Whether you are starting a business from scratch or you are updating your existing business’ finances, you need to find a business bank account that works for you. There are a lot of business bank accounts to choose from in the UK, and they all offer something slightly different. Here are four things you should think about before choosing the right bank account for you.
Though a lot of personal bank accounts are available without a fee, this isn’t always the case for business bank accounts. To make sure that you are choosing the best bank account for your business, you need to compare the fees, and get a rough idea of how much the bank account will cost you over the course of a year. If you choose the wrong one, you could end up paying more than you need to, and this will eat into your profits. This means comparing monthly maintenance fees, transaction fees and ATM fees.
A lot of people make the mistake of assuming that all banks offer similar interest rates, but this is not always the case. Though the percentages might look similar, even a small difference can make a big impact over the course of many years. It’s important to compare interest rates across banks, as you could be missing out on a much lower rate, which can save you a lot of money in the long run. You should also beware of introductory offers, as these tend to become less competitive over time, and you could end up with a higher rate for the foreseeable future.
Not all banks offer the same features, and this needs to be taken into consideration when you are looking for the best business bank account in the UK. Take the time to consider which banking features you value and need the most, and ensure you are choosing a bank that offers them. Things such as online banking, mobile banking, paper cheques and overdraft protection can all make a big difference.
Don’t underestimate the importance of customer service, especially when you are relying on your business bank account for seamless money management. You can gauge which banks provide good customer service by reading reviews online, or by asking for recommendations from others in your industry. Even friends and family members might have an insight. Consider your early dealings with a bank before signing up, and think about whether you have been happy with the service so far. If an issue arises with your business bank account, you need to ensure that it will be solved quickly.
Sign up to our newsletter to get the latest from Business Advice.