You have different options when it comes to creating corporate bank accounts. They include:
Checking
This type is suitable for day-to-day transactions such as payroll, vendor payments, utility bills, etc. It allows easy deposits and withdrawals and tends to have low transaction fees to encourage usage.
Features
- Limited liability protection. Limited companies have separate legal identities from their owners, meaning they are not personally responsible for corporate debts. One of the main conditions for registering a limited company is having a distinct corporate checking account.
- Loans. Financial institutions usually offer loans to businesses that open checking accounts with them.
Savings
Savings accounts are where you keep money you don’t need in the short term. You can store your profits and extra cash and earn a healthy interest rate. You can shop around for banks offering the best interest rates and get an opportunity to grow your cash holdings.
Features
- Higher interest rate. Savings accounts earn more interest than a checking account.
- Insurance. Your savings is insured by the Federal Deposit Insurance Commission (FDIC) or an equivalent agency in your country.
Money Market Accounts
A money market account (MMA) functions similarly to a savings account. But it offers higher interest rates in exchange for certain restrictions. The minimum deposit amount is usually high, and you can't withdraw your funds as freely as with typical accounts.
Features
- High interest. You get higher interest rates than what banks usually offer for savings accounts.
- Better Insurance. MMAs usually have extra insurance in addition to what the government offers. This extra insurance is needed to protect high deposits.
Certificate Of Deposit
Certificates of deposit (CDs) are investment instruments that banks sell to customers. They work just like savings accounts, even if they aren’t legally structured as one. They offer relatively high interest but with certain restrictions.
Features
- You must agree to lock in your funds for a specific period, e.g., 3, 6, or 12 months. Early withdrawals will attract significant penalties.
Merchant
A merchant account allows you to accept payments online. You can collect payments from customers' credit and debit cards. Any money paid by customers will be deposited in the merchant account first before going to the main one after processing.
Features
- Customer protection. Banks offer features to protect your customers’ information from prying eyes.
- Flexibility. You can have a lot of flexibility with merchant accounts. Customers can pay with different types of credit/debit cards, and you can get the payments quickly.
Foreign Currency Account
Foreign exchange accounts allow you to transact in multiple currencies from a single account. For example, you can hold the U.S. dollar, Canadian dollar, Japanese yen, and Chinese yuan in the same account. You can monitor the real-time balance of each currency.
Features
- It gives you easier access to foreign exchange. You can manage multiple currencies from the same account instead of holding one main currency and converting each time you need another one.
- Foreign transactions. You can send or receive foreign currencies seamlessly. This makes it suitable for businesses serving global customers.
Conclusion
We have explained the six best options for opening corporate accounts. The good news is that you can open a business account quickly and easily. You can do that either online or in person.
