As a business owner, it’s important to keep your finances in order. This includes minimizing unnecessary bank charges. There are many ways to do this, and we will discuss 10 of the most practical methods in this blog post.
Follow these tips and you can keep more of your hard-earned money in your pocket!
To run a successful business, you should try as much as possible to minimize expenses and run costs against income. You should pay attention to all costs, down to bank charges, as every penny counts. Bank charges come in different forms. They could be monthly or per transaction made, and they could also be transaction costs and the like.
When you want to make a decision on which bank to use for your business account and to avoid unnecessary bank charges, it is important that you make a decision on which bank meets your needs and also the cost as regards bank charges and maintenance fees.
Charges that are associated with business accounts include;
- Minimum Opening Balance
- Minimum Operating Balance
- Online Banking/ATM
- Cheque Book
- Account Maintenance Fee
- Transaction fee
- Monthly charge
For the simple and best remedy to these unnecessary bank charges and the best banking experience, you simply have to do one thing:
Switch to the best business bank account for your needs. Switch to Lenco!
At Lenco, we provide affordable banking solutions to businesses; you do not have to drown in bank charges or fees. With Lenco, you will be able to run a business account with minimal cost in order to successfully grow your business.
You get to have a smooth business banking experience without having to pay these exorbitant fees in order to maintain the account. You get to perform transactions seamlessly online, with our Internet banking and the app. There is access to 100% human support if you need assistance.
You can also open your business bank account from the comfort of your home via this link: https://lenco.co. Our accounts are easy to open, maintain, and operate.
Open a Lenco Business Account today. With Lenco, you never have to worry about incurring unnecessary bank charges. Business banking is made easy!
10 Practical Ways to Avoid Unnecessary Bank Charges
It is important to know the fees associated with your account. These expenses can be avoided by following these tips:
1. Know the fees associated with your account
You have a choice. You can decide to pay the fees, or you can choose not to. If you don’t know the charges associated with your account, ask your bank for details. If they give them to you and they’re too high, consider looking for another bank that charges less.
2. Avoid withdrawing from ATMs too frequently
If you’re using an ATM often, it is likely to be more costly than the network fee. You should also avoid using the same machine for small amounts, as this will result in higher fees due to low transaction volume.
If possible, use a credit card instead of cash for small purchases and pay off all outstanding balances on your business account every month so that there are no overdrafts or unnecessary bank charges associated with cash withdrawals from ATMs.
3. Don’t overdraw your account
Overdraft fees are a form of penalty. They are not charged for using your account, and they do nothing to help you avoid overdrafts. They only exist to make money for the bank, and if you’re paying them, there is no reason why you should have an overdraft in the first place!
They are also interest charges; this means that when you withdraw money from your checking account, they will charge interest on top of that withdrawal until it becomes higher than what was originally deposited into your account.
This is called “penalty stacking” because all these fees add up together over time; so even though none of these transactions was necessary (like buying groceries), they still cost more than necessary because they have been stacked onto one another over time due to their nature as penalties rather than useful utility services
4. Reduce fees initially by bargaining
If you have a business account, it’s likely that your bank charges you fees on top of the interest rate.
If you don’t want to pay unnecessary bank charges, try negotiating with your bank. You can ask them to reduce or waive any transaction and service fees associated with using their services. If they don’t agree with what you’re asking for, then perhaps it’s time for a new bank account!
5. Set up direct deposit
Direct deposit is a great way to avoid ATM fees. It also allows you to set up automatic payments so that your bills get paid on time and don’t bounce.
If you have a business account, direct deposit can be set up for all of your bills—including electricity, water, and phone bills—as well as other services like internet or cable TV subscriptions.
6. Be careful when requesting checks
You can also be careful when requesting checks. Check the cost of a check before you order it and make sure that it is not too expensive, or too small. Be sure to check how many checks are included in each pack so that you can choose which packs to buy depending on what works best for your business needs.
If you notice that there are no charges when ordering these products, then this may mean that some banks have changed their policy about charging customers when receiving them as part of a package deal or promotion.
7. Sign up for an online banking alert service
With online banking, you can set up an alert service with your bank to let you know when something is happening with your account. This is particularly useful if you have a lot of transfers or deposits in and out of the account, as it’s easy to miss those payments when they’re made.
The alert can also be sent via text message or email, so even if the phone bill doesn’t allow for these messages anymore, there are still options available!
There are many different types of alerts available depending on what type of service provider (or “banking system”) they use – but most banks offer some form of notification system so that customers don’t have to worry about forgetting about any payments due.
8. Try to maintain a minimum balance in your account.
To avoid unnecessary bank charges:
First, try to maintain a minimum balance in your account. If you have no other way to make payments or receive funds from the bank outside of this requirement, then it is likely that you will be charged fees on each transaction made through your business account.
Second, consider getting rid of all checks and ATM transactions if possible as these are often associated with higher fees compared to credit cards or debit cards due to their convenience factor (you don’t have to wait for them).
9. Stay away from costly overdraft fees.
- Avoid costly overdraft fees.
- If you do overdraw your account, the first thing to do is contact your bank and ask them to lift the limit on your card. This will help prevent unnecessary bank charges from being incurred if there’s not enough money available in the account at any given time.
10. Set up an automatic savings plan.
If you want to stop unnecessary bank charges in your business accounts, set up an automatic savings plan. An automatic savings plan is a way to automatically transfer money from your checking account to your savings account. You can set one up so that it transfers a certain amount each month, or every week.
For example: If you want to save for a specific goal (such as buying a new car), then set up an automatic transfer so that the amount is transferred into that account every month or week.
This way, even if there’s not enough money in your checking account at any given time, it will still be topped up in order for this automatic transfer process and therefore remain active until such time as there are sufficient funds available again for when the next needed – which means no more overdraft fees!
Unnecessary bank charges can be expensive, but they are preventable.
If you’ve ever had to pay an overdraft fee or lost out on interest because a bank account was closed without warning, then you know how frustrating it is when your business’ finances are disrupted by these unexpected charges. Fortunately, there are some things that can be done to avoid this issue in the future.
If you want to avoid unnecessary bank charges, it is important that you know what they are and how much they cost. You can also set up alerts so that you are notified when certain events occur on your account.
If there is still a balance left in your account after all these steps, then consider transferring it to another bank or paying off the principal amount first before doing this.
Switch to Lenco today, and you never have to worry about unnecessary bank charges.