If you feel uneasy about opening and using an online bank account, you’re not alone. It’s only natural to be skeptical of unfamiliar things. Probably you just aren’t convinced that online banking is a better solution than traditional banking. After all, you’ve visited your brick and mortar banks for years, and that seems to work for you.
But you don’t need to be a tech-savvy to open and manage an online bank account. In fact, it’s super easy. And you could be missing out the many benefits that the online banking has to offer. Especially the convenience and flexibility. What if we told you that having an online bank account is literally like carrying your bank branch in your pocket and being able to do your transactions from the palm of your hand?
If, as a business owner, you’re always busy and on the go, having an online bank account could save you time and the occasional headache. Same goes if you live in a community with limited banking options, or if you’re moving and you don’t want to change banks. Those are only a few examples. Keep on reading to know how a bank account can help you save money, manage your cash flow, stay on top of your finances, and overall how it can benefit you and your business.
Benefits of an Online Bank Account
1. Free checking
Free checking used to be available at almost every bank, but nowadays this is getting harder to get. Today, in order to qualify for free checking at traditional banks, you usually need to have your paycheck deposited automatically or to keep a large balance in your account.
Luckily, that’s not a requirement with your online bank account. Online banks offer absolutely free checking accounts and the only condition it to have at least one dollar to deposit. This is especially beneficial for small business owners who are just starting out their business and they don’t have a steady revenue.
Also, you can earn interest on cash in your online checking account. This interest rate isn’t as high as the one earned in a savings account, but anyway it’s more than what you’ll get at brick and mortar banks.
More importantly, you don’t need to go to the bank to open a checking account; you can do it online from your home or wherever you are. You’ll avoid traffic jams, waiting in long lines, and taking time off work. As a result, you’ll save your time, energy, and money as well.
2. Effortless money transfers
Small business owners often juggle their personal and business account, and it can be exhausting. With an online bank account, you can immediately move money between your own accounts (like your personal account and the one you are assigning to your business) whenever is needed. This action is pretty straightforward; it just takes a couple of clicks and you don’t need to be a tech-savvy person. These online money transfers are free if the recipient has both accounts with the same bank.
Being able to transfer your funds quickly and easily gives you a peace of mind when you have to make purchases or payments: you don’t have to worry you’ll run out of money in the account you’re using.
Also, with an online account, it’s possible to set up a regular payment schedule. This option is very convenient if you have a mortgage or business loan payments. You can rest assured everything will be paid automatically on the due date: you don’t have to remind yourself or mark your calendar. More importantly, this will help you avoid late fees and will help you build a good credit score.
3. Easy to monitor transactions
Having an online bank account will give you real-time insights into your account transactions. You’ll be able to monitor your finances easily and on the go, being always on top of your balance. It will also give you the opportunity to fix any delays in the payments you’re expecting. For instance, if any of your clients forget to make a payment or if a check you deposited hasn’t been added to your account, you can call a bank representative and resolve that problem on the spot. When you monitor your own business transactions, you’ll ensure the efficient flow of your business funds.
Also, with an online banking account, every transaction is recorded, so you can check your past transactions to make sure everything is right. This allows you to have complete control over your finances. Another benefit of recording your transactions is that it makes it easier to apply for a business loan because a lender asks for your bank activity and you’ll have everything ready in one place.
4. Extraordinary customer service
Given that online banks don’t have to spend money on full-time staff or buildings maintenance, they can invest their resources into areas with a positive impact on their clients. One such area is customer service.
With traditional banks, whenever you have some questions or concerns you need to go to the branch physically to resolve your issues. This usually involves some commute and waiting in lines. When you have an online bank account, you can manage everything from your laptop or mobile phone, meaning you don’t need to lose your time visiting brick and mortar banks. Your funds and information are always accessible no matter where you are.
If you need some help, online banks offer excellent customer service through calls, chat features or an app. This customer service is usually available even outside business hours, which will come in handy for busy business owners.
Also, digital banks can regularly collect data from their clients and make changes based on their clients’ needs. In this way, online banks can provide a better user experience and more convenient products and services for their customers.
5. Higher rates earned on your saving accounts
Unlike online banks, brick and mortar banks have large operational expenses to cover. That means they need to provide specialized buildings to store your money safely, hire and pay plenty of qualified workers, and maintain modern, up to date equipment. On the other hand, online banks don’t have all these expenses, so they have the available funds to be able to offer higher rates to their clients.
Having an online bank account will ensure you get higher interest rates on your saving accounts and certificates of deposit. This is a wise investment for small business owners that will provide them with more additional funds.
With an online bank account, you aren’t kept in the dark anymore. You have the power to directly and immediately oversee your cash flow. Before, you would have to wait for your bank statement or go to the ATM or branch to check your balance. That’s so time and energy consuming for a business owner who can afford to waste time.
Now, you can even set alerts when your cash balance is low. When you have visibility over your cash flow, you will be able to manage your cash better. And this makes it easier to invest in your business or apply for a business loan if you need a capital injection for growth.
More importantly, when you apply for a business loan, your lender will want to access the last few months of your bank activity. At Camino Financial, for example, we access the last six months of online bank transactions. This is completely safe and private process that saves you time and paperwork. If you are ready to take that step, apply for a business loan today.