One of the first things you will do when you set up a new business is to apply for a business bank account. Free business banking is something all business owners strive for, but what does “free” actually mean, and what should you look out for when opening a business account?
Free Business Banking
Many major UK banks offer incentives for startups – typically an initial period free of transaction charges, and a wide variety of free software products and guides. As a new business, a bank may well offer you freebies such as; free accounting software, business planning software, business guides, books, helplines and seminars to help you get your business off the ground and to encourage you to open a new business bank account with them.
You will typically find that offers are most beneficial for startup businesses who have just started trading. Existing businesses which have traded for more than 12-18 months are more likely to be offered more ‘standard’ banking terms.
When choosing a new startup business account, make sure you find out what any “free” banking periods actually cover – do they cover all transactions, or will you be charged if you make a large number of transactions each month.
Ask the bank what happens when any initial free banking period ends. Will you be automatically switched to the standard banking rates, or will you have a chance to benefit from any further discounted banking period?
You should also expect to be provided with a central point of contact from day one – your own business relationship manager. For businesses of all size, it is crucial to have access to a designated relationship manager to handle any questions or needs you may have along the way.
We have listed several of our banking partner offers below as a starting point, and we recommend you browse our library of small business banking guides (links below) before applying for a business bank account.
Banking Partners
Our banking partners on Bytestart offer a range of free banking services for startups:
Lloyds TSB offer 18 months free day-to-day banking, free Sage business planning software, a free book, ‘Getting Started in Business’, and a wide variety of start-up support and resources.
Barclays offer free business banking for up to 2 years (T&Cs apply), and free automated transactions when your free business banking period ends. Other free services include free data backup services, debt recovery help and access to business seminars.
NatWest is currently giving new business start-ups a package that includes; two years’ free Business Banking, a £500 fee-free overdraft in the first year (Subject to status. Over 18s only), a free Regus Gold Card Membership for 12 months – giving you unlimited access to 1,200 business lounges and cafes around the world – and no annual fee on a credit card.
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