When you’re focusing on growing a business the last thing you want from your business bank account is for it to be costing you more money than it needs to. Compare free deals from different business bank accounts to choose the best one for you.
What is the difference between paid and free business bank accounts?
What you’ll discover when you first start looking at business bank accounts is that there are so… many… variables! Most business bank accounts will have charges for different things like:
However, some business bank accounts won’t charge for some or all of these transactions and many have free introductory offers. You’ll need to work out what your business bank account will mainly be used for and then look for bank accounts with free or low charges for those things. For example, you might be better off paying for a higher flat monthly fee if the transaction charges are lower or free and you think that you’ll be making a lot of those transactions.
How to choose the best free bank account
When you review the offers, also check the criteria for opening the bank account and getting the deal. You’ll probably have to be a new customer, have been trading for less than a year and they’ll be a limit on turnover (likely to be at least £1 million).
Getting the best deal on your bank account is great but also bear in mind that it’s not just rates that you should be weighing up. What else do you want from your bank account? Consider what’s important to you and the business, like:
Access to a nearby branch (with opening hours that suit you)
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.
How to switch from your business bank account to a free business bank account
If you already have a business bank account but want to swap to a free account then this is possible (check the exact criteria of the new bank account and offer). Many people are reluctant to switch bank accounts because of the perceived hassle but these days banks are making it more attractive and much easier. They’ll let you choose the transfer date, doing it within seven days (if you want), arrange your payments to be switched and generally ensure a smooth transfer process. 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.
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.
Often all you’ll need to switch are:
Proof of name and address
The details of your old bank account with the account number, sort code and card number
The date you’d like to switch
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.
Compare how long the offers last for and how much it will cost after. Consider whether it will be a better deal in the longer term to go with a bank account that doesn’t have such a strong introductory offer. Or if a good free introductory offer is more important to you in the period when you’re getting up and running (and if you are willing to switch accounts later).
Free business bank accounts
These business banks accounts have no monthly fees.