Best Bank For Business

Best Bank For Business

The type of business account or business accounts you choose will depend on the needs of your business.  For example, if you have a lot of transactions then accounts with a fixed fee may suit you better than an account that charges a fee per transaction.  Some accounts allow free direct debits or standing orders.

You may need the following accounts:

• A current account for day-to-day transactions, payments and receipts.  One which pays interest on credit balances is best, but not all banks provide this service.
• An instant access deposit account for any cash sums not needed for day-to-day operations.  These funds can be put into the current account and then accessed at any time.
• A term deposit account for funds not immediately needed and not likely to be needed at short notice.
• A foreign currency account if you are going to be trading overseas and particularly if you will receive and make payments in a foreign currency
• A loan account for any loans you take out.
• A merchant account to enable you to accept and process debit and credit card transactions.  See our guide on accepting debit and credit cards.

If your chosen bank does not have all the products you need or if you can get better deals for other products, such as a loan, from another bank, then you can hold accounts with more than one bank.  However, a bank may offer better terms if you commit all your business to it.

You should review your bank accounts at least once a year and compare charges with current rates using the business account finder on the Moneyfacts Online website. It is always an option to change banks to get a better deal.

Subscribers to the Business Banking Code have committed to making the transfer of bank accounts quicker and simpler for their customers.  Find out about the Banking Code and which banks have subscribed on the Banking Code Standards Board website.