4 steps to comparing business bank accounts

posted by 10 months ago in Tips
4 steps to comparing business bank accounts

Whether you’re a sole trader, a limited company or a partnership you must have a bank account separate to your personal account. With so many banks and alternatives offering the best rates and fee free periods how can you possibly choose one?!

Simple, compare the market and find the right business bank account for you and your business!

But first of all, what do you need to look out for?

Fee-free business banking

One of the key things to look out for when searching for the right business bank account is the length of the fee-free banking period. Many high-street banks can offer anything from 12 months to 2 years for start-up businesses. If your business is already established the fee-free period tends to be less substantial.

Account charges

As you will be aware, with a business account comes a higher volume of transactions and with those transactions comes charges. These charges will cover things such as;

  • Standing orders
  • Deposits
  • Overdrafts

What to look out for

You may think going for the account that offers the longest fee free banking period is the obvious one to go for but, the key thing to look out for is what happens when that period ends. Often those who offer the longest fee-free banking period tend to charge more once it’s over.

Interest

You will need to find out what interest rates are available in the market for when your account is open and in credit. This may sound off-putting but interest rates have generally been found to be low. Although, some of the major banks will require interest on current accounts.

Incentives

Especially if you’re a start-up, incentives and extras are more than likely going to be offered when signing up to a business bank account. The extras will usually be educational, things like information packs, apps, online banking, accounting tips/services and reductions on essentials like insurance!

Whether you’re a start-up looking to open a business bank account or an established business looking to switch, Businesscomparison.com offers a comparison service with filters available to ensure you get the right bank account for your business.