Seven Ways to Save Money at Your Bank
Choosing the right bank for your business involves more than finding the branch closest to your office. As a business owner, you may be able to lower banking costs and enjoy other benefits by choosing a full-service bank that delivers business benefits every day.
Here’s what to look for:
1. Bundle your business accounts. Bundling your commercial checking and savings accounts, as well as credit and debit cards, can help cut down on routine bank fees. Having business loans at the same bank can help you even more. The objective? To create a long-term, diverse relationship with your bank – a relationship in which your bank knows you and your company, and you know what to expect when it comes to delivery of banking services. Relationship banking benefits the bank offering services, as well as the businesses that employ those services. Talk to your bank representative to make sure you’re getting the most services for the best price.
2. Sign up for remote deposit services. You can save time and gas on trips to the local branch by transmitting images of checks to your bank through a desktop scanner. Also ask about automated clearing house (ACH) and electronic funds transfer (EFT) services to access revenues faster and more conveniently.
3. Add commercial account overdraft protection. Overdraft protection is a credit line tied to your checking account. When you write a check that depletes account holdings, your bank covers the check by accessing your overdraft credit line. This can help you avoid the expense of overdraft fees as well as the embarrassment of bounced checks.
4. Add controlled disbursement services. Control your account assets with the assistance of your bank. Controlled disbursement services:
- Show you which checks and other payments will clear each day, which may help you avoid overdrafts;
- Keep business capital in interest-bearing accounts longer, until you actually need them to make a payment.
- Can be used to set up automated routine payments;
- Let you make all routine payments on the same day, or as funds become available, adding flexibility to business money management.
5. Work with your bank to help detect and protect against fraud. Set up an early warning system to alert you to account errors and unapproved access to business accounts. You can also notify your bank of pending payments and request verification before payment is made, helping ensure that your cash ends up in the right hands. Fraud detection services can warn you about coding errors, multiple postings and suspicious account activity. For example, Nevada State Bank’s Positive Pay service interfaces directly with the teller system, so any checks presented in a branch can be verified against your issued items on file. An optional feature provides an additional level of security by allowing the bank to match the payee’s name as well as the traditional check information (serial number, amount and issue date).
6. Sign up for Electronic Report Delivery (ERD). With ERD you receive daily reports online showing all account activity so you can notify your bank of errors or suspicious activity. These online reports use the latest in encryption technology so electronic reports are seen only by those to whom you grant access – people like your company bookkeeper or accountant. With ERD you can track electronic transfers, paper check deposits, cash deposits, and all withdrawals for more accurate, up-to-date recordkeeping.
7. Meet your bank’s branch manager. Make friends with the local branch manager. These highly trained professionals can recommend the services and products your company needs to save business capital, and deliver client care along with a friendly handshake and a smile. By creating a solid business relationship with the local branch manager, your company can be recognized as a valued bank client, and that may work to your advantage if you need extra help. Make an appointment to meet your branch manager to explain your business model and your commercial banking needs. Then, let these account management professionals help you set up your business banking procedures to derive maximum benefit at the lowest possible cost to you.
Expect more from your bank than a free calendar during the holiday season. Develop a beneficial partnership and enjoy the convenience and security full-service banks offer.
The information provided is presented for general informational purposes only and does not constitute tax, legal or business advice. Any views expressed in this article may not necessarily be those of Nevada State Bank, a division of ZB, N.A.