Chase: Best For Small Business Credit Cards
Chase offers some of the top business checking account options on the market but where the bank really shines is its business credit card program.
The bankâs Ink suite of cards, as well as a number of co-branded cards, are some of the most substantial cash back and rewards points credit cards for small businesses.
Chase Business Checking Accounts
There are three Chase business checking accountsâBusiness Complete Banking, Performance Business Checking, and Platinum Business Checking.
- No fees for returned items, overdrafts, NSFs, stop payments, or incoming domestic wires
- Free check deposit whether in-person or through the app
- Free eStatements and cashierâs checks
- Customer support via phone, via email, or in person
- Online and app banking
The only fees charged on an NBKC checking account are for sending a domestic wire and sending or receiving an international wire . Moreover, NBKC gives you the option to add ACH credits and debits, as well as desktop deposit to your account for low monthly fees.
Additional Services From NBKC
- Business money market account with an APY of 0.05% and business certificates of deposit with an APY of up to 0.30%
- Multi-factor authentication for all accounts
- Treasury solution options such as fraud management, bill payment services, and cash management
- Business loan options
What The Banker Is Saying And Not Telling The Would
To be fair, the banker is probably just doing his job. That is, he’s offering this young man products the bank has available. In all likelihood, the bank has no investment vehicles more aggressive than CDs. As a loyal employee of the bank, the bank officer is attempting to steer this investor in that direction. It may even be that the nine-month CD is the best deal in the banks CD portfolio.
But that doesnt mean its right for this customer. It makes you wonder how many other bank customers are similarly being directed into safe, low-yielding instruments for what should be aggressive investments.
Most banks have nothing more aggressive than CDs, so this is a likely outcome. This particular banker was probably not keen to disclose that limitation. After all, he can’t offer what he doesn’t have.
Some banks do have an investment arm, or an affiliation with an investment management firm. But even these aren’t typically the best places to invest your money either.
Bank related investment firms are run mainly like traditional financial advisors. Because they often work on commission, where they get paid to recommend certain investments, their primary interest may be in selling you something that isn’t necessarily suitable. That opens the possibility of your account being churned and the likelihood of paying high fees.
This is why I say it’s a big mistake investing through your bank. Banks certainly have their place, but not when it comes to investing.
How Can Someone Determine Whether A Bank Is The Right Fit For Them
Tania Brown, CFP:
“Obviously, you want to make sure it’s FDIC insured. Also, your banking experience do you like walking into a bank? Well, then you need someone local. Do you just not care if you ever see your bank? Then you’re okay online. Do you write checks? Do you not write checks? So it’s thinking through how your experience with it is going to be before you make that decision.”
Laura Grace Tarpley, Personal Finance Insider:
“I would look for the bank that charges you the least in fees. This means either no monthly fees, or you qualify to waive the monthly fees. If you never overdraw from your account, then a bank’s overdraft fees won’t matter much to you. But if you occasionally overdraw, then I’d look at the fees or overdraft protection options.”
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We believe everyone should be able to make financial decisions with confidence. And while our site doesnt feature every company or financial product available on the market, were proud that the guidance we offer, the information we provide and the tools we create are objective, independent, straightforward and free.
So how do we make money? Our partners compensate us. This may influence which products we review and write about , but it in no way affects our recommendations or advice, which are grounded in thousands of hours of research. Our partners cannot pay us to guarantee favorable reviews of their products or services.Here is a list of our partners.
Bank Of America Advantage Plus Banking
Waived with direct deposit of $250 or more or $1,500 daily minimum balance each statement cycle
See offer page for more details
Of its three checking account options, Bank of Americas Advantage Plus option is the standard choice to get a full suite of services including check writing and overdraft programs with fairly easy ways to avoid the $12 monthly fee. You can receive monthly direct deposits of at least $250 or maintain a minimum daily account balance of at least $1,500, among other options.
Bank of America also offers the Advantage SafeBalance account, which can help frequent overdrafters. In lieu of charging overdraft fees, the bank simply declines transactions if the account holder doesnt have enough funds in checking. But the account comes with downsides, such as the inability to write checks and a $4.95 monthly fee thats hard to waive for non-students. The only interest-bearing checking account, Advantage Relationship Banking, requires at least $10,000 at the bank to avoid a $25 monthly fee.;Interest is minimal.
Being enrolled in the Preferred Rewards program also helps you dodge the monthly fees.
