Business Checking Account Analysis
Q. What is Account Analysis?
A. Account Analysis is the overall review of your banking relationship with KS StateBank. By using the analysis structure, we are able to evaluate your entire relationship with us, including all balances held, to help offset any fees you might incur. As a business owner, you might hold more than one account with the Bank or maybe multiple entities. We value you as our client, therefore by tying all of your accounts together in a "relationship model" we’re able to consider your full range of banking services and balances to make your money work for you.
Q. Which business account is right for me – Small Business Checking or Enhanced Business Checking?
A. The account that is best for you depends on the amount of transactions you have each month. Both accounts are designed to benefit you, the business client, depending on your transaction activity and average balances.
If you are a small to mid-sized business with moderate activity, you’re best suited for our Small Business Checking account. This account will help you keep fees low with 20 free debits and 30 free deposits. The $3 monthly service charge can also be waived with a $500 minimum balance held in the account.
If you have higher transaction volumes, for example more than 50 debits or 50 deposited items per month, Enhanced Business Checking is a good fit for you. Combined with average collected balances of $50,000 or higher, you will benefit from the earnings credit offered in the Enhanced Business Checking account regardless of the number of transactions each month.
We use our Estimation Sheet tool to help us decide what account is best for you. Our Retail team can help estimate what fees you can expect with a simulation of our account balances and anticipated activity.
Q. If my business account balances and transactions fluctuate, which account is better for me?
A. If you are on the fence as to what your monthly activity will look like, you might want to start out in the Small Business Checking account. After a few months, we can take a look at your activity and help you decide if Enhanced Business Checking is a better fit. Just come in or give us a call to prepare another analysis for you. And don’t worry – your account number will not change if you need to make adjustments!
Q. As a new or startup business, which account do you recommend?
A. If you are uncertain of your account activity as you begin or grow your business, you might consider Small Business Checking. Once your activity increases and your balances grow, we can easily switch your account to Enhanced Business Checking. Your account number will not change if you need to make the change to the account type – just let us know when you’re ready to switch.
Q. What is an earnings credit rate and how is that set?
A. An earnings credit is a rate earned on the balances of an Enhanced Business Checking account that affords you a reduction (possibly elimination) of fees charged to the account. The monthly earnings credit rate is set and managed by the bank.
Q. Does the earnings credit rate change?
A. The earnings credit rate (and fees) are subject to change at the Bank’s discretion, based on market fluctuations.
Q. What charges can be offset by the earnings credit?
A. Soft charged fees can be reduced or offset by our tiered earnings credit. For a list of charges that are soft charged, please see the schedule of fees for Enhanced Business Checking.
Q. What does "soft charge" fee mean?
A. Soft charged fees means that the fees for those items are calculated throughout the month and then analyzed at the end of the statement cycle. These fees can be offset by the earnings credit. Soft charged fees are assessed the 15th of the month following the end of the statement cycle (or the following business day if the 15th falls on a federal holiday or weekend).
Q. What happens if I have a positive earnings credit? Do I get paid interest?
A. A positive earnings credit rate does not accumulate from month to month; it only applies to fees occurred during the current statement cycle. If the entire earnings credit is not used, the excess is not carried over or paid out.
Q. What is a negative earnings credit rate?
A. The negative earnings credit is a fee that is applied to uncollected balances that fall below $0.00 in the Enhanced Business Checking account type. If the Average Collected Balance of the account falls below $0.00, a soft charge is assessed to the account. This fee is tied to the Prime Rate for negative balances.
Q. What is a Reserve Assessment?
A. The Reserve Assessment is a portion of your account balance that we deduct from your overall balance before calculating the earnings credit. The reserve adjustment is a standard practice for financial institutions when analyzing business accounts and relationships. The full balance of your account is still accessible to you at any time, the reserve is simply part of our earnings credit calculation.
Q. When do account statements cycle for the Small Business Checking and Enhanced Business Checking accounts?
A. Standard account statements cycle at the end of each month for both accounts. Based on your enrollment, you will receive a paper statement or an E-Statement which can be found in Business Online Banking.
Q. My account(s) are part of Enhanced Account Analysis. Will I still get statements at the end of each month?
A. Standard account statements are available at the end of each month. A relationship statement is also produced if one or more accounts are tied to an Enhanced Account Analysis account. Those statements – called Analysis Statements – are generated and sent electronically on or before the 10th of each month following the statement cycle. They are separate from the standard statement that includes copies of checks written. Both Analysis Statements and the standard account statements are found under the E-Statements tab in Online Banking.
Q. How will I receive my Analysis Statement?
A. Enhanced Business Checking accounts receive both a standard account statement and an Analysis Statement for the account. The typical, standard account statement is what all businesses receive. However, the Analysis Statement can include a snapshot of the full relationship, which might include more than one account. This statement is only available through E-Statements and is delivered by the 10th of each month following the statement cycle.
Q. Why am I receiving a separate Analysis Statement?
A. The Analysis Statement will include all the accounts within the relationship. This statement will include products that you have along with any fees that are associated with those services. By combining the accounts together, we’ll be able to use any excess balances in one account to help offset fees in another account. This statement will show what fees are assessed or what fees are offset by the relationship.
Q. Can the Analysis Statement be mailed to me?
A. Unfortunately not, our Analysis Statements are available to clients electronically regardless of whether you opt for paper account statements or electronic. The Analysis Statement is available to you through the E-Statements tab in Online Banking.
Q. Where can I find the Enhanced Business Checking rates?
A. Analysis rates are not published on the rate sheet. We can use the Estimation Sheet to assess whether or not fees will be charged.
Q. I am an existing client, will my account type change?
A. As of April 2020 we will begin to evaluate existing relationships and make a recommendation on the best account type for you. Depending on several factors, your account may be transitioned to Small Business Checking or Enhanced Business Checking, but we’ll notify you before making any changes.
If you are an existing business client and interested in opening a new account for your company – or a new entity – the new account will be opened in the new account type.
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