> Bank Accounts
> Business Bank Account - UK Guide
In a nutshell
A bank account that is specially designed for use by businesses.
Best Bank Account For
Businesses of all sizes from the self-employed specialist through to major corporations can benefit from running a separate business bank account.
The whole point of a business bank account is that it is designed for business rather than for personal use. So, any business will be given specific advantages from this kind of account. For example, your business bank account may offer you a range of beneficial business services such as free access to a business advisor, business guides and advice, business software packages and special business overdrafts, savings accounts and credit cards. This can all go towards helping you run and develop your business more efficiently and effectively. It's always sensible to protect yourself by keeping your business and personal finances separate as well. You may also be offered a range of special offer services with business bank accounts - especially if you open a new account with a bank. For example, many banks will offer free banking to new customers for specific periods - which could save your business a lot of money. You may also be given interest on balances in your account - so your money will be working harder for you but will still be completely accessible. Your business bank account advisor may also be able to help you raise funds as necessary either through the bank or via grants and allowances. It's also always good to have an independent opinion and impartial advice - the majority of business bank providers will be able to offer all these services and will also be able to help you make the best of your cash flow and operational management. This can be of particular use to small-medium sized businesses and could save them money.
What to look out for
You should choose a business account that offers the most complete range of services that will suit you. You may not need all of these services now but, alternatively, they may be useful in the future. So, you should be looking for things like free business advice, financial or business software, credit cards, savings accounts and interest on your balances. But, at the end of the day, you should be looking at the charges you'll be paying most closely as this is what will affect your bottom line to start with. It's worthwhile shopping around for the best business bank account to suit your business both in terms of size, sector and how much you'll actually use the account (which will affect the costs you incur). For example, not all business bank accounts offer the best interest rates for any credit you have in your account.
You also need to be aware that after special offer periods most business banking accounts won't come free. You may, for example, be charged for paying money in or paying money out of your bank account. And, you are likely to be charged a regular administration/maintenance fee for simply having the account in the first place. You should also check out penalty clauses such as fees and costs if you go over any authorised overdraft, for example.
A business bank account is the best option for anybody running a business - no matter how big or small.