A business bank account is a kind of bank account that offers features and benefits specific to businesses. <\/span>Banks and fintechs offer different kinds of business bank accounts, based on business size and requirements.<\/p>\n The short answer: yes.<\/p>\n All businesses need a separate business bank account for a number of reasons. Here are a few:<\/p>\n By using a separate bank account for business transactions, founders make sure that there is a separation between personal and business liability<\/a>. For example, all business debts should be paid out of the business bank account only – paying debts from your personal account could result in personal financial issues.<\/p>\n Personal savings accounts are simply not built to handle the needs of businesses. Most business bank accounts come with a host of features that help businesses handle their finances better – vendor management<\/a>, payroll<\/a>, corporate credit cards<\/a>, capital<\/a> and so much more.<\/p>\n Before lending to a business, banks and lending institutions conduct thorough checks and risk analyses to ensure that repayment is sound. This creditworthiness check becomes a lot easier if the business has its own bank account where all transactions go through.<\/p>\n Asking customers and vendors to make payments to an official business bank account projects an air of professionalism – in contrast to receiving payments on your personal account.<\/p>\n There are certain legal compliance mechanisms in place to ensure that businesses pay taxes correctly and disclose their accounts. Having a separate bank account only for business transactions makes it much easier to understand inflows and outflows and thus follow these compliances.<\/p>\n The main reason you should opt for a business bank account is the host of features offered. These features make financial management for businesses easier than ever. Here are a few:<\/p>\n What is RazorpayX?<\/a><\/p>\n As a business owner today, you have before you a huge variety of banks and bank accounts to choose from. Here’s a list of the things you must keep in mind before committing to any kind of bank account:<\/p>\n Fees:\u00a0<\/strong>Make sure you check and compare the opening fees across banks and account offerings. Some banks require an annual fee, while some deduct fees quarterly. Some banks might not demand a fee at all!<\/p>\n Read more: A Guide to Current Accounts in India<\/a><\/strong><\/p>\n Minimum Balance Requirement:\u00a0<\/strong>All business bank accounts have a monthly or quarterly minimum balance requirement. For some banks, this MAB can be as low as Rs 1,000 but some higher-end business bank accounts might demand an MAB of as high as Rs 10 lakhs.<\/p>\n Features Offered:\u00a0<\/strong>Business bank accounts offer a variety of different features and benefits for businesses, but these features vary across banks.<\/p>\n The 7 different types of business bank accounts are as follows:<\/span><\/p>\n A regular current account<\/a> is the most versatile and widely used form of business account. It helps in receiving and sending money, managing payroll<\/a>, expenses and other basic financial tasks which keep the business running. It comes with a business debit card and chequebook to manage transactions along with internet banking and mobile banking facilities.<\/span><\/p>\n A merchant account is necessary if a company accepts debit and credit card transactions or e-commerce payments. When a customer pays the business, the money gets deposited into this account and then automatically gets transferred to other business bank accounts after processing.\u00a0<\/span><\/p>\n A money market account is a type of business bank account for companies that wish to maintain regular access to their funds. It is an interest-bearing savings account that offers flexibility by blending some features of both business checking and business saving accounts. For example, it offers cheque-writing capabilities and debit cards for ATM<\/a> withdrawals.\u00a0<\/span><\/p>\n A business can have a credit card account and use the card for emergencies or pay for miscellaneous items of a business. The main benefit of such an account is that it can help businesses improve or maintain their credit score.<\/span><\/p>\n A certificate of deposit account is an alternative to a savings account which can earn a business more interest than the latter. However, a business owner doesn\u2019t get access to the money in this account for a set amount of time, which can range from a few months to several years.\u00a0<\/span><\/p>\n This account is suitable for businesses with excess capital. If an individual takes money out of a CD account before maturity, then they will have to pay a steep penalty charge.<\/span><\/p>\n Professionals use a trust account in a business to keep an account of their unearned incomes. These accounts can hold different assets, including cash, bonds, real estate, stock, mutual funds and other investments.<\/span><\/p>\n A foreign currency account is a business bank account ideal for transactions that involve paying and receiving funds in another currency. It is also known as a multi-currency or borderless account.\u00a0<\/span><\/p>\n This account allows a business to send and receive funds in multiple foreign currencies and can be maintained by an onshore or offshore bank. This money can even earn interest depending on the account.<\/span><\/p>\n The 4 easy steps to open a business bank account are:<\/span><\/p>\n Step 1:<\/b> Choose your preferred bank or financial institution\/platform where you wish to open your business bank account.\u00a0<\/span><\/p>\n Step 2:<\/b> Prepare the documents required to submit<\/a> before opening the account. The documents should provide information on the employer identification number, business owner identification, business details, agreements, etc.\u00a0<\/span><\/p>\n Step 3:<\/b> You may open the account through the financial institution\u2019s online platform or by visiting the branch of your preferred bank. The online process might vary from one bank to another.\u00a0<\/span><\/p>\n Step 4:<\/b> Submit the required documents along with the application form. After the verification process, your online account for business transactions will be set up successfully.\u00a0<\/span><\/p>\n Introducing RazorpayX:<\/p>\nDoes my business need a business bank account?<\/h2>\n
Limiting personal liability<\/strong><\/h4>\n
Better business finance management<\/h4>\n
Creditworthiness<\/h4>\n
Professionalism<\/h4>\n
Regulation and Compliance<\/h4>\n
Features of business bank account<\/h2>\n
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Considerations before opening business bank account<\/h2>\n
What are the types of business bank accounts?<\/b><\/h2>\n
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How to open a business bank account?\u00a0<\/b><\/h2>\n
The business bank account you’ve needed<\/b><\/h2>\n
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