When you set up a business, one of your first tasks will be to choose a bank account. With many of the high street names offering ‘free business banking’, what does ‘free’ actually mean, and what else should you bear in mind when choosing a banking provider?
Free Business Banking for new businesses
Here are some things to look out for when choosing a ‘free’ business bank account:
- Almost all free business banking incentives only apply to start-ups, or recently established businesses.
- The typical length for free banking is 12-24 months, although offers do change on a regular basis.
- You may find that a certain number of transactions are provided for free, but fees may apply thereafter. If you run an online shop, for example, you will need an account with low transaction costs. If you are a self-employed consultant, you may be more interested in the standard monthly charge than any transaction costs.
- Other incentives the banks may offer include: free books, courses, software, seminars, and discounts on everything from accountancy services to office space.
- Always find out what type of account you will revert too when the free banking period expires. What will the standing monthly charge be, and how much will your transactions cost.
- There are many other factors to bear in mind when choosing a potential business bank. You should not necessarily use your personal bankers, although there may be benefits to having ‘linked’ accounts with the same bank.
- You should expect to be provided with a dedicated small business banking adviser, who can help you with a range of financial matters – especially when you are starting up.
You can find more tips in our Concise guide to choosing a business bank account.