zero MAB.

Overdraft Facility

As your business grows, you are likely to require extra funds. This is where an overdraft facility comes in quite handy. The OD is an agreement between the bank and the account holder, where the bank allows you to use more money than what is available in your account. Think of it as a temporary credit facility. You can repay the bank when you have adequate cash flow. Look for banks that offer you an overdraft facility to meet your emergency cash requirements.

The Bottom Line: Banking should be Convenient and not feel like a Tiring Chore

Ultimately, the bank you choose should feel like a trusted partner who is interested in the growth of your business. Look for banks that make it easy to schedule an appointment with the branch manager or appoint a dedicated account manager to handle all your queries and requests.

Finally, make sure to read the fine print – the terms and conditions of your chosen business account – fees, penalties, and other charges – to ensure that you make a smart decision, which works to the best benefit of your business.