How to choose the best Business Bank account

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:

  • Overdraft
  • Debit cards
  • Online banking
  • A cheque book
  • In branch banking
  • Interest

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?

It’s always worth checking what features each account comes with. Taking out a business account  with the same provider as your current account won’t necessarily be the right option for you.

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
You can often find accounts that offer a free period for switching bank. This free period generally  only lasts for a year or two.  Always check what you could be charged for before opening the account.

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?

The amount of time it’ll take depends whether you need to open an account in branch or online.  If you apply online, your account could be open in a matter of minutes. It often takes a few days to  open an account in branch and you’ll often have to take in a couple of pieces of ID to prove your  identity.

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

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