6 Strategies to Reduce Business Banking Fees
Whether you are a veteran business owner or you are pioneering a new venture, the benefits of a flexible business banking arrangement cannot be understated. In fact, there are some ways that businesses can reduce banking charges on the products they already use.
Here are six suggestions we offer to our own commercial clients who want to lower banking fees:
- Look for Earnings Credit Rate (ECR): Some financial institutions offer an Earnings Credit Rate (ECR) on business banking accounts, which pays you interest for maintaining a certain dollar amount. The advantage to the ECR is it can be used to offset banking fees associated with your commercial accounts. One caveat: Be sure that you are only being charged a fee for services that you actually use.
- Switch to Electronic Funds Transfer (EFT): Do you accept credit card payments from clients? If so, then consider switching to EFT, which allows customers to pay you directly from their bank account. The funds are deposited into your bank account within a few business days, often for no fee or less than it costs to process credit card payments.
- Automate Your Payroll Process: If you are still issuing paper checks to employees, now is the time to transition to direct deposit. This form of automated payment is a more cost-effective option, and you may be able to save even more money if you belong to a bank that offers treasury services.
- Utilize Online Bill Pay: Do you still write out checks to pay your bills? If so, then you could be saving money by enrolling in the online bill payment program through your banking institution. Not only do you eliminate the cost of paper checks and postage, but you also spend less time getting the funds to your payees. Another thought about online services: check to see if your bank is charging for paper statements and, if so, be sure to change over to the electronic versions to avoid fees.
- Check Account Fees: Speaking of fees, If you haven’t checked the policies on your bank accounts lately, then you should do so in case there have been any updates. You may be eligible for a fee waiver if you maintain a minimum daily balance, enact overdraft protection, use a debit card a minimum number of times per month, etc.
- Go Inside the Bank: With all of the conveniences of electronic banking, it may be rare for you to step foot inside the lobby. However, we suggest a visit to your banking representative, who can review your financial history and see if there are other ways you could be reducing your banking fees.
Above all, it is important for every business owner to stay involved with their business banking accounts and to ask questions if and when new fees are introduced. You never want to miss an opportunity to lower or eliminate charges that can advance your goals of generating a profit and growing your company.