This is kind of a follow up to a different thread ...
# generalf
fast-megabyte-10597
10/03/2023, 2:55 PMThis is kind of a follow up to a different thread but also a new topic. For someone who has a small business that has no reason to ever be writing checks is there any benefit to having a business checking account as opposed to some kind of non business high yield savings account?
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mysterious-tomato-10057
10/03/2023, 2:57 PMAre you including the issues of having business money in personal bank accounts?
f
fast-megabyte-10597
10/03/2023, 3:00 PMNo I currently have a business checking account but the interest rate is .000000000000000001 and since I will most likely never have to write a check Iām wondering if I should just move it to a high yield savings account (that will still be a dedicated business account just that it is not officially called a business account) or if there is actually some benefit to having a business checking account that Iām unaware of.
m
mysterious-tomato-10057
10/03/2023, 3:02 PMi mean, would it be an account with the businessās EIN number on it or your personal social? Forget what itās called, there are reasons you want money in a business versus in your personal account for legal reasons that I am wondering if you are asking about
mysterious-tomato-10057
10/03/2023, 3:02 PMI think your best option is to open a BUSINESS HYSA https://www.primealliance.bank/business-savings
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fast-megabyte-10597
10/03/2023, 3:03 PMI guess im asking the same question if I were to have a ābusinessā savings account with my EIN verses a ābusinessā checking account.
fast-megabyte-10597
10/03/2023, 3:04 PMIn other words does the business having a checking account have any other benefits besides the ability to write checks?
m
mysterious-tomato-10057
10/03/2023, 3:04 PMyou certainly can run a business out of a personal bank account, but there are business high yield savings accounts so you donāt need to.
mysterious-tomato-10057
10/03/2023, 3:06 PMyes business banking can have many benefits, from a quick google search:
ā¢ integrated invoice tools
ā¢ ability to upload receipts
ā¢ categorisation of your spending
ā¢ integration with accounting software
ā¢ account upgrades, for when your business grows, for example
ā¢ You can build up your business credit rating
ā¢ Setting up a separate account for your business sooner rather than later can lay the foundations for future growth. It can make it easier to scale up your business, as you wonāt need to worry about switching to a more suitable bank account while your business is experiencing other major changes.
ā¢ Personal accounts might not have the protection of an LLC
ā¢ Another consideration is that if you have a type of business that the IRS may consider to be a hobby, one way you can demonstrate that you are operating as a business is to have business bank accounts.
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fast-megabyte-10597
10/03/2023, 3:07 PMOr alternatively, are there any high yield business checking accounts?
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mysterious-tomato-10057
10/03/2023, 3:07 PMi sent one aboveā¦
mysterious-tomato-10057
10/03/2023, 3:07 PMf
fast-megabyte-10597
10/03/2023, 3:10 PMLet me maybe change the question a bit so that I can clarify what Iām asking. If I have a choice between a business checking account that has an interest rate of 1% and a business savings account with an interest rate of 4% would there be any reason to choose the checking account besides the ability to write checks?
m
mysterious-tomato-10057
10/03/2023, 3:13 PMoh!!! that is a different question definitely. It depends on the bank. If the savings account is fully featured then no i donāt think so. For Chase I need to have a checking account for example because you canāt send zelle or make a credit card payment from a savings account, but all that depends on the bank.
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fast-megabyte-10597
10/03/2023, 3:40 PMIs this primealliance account fully featured?
fast-megabyte-10597
10/03/2023, 3:41 PMOr is there some other requirement that it has that would make someone choose a chase account instead?
fast-megabyte-10597
10/03/2023, 3:43 PMBasically Bank of America business checking is the literal worst š and Iām looking for my best alternative.
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sparse-church-6144
10/03/2023, 4:00 PMI use American express business checking 1.3 apy and a bonus on signup
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fast-megabyte-10597
10/03/2023, 4:05 PMSo thatās actually a perfect example. Why would you choose that Amex checking account for 1.3% instead of the primealliance savings for 3.85%?
m
mysterious-tomato-10057
10/03/2023, 4:19 PMYeah so I don't think prime alliance has all the bells and whistles that something like chase has. So I would use prime alliance for savings and chase for checkings.
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fast-megabyte-10597
10/03/2023, 4:44 PMWhat are some things that itās missing?
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mysterious-tomato-10057
10/03/2023, 4:44 PMI don't have an account with them yet, so I'm not sure. Opening the account is something on my to-do list!
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fast-megabyte-10597
10/03/2023, 4:45 PMI would definitely need zelle and the ability to pay credit cards
m
mysterious-tomato-10057
10/03/2023, 4:45 PMSo that's why I plan to use it as a savings account and keep chase as my checkings.
f
fast-megabyte-10597
10/03/2023, 4:46 PMIs it missing those things?
m
mysterious-tomato-10057
10/03/2023, 4:46 PMI'm not sure but I assume it is since it's a savings account
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fast-megabyte-10597
10/03/2023, 4:57 PMConfirmed they do not have zelle
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fast-megabyte-10597
10/03/2023, 4:58 PMSo I think we may hit on one of the main benefits of having a business checking instead of a business savings account. Unless you know of a HY business savings account that also has zelle.