Switching business bank accounts

Switching business bank accounts can be beneficial for:

• Saving money with lower fees and taking advantage of introductory offers.
• Managing your money better with apps and support.
• Getting exclusive products and rewards.

Take these three initial steps to change business bank account:

1. Check with your bank that you’re allowed to leave.
2. Find the best bank account for your business.
3. Check that your eligible for the account.

Spend a little while researching new bank accounts and thinking about what it is you want from them and what it is that you’re not happy with your current business bank account. Don’t just switch on a whim or without finding out all the details about the new bank.

When you’re ready, talk to the new bank to find out if you are eligible for an account and any deals. You’ll probably have to be a new customer but also there might be a limit on how long you’ve been trading, your number of employees and your turnover. Check everything the account offers and for how long, and what the bank’s process is for helping you switch including how long it will take (normally within seven days) and what you’ll need to do.

Research has shown that Brits stay with their bank on average for 17 years. Whilst many are happy with their bank, there are plenty who would consider changing but feel it’s too much effort.

That’s not the case. In recent years switching business bank accounts has become much easier with the banks doing the hard work for you. What’s more, there are often incentives to switch – whether that’s cashback or no-fee banking for a limited time. 

When considering whether to change, here are some of the things you’ll want to think about:

• Service – Clearly if you’re unhappy with your current provider’s service, it makes sense to change. Don’t let them take your business for granted. Have a look at how each bank performs in Customer Satisfaction Surveys and check out customer reviews online to get a sense of whether you’d be better elsewhere. 
• Cost – Frustratingly, new customers are often showered with special deals whilst loyal customers see their costs increase. If you think you’re spending too much on monthly account charges and transaction fees, there’s a good chance you can get a better deal as a new customer at another bank. 
• Account management – A supportive business bank can make a massive difference when you’re starting up or looking to grow. Many have dedicated account managers who can help your business with things like funding and grant applications. If you think you need this support and your current bank doesn’t offer it, it could be worth switching. 

Most banks are signed up to the Current Account Switch Guarantee meaning the switch should be straight forward and include the following:  

• It’s free.
• A switch date within seven days.
• You can choose the switch date.
• Your balance is transferred.
• Your incoming and outgoing payments are automatically moved.
• Your old bank account is closed.
• Any interest lost is reimbursed.

Before you switch business bank accounts:

• If you’re overdrawn, check if you can transfer the negative balance or if you need to clear it with your old bank.
• Review the payments on your old bank account and cancel any that aren’t needed anymore.
• Download your bank statements.
• Get your documentation ready for the switch including two proofs of name and address and the details of your old bank account with the account number, sort code and card number.
• Choose the date you’d like to switch.

Look at reviews, get recommendations and read the small print. Scout out great offers but remember these are normally for a limited time. Check out what the rates are for all the different transactions and work out which ones you do the most and least of and how much can you roughly expect to be paying.

There may be different transaction charges for the following:

• E-payments
• Depositing cash
• Debit card payments
• Cheque payments
• Standing orders
• Direct debits
• Getting change
• CHAPS
• Foreign currency transfers

What else do you want from your bank account? Consider what’s important to you and the business. For example:

• A good app
• Card terminals for payments in person
• Financial borrowing options – loans, overdrafts, credit cards
• A Business Manager
• 24-hour support
• 24-hour online and telephone banking
• Access to a nearby branch (with opening hours that suit you)
• Business insurance

You should also check on the bank’s service quality score and where they’re ranked compared to other banks based on the latest report from the Competition and Markets Authority.

These are the best business bank account switch offers available on the market at the moment. 

The table in this article gives an overview of the main offers and charges. Check each bank account for specifics on all details and charges and the most up to date information.

If you need more features or higher levels of assistance with your banking then you will have to look at the next level of business banking with these or other banks but they will come with more fees.

It’s also worth trying to negotiate the best offer you can – don’t assume what’s written down is all they can give you and remember they will be keen for you to switch to them.

Once you’ve chosen which bank you want to switch to you’ll need to tell them that you’d like to switch and apply for an account as normal. When the new account is open you’ll also need to complete:

• A Current Account Switch Agreement form
• A Current Account Switch Service Account Closure form

Your old bank will be obliged to pass on any payments that go into your old account by mistake for 13 months after the transfer.

Double check with your new bank whether they will inform those who you make payments to about the switch or if you need to. Monitor your payments carefully to make sure everything is working correctly and don’t forget to update your bank details on your invoices.