Top 3 Banks for Small and Medium Businesses

When managing the financial aspects of a small business in India, having a reliable and suitable bank account is essential. A dedicated bank account helps organise transactions and funds and offers various features and benefits catering to business needs.

Today, several banks in India offer current accounts for small businesses, each with its own unique features and advantages. Choosing the right bank account can impact a small business’s financial efficiency and growth. The wrong bank account can expose your small business to higher fees, a lack of features, poor customer service, and inflexibility.

In this article, we will explore some of the best business bank accounts for small and medium-sized businesses in India. So read on.

What services does Business Banking offer?

Business banking accounts are a service provided by a bank to small to large companies. They typically offer a range of services, including:

• Checking accounts
• Savings accounts
• Credit cards
• Loans
• Merchant services
• Online banking
• Mobile banking
• Customer support
• Trade finance
• Foreign exchange
• Wealth management

Top 3 Banks for Small and Medium-sized Businesses

1. ICICI Bank

ICICI Bank is one of India’s largest private banks. With a long history of providing banking services, it is a well-respected banking service. They offer business-friendly policies like a low minimum balance rule and no mobile and online banking transaction fees.

ICICI Bank offers a unique feature called the iBizz mobile application. This allows businesses to access banking services with ease. This includes features like Cash Management System payments and online approvals for Letters of Credit, Bank guarantees, remittances, and bill payments.

Import and export businesses can benefit from ICICI Bank’s One Globe Trade current accounts. They offer a combination of roaming current account services and global trade facilities. These accounts need a quarterly average balance of Rs. 50,000 to Rs. 5 lakhs, with charges ranging from Rs. 1,500 to Rs. 5,000.

However, ICICI Bank charges high fees for international transactions. This can be a significant expense for SME businesses that do much international business.

2. Kotak Mahindra Bank

Kotak Mahindra Bank is one of India’s most respected private banks, founded in 2003. It has a strong track record of providing businesses with reliable, secure banking services. As one of the best business bank accounts, they offer Indian businesses different options, from a startup account to a tailor-made sizeable corporate account.

They also have some business-friendly benefits such as,

• A low minimum balance requirement for current accounts
• A dedicated relationship manager for each business

Kotak Mahindra Bank has a strong focus on technology, and it offers several innovative solutions for businesses, such as:

• The Kotak Circle platform, which allows businesses to merge many current and savings accounts
• The Kotak ActivMoney feature, which sweeps excess funds and provides interest earnings on account balances
• The Kotak TradeOnline platform gives businesses a single window for managing their trade finance needs.

Kotak Mahindra Bank’s domestic fees are similar to other Indian banks, but their fees for foreign transactions can be high, even for small amounts. For example, a wire transfer to the United States costs INR 500 plus a 2% fee of the transaction amount.

3. HDFC bank

HDFC Bank is a private bank in India that offers one of the best business banking accounts to startups, small businesses, and large corporations. The bank has various account options and services, including cash deposits, cheque collection and payments, and debit cards. HDFC Bank also has an easy-to-use app and an online application process.

Some of the Features and Benefits of opting for HDFC are

• You can choose between two types of accounts that cater to your specific needs.
• You can avail of free cash deposits up to 12 times the average monthly balance.
• HDFC Bank provides allied services for startups at exclusive rates.
• You can enjoy the convenience of Cash & Cheque pick-ups and cash deliveries from your location.
• You can obtain a Business debit card without any yearly charges.

HDFC Bank is a good option for businesses seeking a wide range of services, reliable and secure banking, and personalised support. However, businesses should be aware that international fees can be high, and customer service can be slow.

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Conclusion:

Choosing the right bank account for your small business is an important decision. The right account can help you save money, improve your cash flow, and streamline your operations. We have explored some of India’s best business bank accounts for small and medium-sized businesses. Ultimately, the best bank account for your business will depend on your specific needs and requirements. But if you want to save while receiving international business, Winvesta can help you.

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