You can earn a $100 bonus for opening any of the three accounts. See more details at Bank of America’s offer page. And see more options at;NerdWallet’s list of best bank bonuses.
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Is It Bad To Have Multiple Bank Accounts
While there are legitimate needs for having multiple bank accounts, it is possible to have too much of a good thing.
All accounts should be checked regularly for changes to rates and fees and to make sure no unauthorized transactions are occurring.
You should keep your own records of transactions and regularly balance your records against the bank’s statement.
If you reach a point where you can’t keep up with monitoring all your bank accounts, it may be a sign you have too many. See if there is any overlap between how you use some of these accounts so you can combine them. Just make sure that, in doing so, you don’t exceed the FDIC insurance limit.
Do Millionaires Have Multiple Bank Accounts
How much money you have shouldnt determine how many bank accounts you have. Instead, you should have a system in place that makes your budget work and puts you on target for achieving your financial goals.
That said, millionaires likely do have multiple bank accounts out of necessity, no matter how they organize their finances and segregate funds. Because the FDIC only offers insurance on up to $250,000 in funds held with the bankno matter how many bank accounts are open.
Therefore, millionaires want a better system for managing their bank accounts as well as any investment accounts or other financial resources they own.
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You Can Save On Banking Fees When You Have More Options
Banks will often give you a discount or waive monthly fees if you have all of your financial products with them. With this said, they will also make changes to their service charges at any time. Since you have only the one account, comparison shopping is harder. Banks know this. Theyre well aware of what a hassle it is to change banks, so they rely on you leaving everything as is. This way, they can continue to charge you high prices, even if you initially were given a discount.
With two bank accounts, you can compare the costs of specific services and make changes quickly if you need to, without any hassle since your second bank account already exists.
Thats the problem with only banking with one bank: You get lazy. You assume the bank is giving you the best deal, even when they arent.
Get Access To Funds In Case Of Failure
Even if you have less than $250,000, it is advised you invest your savings into different savings accounts. Suppose you have $100,000 and invest all of it into a single online investment bank. If that institute goes under for some reason, it would still take time for you to get access to funds through FDIC.
Dividing your investment into multiple savings accounts ensures that you will always have access to some funds to meet your needs.
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How Much Should I Have In Retirement Savings In My 40s
You may be entering your peak earning years during this decade while balancing childcare expenses, mortgage payments, and saving for your children’s post-secondary education. The;rule-of-thumb;is that you should want to aim to have three times your income;saved for retirement by the end of your 40s.;
Meet Multiple Saving Goals
One of the main rationales for opening multiple savings accounts is to track the amount of money you can save for each individual savings goal. For instance, if you are looking to make the down payment for a new home, set money aside for next years vacation and keep some funds aside for an emergency, then you can open three separate savings accounts and deposit money into each of them.
This will help you organize your goals and reach them more easily letting you know how close you are to achieving each individual goal.
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Determining Which Bank Account To Open
Once you decide where to bank, follow these tips for account selection.
Set a goal. Your reason for opening an account will dictate the type of bank account you should open. For example, you might want to write checks to pay bills or establish an emergency fund so that you’re covered in the event of a job loss or surprise medical expense. Or, you might want to save for a long-term achievement like a down payment on a house. Pin down exactly;why;you want to save.
Open the right account type. Pick a bank account that accommodates your goal. For example, you might choose a checking account or savings account for everyday banking, a money market account for your emergency fund, or a certificate of deposit for your long-term needs. You might also want to set up a savings account at the same time you establish a checking account. Doing so will allow you to link the accounts and manually transfer money between accounts or set up automatic transfers to make it easier for you to save money on a regular basis.
Watch out for transaction limits. Savings and money market accounts limit you to six withdrawals or transfers in a month. Checking accounts aren’t as restrictive, but may only allow you to make debit card purchases and ATM withdrawals of up to a certain dollar limit each day. If you typically make purchases above that limit, you should open a bank account with a higher daily spending limit.
Should You Keep All Your Money In One Bank
When it comes to bank accounts, you may consider the most convenient option to be keeping all your money in one bank.;
Keeping all your money in one bank may be simpler, but depending on your financial circumstances, it may not be the best.;
For example, a second bank account may offer you a better interest rate which would allow your money to beat inflation long term. And for this reason, deciding how many bank accounts you should have does require some thought process.
