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Start for freeNavigating the Banking Landscape for Entrepreneurs in the USA
Choosing the right bank is crucial for entrepreneurs, especially when managing finances across different states and possibly from abroad. With nearly 5,000 banks operating in the United States as of December 2022, options are plentiful but not all are suited to every business need.
Understanding Bank Ratings from an Entrepreneurial Perspective
The video presents a unique ranking system for evaluating banks, categorized as 'awesome', 'good', 'meh', 'poor', and 'yikes'. This system reflects personal experiences with these institutions, emphasizing that while one branch might underperform, others could excel. Here’s a breakdown of some notable mentions:
Small Local Banks
- Rating: Poor
- Reason: Challenges include stringent requirements like needing an LLC registered in the state or solid proof of address. Their technology platforms often lag behind larger banks, making user experience subpar.
Bank of America (BoA)
- Rating: Poor
- Issues: BoA has faced legal challenges and hefty fines due to overcharging fees. Despite its vast network, customer service experiences have varied greatly, with some accounts being closed without clear communication.
Citibank
- Rating: Good
- Strengths: Citibank offers robust international wire capabilities and accepts foreign proof of address for account openings. However, their online system can be confusing with multiple logins required for different transaction sizes.
Top Picks for Online Banking Solutions
Online banks have revolutionized how entrepreneurs manage their finances by offering flexibility and reducing the need to visit physical branches.
HighBeam Bank
- Rating: Awesome
- Advantages: Offers 5% interest on certain deposits and free transactions like wire transfers. The platform is user-friendly once set up.
Mercury Bank
- Rating: Awesome
- Highlights: Known for its excellent tools and interfaces, Mercury allows significant transaction volumes ideal for large e-commerce businesses without relying on traditional banking systems.
Relay Financial
- Rating: Awesome
- Perks: Provides free banking services with options for premium features. It's particularly noted for its efficiency in handling multiple accounts and debit cards under one roof. The video also touches on other financial institutions like PNC Bank which received a 'yikes' rating due to high fees and poor customer service; TD Bank which was described as 'meh' due to difficulties in account opening; and Truist which was downgraded to 'poor' after closing numerous accounts unexpectedly last December. The guide concludes by stressing the importance of having multiple banking options as an entrepreneur to ensure smooth financial operations. It encourages viewers to explore various banks based on their specific business needs while keeping an eye out for hidden fees or potential service issues that could impact their business negatively.
Article created from: https://youtu.be/e3hdbNmOoXk?feature=shared
