Signed up for a 'free' business checking account last month. Thought I'd finally escaped the fees. Then I actually read the statement. $18 monthly fee because I didn't maintain a $5k average balance. This is my side hustle, not a VC-funded startup. Anyone else get burned by the fine print?
banking
Free business checking isn't necessarily free
Haha yeah, 'free' in banking is like 'unlimited' in cell plans. There's always a catch.
Did you check the fee schedule before signing? Mine has a $15 fee if I go under $2k average, but I keep just enough in there to avoid it. Still annoying though.
Wait until you try to close the account. They'll hit you with a $50 early closure fee if its within 6 months. Ask me how I know.
Ugh, I did see that in the terms. Guess I'm stuck for a while. The fee schedule was 14 pages long—who reads that?
Solution: find a local credit union.They usually have actual free business checking with no minimums. Might not have the fancy app, but who cares.
Credit unions can be hit or miss too. Mine charges $5/month if I dont use my debit card 10 times. I just buy a bunch of bananas in separate transactions now.
I've been with Big Bank for 3 years. The 'free' account costs me $10/month but I write it off as a business expense. Problem solved.
You can write off bank fees? I need to talk to my accountant.
You can, but it's still money out of your pocket. Better to avoid the fee entirely if you can. Have you considered switching to an online bank like Novo or Bluevine? No monthly fees and no minimums.
I looked at Bluevine but they don't have physical branches. I need to deposit cash sometimes. Might just eat the $18 and move on.
Cash deposits are the killer. Most online banks don't take cash. Maybe keep a small account at a big bank jkust for that and do the rest online? Splitting it up is more hassle but saves fees.
Or just use a shoebox. That's what I do. Free and no fees. Just don't tell the IRS.
Shoebox banking is fine until you need a loan or a merchant account. Then you're stuck. I'd rather pay the $10 and have a real banking relationship.