Free business checking among options touted

Depending on the institution, new features may include zero monthly service fees, no minimum balance requirement, free checking activity up to a transaction maximum and overdraft privileges, perhaps the newest offering of the bunch.

“Typically, small-business owners have the same habits and traits as consumers. I think (a small business checking account) is an extension of a consumer-type relationship,” said Garry Robinson, executive vice president of Liberty Bank. “We just adapted it off of our existing consumer free-checking account.”

Launched at the end of July, Liberty Bank’s small-business account waives monthly service fees and the need to maintain minimum balances. It also provides small businesses overdraft privileges capped at $1,000 as long as the account receives $500 in deposits within 30 days.

However, monthly activity is limited to 150 transactions and limited liability companies and sole proprietors are excluded from Liberty’s free small-business checking, said Sandy Datema, assistant vice president.

Also in July, Mid Missouri Bank began offering checking accounts geared to small businesses with certain overdraft priveleges, said teller Jean Koontz. The program also includes no minimum opening balance, no ongoing balance required, no maintenance fee, free debit and small-business credit cards with no annual fees, as well as free basic online banking and online bill paying.

While banks are making it easier for small businesses to overdraw their accounts, restrictions do apply. Depending on the bank, the amount clients can overdraw is dependent upon their existing balances and credit history.

But tailoring checking accounts to small businesses is not new in the Springfield area.

Prompted by customer queries regarding account charges, Great Southern Bank retooled its small-business checking accounts in October 2001, said Doug Marrs, vice president of operations.

Existing small-business clients wondered why their accounts had such steep costs when usage was on par with their individual accounts, Marrs said. Expenses like Internet banking fees of $100 a month and monthly maintenance costs of $10 to $50 were “aggressive service charges for those type of accounts,” he added.

The rationale behind Commerce Bank revising its small business checking services this spring was twofold, according to John Cox, retail administration manager. As a competitive issue it made sense, since small businesses have limited account activity and checking services are a manageable cost environment, Cox said.

In contrast to Commerce’s previous light-volume business checking account, which required a minimum balance of $3,500 or a service fee was incurred, its newest product requires no minimum balance, said Karen Yates, financial services representative.

Other features of Commerce’s small business account are free business check cards, 50 free transactions, free online account access and free coin and currency services, Cox said.