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What Type of Business Account do I Need?

Chris Gottschalk

Chris Gottschalk About The Author

Nov 9, 2021 5:45:00 AM

If you’re starting your own business, you’re probably aware of the advantages a separate business account can offer. However, you might not be aware that most financial institutions, including First Alliance Credit Union, offer multiple business checking accounts, not to mention a business savings account. How can you tell which account is best for your business?

Fortunately, each type of business account has some clear delineations. When you know the features of each type of business account, like the ones First Alliance Credit Union offers, you should have a good idea of which account—or accounts—will benefit your business the most.

Basic Business Checking Accounts

Basic business accounts are meant for smaller businesses, such as “side hustles” and most single proprietorships. They have a low minimum balance requirement of $100, but if you increase your balance to $1,000, you can start earning dividends. Additionally, your first 100 transactions are free.

Manilla folder titled Guidelines | First Alliance Credit UnionIf you’re a little put off by the idea of a transaction limit on your business account, that’s understandable. Most people are used to using personal accounts, where there are few to no restrictions on how many transactions you can make.

However, if you’re a small business the odds are good that you won’t have to make more than 100 transactions each month. If you are consistently going over 100 transactions a month, it’s more than likely because your business has become very successful, and if that’s the case you might want to think about…

Premium Business Checking Accounts

Premium business checking accounts offer members 300 monthly transactions—three times the amount of a basic business checking account. However, they also have a higher minimum balance requirement of $2,500, with dividends available starting at a $5,000 balance.

The premium business checking account is a good choice for a retail business or a business with an actual brick-and-mortar storefront. You may also want to open a premium business checking account if your small business has become well-established and successful.

Non-Profit Business Checking

If you own a non-profit business, you’ll want to check out First Alliance’s non-profit business checking account. It has the same low $100 minimum balance requirement as a basic business checking account, with dividends available when your balance reaches $1,000. More importantly, though, a non-profit business checking account has no restrictions on how many monthly transactions you have!

Business Saving Account

Woman holding a piggy bank and smiling | First Alliance Credit UnionWhile you’re considering which business checking account is right for your business, you should also know that you’ll get a business savings account automatically when you open a business membership at First Alliance Credit Union. Like personal savings accounts, you can open your business savings account with just $5, and you can start earning dividends on your money right away. You also get unlimited deposits with your business savings account.

 

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Manage Your Business Finances With First Alliance Credit Union

Selecting the right business checking account isn’t difficult. You just need to consider how big your business is and how many transactions you’ll be making each month.

Once you’ve become a member of First Alliance Credit Union and selected the right business checking account for your company, you’ll want to explore the other business services we offer. Get a business loan to help your business take that crucial next step, a business credit card to help you manage expenses (and transactions!), or even a commercial line of credit.

We do our best to provide helpful information but we cannot guarantee the accuracy or completeness of the information presented in the article, under no circumstance does the information provided constitute legal advice. You are responsible for independently verifying the information if you intend to use it in any way. Additionally, the content is not intended to be reflective of First Alliance Credit Union’s products or services, for accurate and complete details about our product and service information you must speak to an advisor at First Alliance Credit Union.