Introduction
Freelancers and gig workers need to be careful when it comes to their bank accounts. Freelancers often don’t receive traditional paychecks, which makes the ability to make timely payments important: You want a bank account that allows you to pay your bills quickly without incurring fees or penalties for late payments. Additionally, if you’re not paid regularly, having an account with no minimum balance requirement can help keep your finances from getting too messy. Freelancers also have unique needs when it comes to choosing the right checking account; depending on how much money they’re making and how many expenses they have each month, there are several options available that could work well for their individual budgets.
Look for a bank that offers more than one option.
There are some banks that offer more than one option, and they can be a good choice for freelancers. If you are able to choose from multiple types of accounts and services, you will have more flexibility in managing your finances. Here’s how:
Checking Accounts: A checking account is one type of bank account that allows you to write checks and make withdrawals at ATMs or by using debit cards. It’s also where your paycheck deposits go when you work as an employee instead of as a freelancer.
Savings Accounts: Savings accounts allow you to save money within the bank rather than keeping it in cash or other investments like stocks or bonds outside the bank infrastructure.
Certificate of Deposit (CD): CDs are similar to savings accounts because they let users deposit money but earn higher interest rates in return for locking their funds up for a term (usually anywhere from three months to several years).
Consider fees and costs.
The last thing you want to do when you’re just starting out is pay a bunch of fees and costs. As a freelancer, it’s important that your bank account is not holding you back in any way—especially when it comes to finances. Here are some common fees and costs that you’ll want to consider:
- Monthly fees
- Overdraft fees
- ATM fees
- Compare checking accounts.
- Checking accounts are the most common type of bank account and allow you to:
- Deposit checks and pay bills electronically, via mobile banking apps, or with bill pay services like Easy Bill.
- Write checks from your mobile device or computer.
- Use an ATM card to withdraw money from an ATM machine anywhere in the world (as long as you have enough cash in your account).
- Choose a bank that offers special services.
If you’re self-employed, a freelancer or own a small business, your needs are different from those of people who work for large companies. You may want to consider a bank that offers special services just for freelancers.
There are several advantages to this approach:
It’s convenient – Your time is valuable and if there’s an extra step in the process, it could mean missing out on business opportunities. Specialized services make it easier for you to manage your finances without sacrificing convenience or speediness.
They’re focused on your needs – Online banks with specialized products will be more likely to understand what you need from them than larger institutions that don’t offer these types of programs (and probably don’t care). As such, they’ll have better products specifically designed around those demands and requirements—which means less work for you!
Understand the fine print.
Before you sign on the dotted line and start banking with your new company, make sure that you fully understand all of the terms of your contract. This means reading through all of their policies from top to bottom, as well as any small print that might be hiding in there somewhere. If there’s something on there that doesn’t make sense or sounds confusing, ask questions! You’re paying them for their services so it’s reasonable to assume that they’ll want to help guide you through everything and explain things clearly (they are professionals after all). Some companies will even offer free advice over email and phone calls if needed—take advantage of this resource before signing up just because “it seemed like a good deal.” In most cases though, asking questions early in the process will save both parties time and money down the road.
Another thing worth considering is whether or not there’s another bank account provider out there who has better rates than what is currently offered by your current provider? It might sound crazy at first but it could actually save everyone involved some money if they find another account provider with more favorable conditions than what currently exist today
Choose a bank and account that meet your personal needs, especially if you’re a freelancer.
Banks today offer a variety of special services to help freelancers manage their money and make it easier to track expenses. Some examples include:
Online account access, which allows you to check your balance, pay bills and transfer funds between accounts at any time
Mobile app access, which allows you to do the same things as an online account but also has features like automatic bill payment and cash withdrawal capabilities.
ATM network access or fee reimbursement (if available). If you plan on withdrawing large sums of money regularly, having an ATM network in place can lower the cost per transaction significantly. In addition, some banks offer fee reimbursements when using other financial institution ATMs outside of their network (for example: Bank of America reimburses up to $15 per statement cycle for non-Bank of America ATM usage). If this is something that interests you it’s worth looking into before choosing a bank account as it’s not always possible for every customer base
Conclusion
We hope this guide has helped you find the best bank account for freelancers. If not, there are many other options out there that can meet your needs. Keep an open mind when choosing a bank and don’t be afraid to shop around until you find what works best for you!
Disclaimer: Not financial adviser & this is not financial advice.
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