How to Pick a Bank For Your Internet Startup

As part of launching your business, you need to create a separate commercial bank account. Even if the business is only yourself in the short term, for bookkeeping and tax purposes, a separate account is a must. While it might be convenient to set the account up at the same bank where you normally bank, it would be prudent to compare all your options. If you are about to get any significant funding for your business, it is essential to do this preliminary legwork.

Here are some rules of thumb:

1. Compare at least 3 banks
2. Stay local – a local bank has much more reason to take care of you
3. Don’t lock yourself in. If the bank you select turns out poorly, you are the customer, and should always be free to move
4. Always negotiate – even banks have some leeway in the fee structure if they want your business. Ask them to waive fees for the first year (if any), or ask for free checks.

Comparing Banks

Here are some points for comparing banks:

• Types of accounts (investment, CDs, checking, money-market)
• Interest Rates on the various types of accounts
• Fees and fee waivers
• Investment Services
• Business Loans – criteria and rates
• Familiarity with your industry
• Ease of on-line access
• Customer service – do you have access to a person?
• Ability to interface to your bookkeeping systems (ie, QuickBooks downloads)
• Ease and fees to interface with on-line sales, (Paypal, etc)

You may need prioritize these features. For example, if your favorite bank has great service and good rates, but does not interface with Quickbooks, perhaps you might choose it anyway, if interfacing is your lowest priority.

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