When to switch business bank accounts

If you don't change a business account that doesn't work for your business, it can hurt your bottom line.

Fees that are too high, limits that are too low, and not enough business products can cut into profits and stop a business from growing. All of these are signs that you should start looking for a business bank account.

You're pushing it too far. If you go over the limits for transactions and cash deposits, it's likely that your business has grown too big for its business checking account.

Even though it might be tempting to just move up to the next level of account that your bank offers, now is a good time to compare limits, fees, and services at other banks.

Fees are too high or come as a surprise.: Some fees are normal, but the costs for overdrafts, wire transfers, and using an ATM vary from bank to bank.

For overdrafts, some business accounts charge $35 or more, while others charge $25 or less, and some don't charge at all.

Compare the fees at local banks, credit unions, and online banks to find one that works better for your business.

You can't get a loan for your business: If you can't get a small business loan from your main bank, look into other options. Smaller banks, credit unions, and institutions that help communities get money often have more flexible lending rules than big banks.

According to the most recent Small Business Credit Survey from the Federal Reserve, 82% of applicants at small banks got at least some funding in 2022, while only 68% of applicants at large banks did.

Small bank applicants were also less likely to say that the application process, the time it took to get the money, the interest rates, or the terms for paying back the loan were hard.

You need more products for your business: Your business may need merchant services, help with payroll, or a business credit card at some point. Even if these products are available at your current bank, you should look into rates, fees, and features at other banks and service providers as well.
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