5 Best Banks For Your Side Hustle From Home
Starting your side hustle from home is exciting. Here are tips to help you choose the best bank for online business.
Ease of Use
Every bank has benefits and drawbacks. Make sure your bank is easy to use and understand. Those without simple options or processes outlined on their website will be time-consuming and frustrating. Especially when you need help with day-to-day tasks like setting up a merchant account. That will only distract you from growing your successful side hustle from home. Find a bank that makes it easy the extra service will pay off in efficiency and growth down the road.
Customer Service
Don’t underestimate customer service. If you’re serious about making your side hustle from home a success. Chances are you’ll have lots of questions. Learning how to start online business from home can be challenging.
Online business banks offer various kinds of services to help you get set up and guide you in your online business ideas. They will also be able to help with opening an online business bank account, which is an essential step in starting your own online business. Check customer reviews to get insights into how well these services are working.
Checking Accounts
It’s important to think about how your side hustle from home will be paid. Will you be depositing checks? If so, how often? How much will they be for on average? How frequently will funds need to move in and out of your account at minimum levels? You may also want an option with a low monthly fee (or no fee at all) so that funds can flow freely without eating into your profits.
Savings Accounts
Most people think of a savings account as an account that offers little interest, but that’s not always true. Online banks offer better rates than traditional banks, and have higher limits. If you have a side hustle job from home and make $500 or more per month that you don’t plan on needing; consider opening a business savings account at one of these institutions. When you need money from your savings account to fund your side hustle from home, take out what you need. Keep your balance intact as much as possible; pay off expenses with funds from your checking accounts.
Credit Cards
Some people start their side hustle from home with a credit card. This is often a bad idea. Unless you have a large line of credit, it can be difficult to get approved. If you do use a credit card to start your online business, make sure it has zero-percent interest in case you carry a balance. Look for perks like points and other cash back rewards that can help offset expenses associated with your online business. If you plan on using a credit card long term, make sure it doesn’t come with an annual fee. Paying money each year takes away from profits.
Beware of Paid Reviews
I spent hours reading 4 and 5 star ratings on the same banks from so called (trusted) sites.
1. Axos
2. BankProv
4. Mercury
5. GetNorthOne
6. Novo
The sites all receive affiliate commissions from the banks they review. I found it odd there were no negative reviews.
Then I found Trustpilot and Depositaccounts, two sites with actual customer reviews. There, I discovered a lot of negative reviews on the same highly rated banks.
How much if any personal banking experience did the paid writers have with the banks they rated?
Customer Recommendations
Below are four banks and one credit union that received high praise from actual customers. Entrepreneurs with a side hustle from home.
To learn more about these banks visit the Resources section, or blog post “Things I Need To Start An Online Business“. Security standards are at PCI Security Standards.
1. LendingClub
2. Bluevine
3. Lili
5. Navy Federal Credit Union *
Bank Vs Credit Union
Which financial institution is best for your side hustle from home? It’s important to know the differences between a bank and a credit union. Both financial institutions offer similar services. Each offer distinct advantages to their members.
Banks are for-profit institutions, while credit unions are non-for-profit organizations. What does this mean? A bank’s primary goal is to maximize profit and issue dividends to its stockholders. Credit unions are non-profit. They put their profits back into their members. They often have lower fees, better interest rates, and more local ATMs, etc.
Now let’s discuss the benefits of credit unions for online business. Local and community-based credit unions offer more personalized customer service. Credit unions members bond through their workplace and hometown.
The primary purpose of a credit union is to meet the needs of its members. Credit unions don’t focus as much on making a profit as banks do. They offer lower fees, better loan interest rates, and higher savings yields.
Your personal preferences will determine whether you prefer to be a member of a credit union or a bank. Consider partnering your side hustle from home with a credit union. It often provides better rates, lower fees, and more personal relationships.
Some people believe being a bank customer is more convenient. National Banks usually have more physical locations. Sometimes they’re better for online business or international banking. This is changing as more credit unions modernize.
Navy Federal Credit Union has a simple, intuitive, online website and mobile application. Beyond that, their custom service is excellent. Navy Federal Credit Union customer service is the best I’ve experienced. Regardless of account type or deposit amounts.