Affordable Business Checking: Up to 925 Euros Savings Potential
Consultation on Various Matters by the Commission:
Channel Instagram LinkedIn Reddit Telegram Email Text Message Print Website
Businesses seeking to cut costs can find considerable savings by switching to less expensive providers for their business checking accounts. The primary cost drivers often lie in the fees for individual booking (transaction) items, as shown in a recent survey by FMH Financial Consulting commissioned by ntv. The study examined 40 banks with 59 different account models, shedding light on the potential 925 euros in annual savings that could be achieved by switching from the most expensive to the cheapest provider among the 40 banks.
The Connection Between Transactions and Costs
This significant disparity arises because unlike personal checking accounts, banks typically charge for each booking transaction separately in business accounts. The result? The more a business conducts through cards, the more booking transactions are generated, escalating the total monthly fees.
Making the Switch: What to Look For
Annual fees for credit cards, Girocard, or debit cards are relatively insignificant for business accounts. Instead, focus on the account management fee and whether higher flat-rate fees allow for as many free transactions per month as possible.
Finding Your Ideal Account
Given the variety in business models and size of operations, requirements differ across businesses. For small-to-medium companies, FMH identified the best accounts for businesses with 80 and 200 account movements per month. The analysis takes into account 20 online transfers, 20 credits, and 40 direct debits per month for the first group, and 50 online transfers, 70 credits, and 80 direct debits for the second group.
Notably, Targobank and Commerzbank have made it to the top group among branch banks for the first segment, with Targobank offering a flat account management fee of 178.80 euros, 30 free monthly transactions, and 15 cents per booking transaction after the 31st—totaling just 288.30 euros per year. Commerzbank comes in at 393.70 euros annually.
region-specific providers
In terms of data protection, five regional banks received the highest ranking of "very good.” These consist of Sparkasse Ansbach, Sparkasse Marburg Biedenkopf, Berliner Volksbank, Saalesparkasse, and the Kreis- und Stadtsparkasse Wasserburg/Inn.
Larger Companies Need Different Terms
In the segment with 200 account movements per month, only Targobank was rated "very good" among the nationwide branch banks, with annual costs amounting to 492.30 euros.
Costs are a Factor, But Not Everything
It’s important to note that not all businesses select their account based on cost alone. Personal support and good relationships are valuable to many local businesses. However, a good cost-benefit ratio doesn't need to be mutually exclusive with personal service. Dissatisfied customers may find inspiration in this evaluation or use the detailed version of the Giro comparison available on ntv.de for savings of 500 to well over 1,000 euros per year.
However, the switch does come with additional expenses, such as printing new letterheads and informing business partners and the tax office of the new account details.
Enrichment Data:
The study reveals that transaction fees, cash deposit fees, monthly maintenance fees, and other fees play a critical role in the overall cost of a business checking account. KeyBank, for instance, has a competitive account with a liberal number of free transactions and a high fee-free deposit cap, offering significant savings over traditional banks. Other digital banks like Grasshopper and Mercury boast reduced fees with added perks, potentially bringing down costs significantly compared to traditional banks.
For Small-to-Medium Companies:
Avoiding $0.50 transaction fees after 100 transactions and monthly fees of $25 can result in savings of 300 euros or more annually. Reducing these costs, along with higher no-fee deposit limits, can translate into savings in the hundreds to thousands of euros per year depending on business size and cash flow patterns.
Source: ntv.de, awi
- Translation
- FB Page Likes
- A/B Testing
- Currencies
- Savings Calculator
- Partnerships
- Small Business
- Regulatory Compliance
- Cybersecurity
- Banking Options
- To minimize expenses related to business checking accounts, it's advisable for companies to evaluate community policies and employment policies that might influence transaction costs, as the number of transactions can significantly impact the total monthly fees.
- When making financial decisions, it's essential for businesses to consider not only their employment policies but also the business-related financial aspects, such as choosing the right bank and account for cost-effective personal-finance management.
