Business bank accounts
What are business bank accounts?
Many high street banks offer competitive current accounts. It is important at the start to keep your businesses and personal finances separate.
Who needs one?
You must open a business bank account if you’ve started a limited company or partnership. It is not required for sole traders. Most startups prefer to setup a different account to keep their finances separate.
What features do they include?
Most business current accounts come with the same features as a personal one. Features they often include are:
- Debit cards
- Online banking
- A cheque book
- In branch banking
Accounts also include benefits for processing your employees’ salaries and foreign currencies. As well as receiving payments and running credit checks.
How to choose?
How do you choose one?
Use an online comparison tool to check the features that they come with and how much they cost.
How much do they cost?
Business accounts can charge you either a monthly or annual fee. Always take this into account when opening one. Even if you’ll earn interest, work out if you’ll pay more in fees than you’d get back. Watch out for accounts charging you for:
- Using your overdraft
- Withdrawing money
- Paying in
- Writing cheques
- Making bank transfers
Always check what you could be charged for before opening the account.
Opening a bank account?
How long does it take to open an account?
Can you get any account?
Accounts are sometimes only available to certain types of businesses. This depends on size, turnover and the type of company it is.
You need to consider all the above before applying to get a business bank account. Make sure you aren’t going to be paying extensive fees for little return. Check the Terms and Conditions to see any additional charge you for.
Every account will be different so it’s important to shop around and compare all of these factors before choosing one.
Last updated: 24 March 2017