Picking a Biznik-frendly Bank

I look for all that, and especially the personal, human to human touch.

I was amazed and very pleased to find out that Edward Jones is a full service bank and that I can do everything that I need to do, with a human to help, AND earn a decent rate on my "Checking" account, which is a money market account.

md

ooo i like that idea. i dont think i earn interest on my biz checking account with WF right now.

what about local credit unions - anyone have good stories about them and which in particular?

I second the vote for credit unions.

The whole point of credit unions is that you're a part owner, so they're in it to make money for you, not the executives or the shareholders.

I love my credit union. They've got great rates, no fees, great online access, and great service. YMMV, but in general they're a much better deal than banks.

well whatever you pick be sure to read the fine print on the fees and how/when they charge them.

my current bank is US Bank. can't say that i am thrilled with the way they hold up my deposits..somehow the debits seems to like to go through first..also i am currently confused about how they operate off of Central Standard time.. Ever had one of those instances where you looked at your online statement and said OMG better run down to the bank and make a deposit..well the problem i have had is they do their debits on Standard time and our local branches for US Bank have hours based on Pacific time. The net effect? Overdraft fees! those things really suck!

I think credit unions are a good bet. A good friend of mine is the manager at WAMU. and she seems to take care of the small business owner as well.

For those lucky enough to live in a city like SF where there's a branch, I can't stress how awesome First Republic is. A visit to First Republic is sitting at a desk, in a comfortable chair and working with a banking professional who knows your name and your banking situation. It's not a $5 fee to stand in line for 30 minutes to speak to an unfriendly teller.

I have been really happy with Group Health Credit Union. Convenient location, plus they have shared branches so that you can use other credit unions if you're traveling or just not near your usual branch. Plus they offer easy online banking and transfers.

I'll chime in on WAMU business. I have used them for years and haven't had any issues thus far. No fees, local branches if I need it, online banking and it syncs with my Quickbooks Online with ease.

My only annoyance with them is that they keep sending me paper statements after requesting a halt 4 times. I suppose they just like wasting money and killing trees. It's the Corporate way, don't you know? ;)

I use Key Bank and my banker's name is David Olee and his number is(206) 585-9302 I can call David anytime I have questions or problems. He always calls me back when I can't speak with him right away. He also calls me when he sees that a check might bounce or if their seems to be some kind of problem with my account. Service is the key and that's about who you are doing business with and not always the institution. David almost always waives or reimburses my account for those extra fees that come along. I can't abuse his kindness is the only thing. Art T.

I use WAMU for all my businesses. Buuuutttt, we may go international this year, so will be looking for another institution to work with... Any suggestions?

Believe it or not I bank of Bank of America and although I don't always like their services, their business services have exceeded my expectations by far! Little fees, they hardly hold any checks and they are all about making sure you know the easiest way to operate your business accounts.

I just learned about ShoreBank. There was a write-up on them in the A Fresh Squeeze newsletter.

Anyone using ShoreBank?

My two cents… You should look for a High Touch/High Tech commercial bank. Unfortunately, large bank retailers more and more are lacking of this “human” approach and this is where local community small-business-oriented banks are filling the gap.

As a small business owner you should know what to expect from your bank, so you won’t get disappointed. For example, if you would like not pushy, little fees, educational and personal approach, in other words, that they care about you, it will be difficult to get it from a large bank. Why? 1) High turn-over (chances are you won’t get an experienced banker), 2) Business model focuses in collecting fees from those customers looking for free-banking-products, hoping that down the road they will get overdrawn, go below their minimum balance, or use ATMs outside of the network. Not to mention that they will push you to open a new product every time you go to the bank -like overdraft protection using a credit card- because more products you have more customer retention for the bank. But don’t get me wrong, the retail model is a natural path for large banks -like any other industry- looking to maximize profits from economies of scale, and it has benefits for customers that know what they need, do most of their banking online including loan applications, and basically are low maintenance customers. Large banks strive to be good order takers.

So, is there any hope for a biznik like John Allen? The answer is yes, and most likely he will get what he would like from a local community bank. Why? 1) Most of the local banks where created to target the niche of those unsatisfied customers, 2) You will find more experienced bankers (the ones that left the large banks), 3) Local banks focus to build business relationships with their customers rather than transactions, 4) Local banks offer industry-expected features like online banking services, free ATMs network, etc. Now, how local commercial banks make their money? Where is the catch? It’s simple, the business model follows what a traditional bank used to be, it gathers deposits from customers, get to know them, listen to them, offers sound advice, keeping them happy, so the bank can make the overall deposits available to lend small business owners looking for financing, and the profit comes out from the loan fees and interest.

Moreover, local banks have an advantage over credit unions for being small business oriented rather than consumer oriented. You want to save in an auto loan? go to a credit union… you want to save buying a commercial property or having a business line of credit? go to your local commercial bank. Also, local banks contribute to the local economy paying taxes and credit unions don’t. The choice is yours.

I have been in the banking industry for over 6 years; I worked for a large bank managing several branches and now I work for a local commercial bank in downtown Portland, Oregon, helping customers like biznik John Allen move forward with their business.