Heres a quick breakdown of the pros of having one bank and multiple. Well explore these a bit more in the next sections.;
Managing accounts in one bank:
- Easy to manage and maintain from one institution instead of multiple
- A bit more protected from identity theft and potential fraud
Having more than one bank:
- Diversifying your money for budgeting and spending needs
- Better banking options pending your needs
- Higher interest rates in some savings accounts
- Testing out other banks services and perks
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How Much Do Bank Services Cost
Bank services are typically affordable. For an individual opening a checking or savings account, you may pay a monthly fee, but many banks waive the fee if you meet criteria like maintaining a set account balance. For services like depositing a check or withdrawing funds, theres no additional fee at most institutions.;
If you need a loan, shop several banks to find the bank offering the lowest interest rates and fees. Most traditional bank services are included when you open an account of any kind at a bank.;
Compare Bank Account Fees And Charges
To see all the fees and charges that apply to bank accounts showing everything from overdraft fees to foreign cash withdrawal charges use our;comparison tool
Fees can vary a lot between banks and accounts, with one of the highest fees being charged for going over your agreed overdraft limit .
Did you know you could save hundreds of pounds with an account that better suits your needs? If you regularly spend more than you have in your account, choose one that will give you an overdraft up to an agreed limit without charging fees and/ or with a low interest rate.
Read our Overdrafts explained page to understand how they work and how to cut the costs and avoid charges
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Are There Other Options Besides A Bank Account
Prepaid debit cards are a popular alternative to traditional checking. Also called reloadable cards, these cards work much like gift cards in that a cardholder can never spend more than the amount loaded into the card. Otherwise, prepaid cards let you make ATM withdrawals and debit purchases just like a regular debit or credit card. With no risk of overdraft fees and a similar experience to “real” cards, prepaid debit cards are a good way to provide practical experience for your child while also protecting their money from overdraft fees and overspending.
Most major banks issue their own prepaid cards that can be linked to regular accounts, allowing parents to schedule regular transfers from their own checking account to a child’s prepaid card. By replacing a cash allowance with regular transfers, you can introduce your child to the idea of making purchases through the use of an electronic account. Prepaid card programs at major banks also allow users to examine their transaction history through the same online apps and sites as regular deposit accounts, so your child will have the same chance at learning how to manage her finances as she would with a student checking account.
To Choose A Bank Thats Right For You Consider Your Current Financial Situation Your Existing Banking Habits And Your Future Needs
Then look for a financial institution that can provide the account types, products, services and additional features you want most.
Or you might decide that youre better off with more than one bank. Having relationships with more than one institution offers you greater flexibility for managing your money, while gaining access to a wider range of products, lower fees and better rates.
Whatever you choose, here are a few things to consider before you make your decision.
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Should You Have Multiple Savings Accounts
Like the question above, most likely. The opportunity to save money is too good to pass up.
The best way to use one of these accounts is for when you have excess funds from your wants account and want to hold onto it or invest in the long-term. This will allow you, if done correctly, a savings account that will grow over time with compound interest .
Another way to use it is for when you need an emergency fund, which should be separate from your wants and needs bank accounts as well as your long-term savings account. This savings account should be used as a last resort in case of financial emergencies or job loss.
If this ever happens, youll want some money that doesnt come with any strings attached and doesnt interfere with your other money needs. Consider adding funds into all of these deposit accounts when you receive your paycheck.
Couples can contribute to these simultaneously, or based on career stability.
For example, if one person in the relationship holds a steady job as a school teacher while the other works as a freelancer, the latter may wish to contribute more to the emergency fund due to less job certainty.
Having multiple accounts can assist with organizing your funds in alignment with your budgetary needs. Plus, it gives you multiple savings goals to target over time.
Jam Jar Budgeting Accounts
These accounts are sometimes called budgeting accounts or rent accounts. Theyre designed to help you budget.
High-street banks rarely offer these accounts. Instead, youll have to apply via a credit union or your housing association.
Often, therell be a fee for these accounts of around £3-£15, although your housing association might pay it for you.
A jam jar account lets you divide your money into different pots or jars.
You decide how much money goes into each pot. You do this by working out how much you need for your bills and how much is left over for spending or saving.
They also allow you to:
- pay bills by Direct Debit or standing order
- receive payments such as salary, wages or benefits.
A jam jar account might be right for you if:
- you want an account that helps you to budget
- you want to avoid charges for refused Direct Debits
- you rent a council or housing association property in which case your landlord might pay the monthly fee for you.
Find out more in our guide Jam jar accounts
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