When you’re ready to get your startup off the ground, finding the right bank to fit your needs is an important first step. Choosing a bank is important because they’ll be with you for years down the line, and as your startup grows you’ll need a banking group with the expertise to help you succeed. When it comes to finding the right bank for your startup though, not all banks are created equal. Some banks have better packages and management plans for startups, and it’s a good idea to bank with one of these companies instead of just choosing the bank down the street. In this article we’ll look at which banks are the best for startups, and what kind of services they can offer to you.
1. Silicon Valley Bank
It makes sense that a bank with Silicon Valley in the name would be a great fit for any entrepreneur in the beginning stages of running a startup. What’s great about Silicon Valley Bank, or SVB, is that they actually have a team dedicated to working with startups. In fact, they even advertise their startup tailored services on their website.
Some of the services they offer to startups include waived fees for the first twelve months, a reliable online banking experience, and as an added bonus, they also throw regular networking events. These events are free and they’re a great way to meet new people in the startup world. All of this adds up to make SVB the number one choice on our list. They have a great team of individuals dedicated to helping startups succeed, and they offer an impressive list of services to the people and businesses who bank with them.
2. Square 1 Bank
Square 1 bank is another great option for entrepreneurs who are currently in the early stages of a startup. Square 1 is geared towards providing banking services to startups, and they will be easier to work with, and have a greater understanding of how the venture capital process works than a traditional bank. Like SVB, Square 1 offers waived account fees and a dedicated team of bankers who work solely with startups. That means you’ll be in good hands, and will receive the best advice when it comes to your unique banking needs. To learn more about their unique services you can visit their website, or stop into one of their branches located conveniently in Austin, Boston, DC, Denver, Durham, New York, San Diego, Santa Monica, Seattle, and Silicon Valley.
3. HSBC Bank
One of the attractive features that makes HSBC a good choice for startups is the sheer scale of their operation. HSBC is a global bank, with offices everywhere from Singapore to London to New York. If you plan on selling your product internationally that can make it easier to work with customers and vendors outside of the United States. On top of that, HSBC also has a host of useful features for entrepreneurs who choose to open a business account with them. These include no minimum balance, no monthly fees, and a talented team of banking representatives who are always on hand to answer any questions that you might have. While HSBC may not be specifically geared towards startups in the same way that Silicon Valley Bank or Square 1 is, they offer many of the same services and give their customers the international advantage as well.
4. Capital One Bank
The Capital One Small Business Rewards account is perfect for entrepreneurs who are just getting their startup off the ground. Some of the benefits include no minimum balance in the account, an automatic bill pay feature, 1.00% APY for twelve months, and lots of other great services that give you every advantage when you’re just getting started. Capital One is also convenient to work with because they have branches in all major cities across the United States. That means you’ll be able to develop a connection with your local branch manager, which is an important step in developing a personalized banking experience. As a new business owner you never know when you’re going to need a favor from the bank, and having a personal connection with the people who work there is crucial.
5. US Bank
US Bank is similar to HSBC and Capital One in that they don’t have account managers dedicated exclusively to startups. However, what they do offer are great business packages for business owners which can help you to get your startup up and running with lots of support and few fees. US Bank offers three levels of business banking packages. The silver package is a great option for entrepreneurs because, provided that you complete less than 150 transactions a month, the account is free.
They also require no minimum balance, which means you’ll never have to worry about incurring annoying fees when your cash reserve is running low. Some of US Bank’s premium business packages have more features which you may want for your startup. However, the free silver package will still give most entrepreneurs all of the features that they need to help their startup grow.
Managing Your Money
Regardless of which bank you choose to work with, there are several things that you should keep in mind. The first is that you should keep your business and personal expenses separate at all times. Keep two different accounts and be careful about which one you draw on for your purchases. You can always transfer money between accounts if you need to.
Also, it pays to keep a close eye on your bank statements. Every month you should tally up the statement that the bank gives you and make sure that it matches what you’ve actually charged and deposited. Catching small errors caused by something like teller error can be an easy way to save money and ensure that you always have exactly as much in your account as you think you do. No matter how reliable your bank and how much you trust them, it always pays to be vigilant and careful with your money.