Please feel free to ask any questions. I’ll be happy to answer them. This is banking that doesn’t suck. Email:mcuevas@mbankonline.com.

I have used US Bank for quite a while because they seemed better prepared for the small business owner than when I checked out B of A.

Lots of branches is a critical issue for me. I don't use a credit union because they are usually found in fewer locations.

Every time I set up a client's chart of accounts or financial records or train them in QuickBooks, I get asked this question. I think a lot of small business owners experiences depend on the local branch and who is running it as well the nature of their business and what they need.

Credit unions usually won't work because they usually won't support downloading your statements directly into the QuickBooks software program. One workaround is to use Quicken for Home and Business (PC only.)

One thing to keep in mind about using credit unions is that sometimes you can make deposits and withdrawals at neighboring credit unions which effectively increases your branches and some will refund any ATM fees.

If you want to go this route, ask your credit union if you can download your statements directly into your bookkeeping software. This has been a problem with QuickBooks for Mac.

As for banks, I use First Mutual Bank and have been happy with them (they know me by name and ask how the business is doing) but they did neglect to inform me that a check had come in early and I had to pay an overdraft fee. WaMu allows you one overdraft a year.

Other clients have spoken favorably of Bank of America (can download 13 months of statements), US Bank (recently requested a check from five years ago to do my taxes and they have asked for my business), WaMu (very small business oriented [Note: Kerry Killinger was a client of a company I worked for so I may be prejudiced]), and Evergreen Bank (able to download 18 months worth.)

Banks I do not recommend are Key (have to pay extra to be able to download into QuickBooks) and Wells Fargo (heard too many complaints.)

If you have employees, you might want to make sure that your employees can cash their payroll checks free of charge (currently, there is a class action lawsuit on this UCC issue.)

On a personal note, I recently opened up a personal account to store some extra money at Verity Credit Union in the Puget Sound area that pays 6.01% on balances up to $40,000 provided you use their debit card 12 times a month, receive e-statements, and access online banking once a month. You can't do this for a "business" account.

I have been using Wells Fargo Bank here in the US due to being able to make Online viewing of my business account. I can see what is in on hold and everything that is going in and out of my account. I also have my merchant account through them for only 5.00 a month I now can accept any major credit cards which they set up for me and all I do is call it in on the phone for verification. In additon to my website that allows for full payments to be made credit cards, echecks and paypal. Although taking paypal is not my preferred choice due to the fees they take.

What varied experiences people have had. This is a great topic.

We love our Qualstar Credit Union personal account but, unfortunately, they do not do business accounts.

We are are not happy with Key Bank and are considering moving our business account to Frontier Bank, a small Pacific Northwest Bank with a branch in Renton, where our main office is. They truly have the "personal touch." (The president of the bank took my husband out to lunch to explain their services!) A "home-town" type bank is just a better fit for us. And we would like to support a bank that contributes so much to the community in one of our major markets.

HomeStreet Bank.

Local, friendly, good people, good programs for small biz folks. When I set up my free checking they actually encouraged me to use a personal account rather than business account to avoid fee's!

Branches seem to all be open til 6. Every branch I have ever been to has the friendliest most helpful folks ever. I have never been "sold to" by any of them, just treated like one of the family.

Excellent online banking services, as well as online statements if you like (no fees for any of this!). And of course all those bill payer options some people really like.

Lots of savings options with decent rates.

They aren't on every street corner, but they do have an arrangement with Key Bank so we can use their ATM's w/ no fee's.

Check them out! http://www.homestreetbank.com

And, if you say I referred you, we both get a free gift ;-)

• Michelle

I was told by one of the representatives at a major US bank (ahem!) to forget about them and go with a small bank.

To be honest, I regret going with the small bank. Their hours are horrible, their online banking is pathetic (they should pay ME to use it), and their service is so-so.

There's a point of being too small.

LOL Shea!

I went with Bank of America and made about $75 for signing up.

They always have promos $70 - $100 for opening up a business account.

-Andrey

I went to Bank of America since I already have my personal account there. As long as I keep a minimum of $3,000 in my business checking account, I have no fees. Negatives: No free checks (but I don't use many anyway) and no interest (so I try to only keep about the minimum in the account). Since I do my personal banking there, too, I am easily able to transfer money from the business account to the personal account.

Just a thought and it may not fit for everyone but I chose Sterling Savings Bank after being with Key Bank for a number of years. They offer great personalized service, know me by name when I come in and on Friday, they have fresh chocolate chip cookies! Seriously though they are one of the few banks in WA that can handle the funding for Health Savings Accounts and for depositors, there are no fees. May be worth checking out if you are of a mind to go with a high deductible health plan and want a brick and morter place to deposit your savings portion.

Not sure where all their branches are, but here in the south end Rainier Pacific has great business checking. Free checks, no fees, $500 minimum balance. Really cheap all the way around. I know some other local banks wanted .10 cents for every check written OR deposited. Yikes! Hope this helps.

John,

The best thing the bank can do is help you develop your business. They all offer the same basic information and services.

One thing I really look for is will they cover a check if my balance is too low and/or call me. Then when suppliers call for credit checks they will say no checks were bounced and you don't create issues with vendors (Going COD)

Most Community banks will do this for you.