Certainly, having a local bank is beneficial for small businesses, especially when a relationship with your local loan officer is important to solicit capital necessary for expansion. In addition, traditionally, making deposits is more convenient locally. However, with the majority of consumers using debit cards, and skipping the use of checks or cash, online banking simply makes sense. (And if you do not accept debit cards in your business, we strongly suggest you start doing so, to remain competitive. Please check out my Toolbox, for an easy solution from Square.)
We started testing the waters of online banking back in 2005, and before Capital One 360 bought out one of the pioneers in online banking, ING Direct. And it continues to be the best online bank we have have come across. Capital One 360 consistently pays higher interest than our local banking institutions, and they have grown to include a number of services, such as mortgages, auto loans, kids accounts, investment banking and more. Its web interface and apps are easy to use, allowing for quick transfers within Capital One 360 accounts, as well as with all our external accounts.
Capital One 360 strongly encourages savings, so they make it easy to setup separate saving accounts for different saving goals. We created individual savings accounts in seconds, to save for a vacation, a new car, and college loans. Transferring funds between them was also easy. They make automated direct deposits easy, by enabling you to connect three of your traditional banks…or even a direct deposit from a paycheck, if you are one of the many small business owner + employee, like me.
A few months ago, I tested the mobile deposit feature, as I needed to quickly transfer a paper check to my mortgage company for a payment due. I was amazed by the simplicity! I simply endorsed the check, took a picture of the front and back of the check and uploaded it to Capital One 360. Within 24 hours, the deposit was posted, and I never had to leave the house. 😀
In addition, while traveling oversees, we were thrilled to learn that by using our Capital One 360 debit card, we were not charged any foreign transaction fees…which saved lots of money!
Of course, a debit card is automatically included when you open an account at Capital One 360. And for those of you that still use paper checks on occasion, they also offer the ability to order those at only $5 for two books of checks. Otherwise, there are no monthly fees or charges for your Capital One 360 checking or savings accounts.
Until next issue…Best wishes in your endeavors!