It appears as if 5/3 no longer wants our banking business and are closing our business accounts. Can anyone suggest a good bank for business purposes?
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Our company uses Signature Bank in Sylvania. They've been great. We've used them for 6-7 years with no problems.
Signature Bank - hands down. Don't bother to look any further. Hands on, individual client service - second to none.
Why on earth would 5/3 just shut down business accounts?
My dad used Genoa Bank for years when he had his building business.
"Why on earth would 5/3 just shut down business accounts?"
More to the story methinks..........
Not necessarily Foodie. 5/3 has a habit of doing this, especially if the business deals in a lot of cash. They don't want to handle cash. It sits in the vault not making any interest money. It costs the bank to have CSR's handle it. It is a theft and security risk. The Federal government, under the Patriot Act, has onerous and stringent record keeping and reporting procedures of all cash transactions. Anything over $3,000 must be recorded. Thus banks have extra "back office" compliance departments which are also a cost center.
If pnjprr's business has cash transactions, no matter how legitimate, banks don't want them as customers unless there are other off setting banking profits generated by that customer. Big chains are treated a little better by banks, but an independant can have a hard time finding and/or keeping a bank if cash is involved.
Banks are increasingly forcing customers to move money electronically. If they had their way there would be no cash transactions at all.
We are a cash business which is why I believe they are closing our accounts. We make larger deposits, but withdrawal cash about 3 - 4 times a week. I tend to agree with holland's comments. We are totally a legitimate business, just small and getting started. It's discouraging to have this happen so suddenly.
I'm going to contact you through your micro blog on here.
5/3, PNC & Huntington have all undergone changes in their business practices. I have found First Federal & Waterford Bank to be small business friendly
I agree with holland on this. We deal through two different banks. Huntington starts charging transaction fees after cash deposits go over $5,000/month, which is ridiculous if you run a cash business. Also, they charge $1/transaction after 100 transactions/month, which is also ridiculous if you're running any kind of a viable business. Keybank allows 50 transactions/month and charges 50 cents per transaction after that. But they don't have any limit on amount of cash deposited.
The solution is to open multiple accounts and count every transaction to ensure you don't cross the allowable number per month. Banks just don't want your business anymore. They can borrow from the Fed cheaper than they can from you or from your deposits. Banks are doing everything they can to maximize fees.
I have had to contact the Federal Reserve in Cleveland on more than one occaision to report a problem with a bank not meeting regulatory standards. They can be helpful. After you get your immediate problem resolved, contact the FED and make a formal complaint. ( In writing, dispassionately, to the correct department yada, yada, yada.) Once, they actually ordered a bank to reverse an action they took.
Just because you have a cash business is not a sufficient reason to close a DDA account. Make them explain it to the FED.
455 East 6th Street
Cleveland, OH 44114
We've dealt with both 5th 3rd and Signature on and off over the years. Originally with Capital Bank which is how we ended up with 5th 3rd. Currently with Signature (VERY similar to Capital Bank) and couldn't be more pleased. 5th 3rd did indeed want us making deposits electronically. In fact, I scanned the checks at my desk and transmitted the deposit to them. Dealing with cash with 5/3 was always a problem - necessitating a trip to the bank which I always try to avoid - personally and professionally. Signature maintains the courier service which is very convenient.
So, I'd have to agree with your assessment holland. My apologies to pnjperr - I meant nothing untoward - but know how crazy banking has become.
Just wanted to make sure that my microblog message went through to you OK. I don't use that feature very often. If not, please let me know and I can post some contact information on here for you. I work at Signature and would be more than happy to meet/talk with you :)
I use key for all of my business ventures. They work well for me other then their much bigger in Ohio and not as big in Michigan where I do business as well.
Don't want to hijack this thread, but on a related topic, can anyone suggest a really good credit card processor to go through? I have tried three different ones over the years and they all want to rape you on the discount rate and incidental fees. I am looking at switching to Flagship Merchant Services right now.
Call Tamra from Heartland....her cell is 419-283-2212. Shes got some of the biggest accounts in town. CAll her tell her your volume and see what she can do for you.