The importance of the right business bank account

Choosing a business bank account is an important stage for any business. If you are in the process of launching a startup, it is essential to choose the most suitable bank account from the beginning.

But what factors should you consider to help you make the right decision?

Charges and fees

When choosing a bank account for your business, one of the first things to look at is the various charges and fees that apply.

Business accounts are not like personal accounts because you will usually have to pay a monthly or quarterly fee as well as charges for many transactions such as depositing cash and cheques, transferring money and withdrawing cash.

Some banks may charge low monthly or quarterly fees but have high transaction costs. Others may charge higher monthly fees that include the cost of a certain number of transactions.

You must therefore look at the overall costs of running various accounts and decide which one will cost you less overall based on the amount of transactions that you expect to make.

Introductory periods

When you first open an account, it may come with an introductory period where you do not pay any fees for the first six months, 12 months or more.

Although they may be tempting, try not to let these offers influence your decision too much. Instead, always make your choice based on the regular charges after the free period ends.


The facilities available are also important when you choose a business bank account. Most accounts come with a list of basic facilities such as the option to carry out transactions online, a telephone banking service, and a cheque book.

However, some banks may provide extras. For example, some accounts may provide better overdraft facilities with more attractive rates and fees, so this may be worth taking into account.

Others may provide special services for businesses that deal with foreign clients. You may also find that some accounts come with access to a specialist adviser who can provide advice on running your account, funding growth and expanding your business.

Some accounts may come with better savings account facilities with more attractive rates, should this be something that may be important for you either now or in the future.

Does the bank feel right?

As well as the maintenance costs and the facilities, another aspect to consider is whether the bank feels like a good fit for you and your business. You want to enjoy a good relationship with the bank because it will be with you as you grow your business over the years.

You may want to enquire about other options in the future, such as loans. Having a good relationship with your bank is often useful in such circumstances.

Having said that, whenever considering loans, you do not have to go to your own bank. Your bank may provide loans, but other lenders may be more suitable. You can find out more about business loans from a range of sources.

For example, at you can find a detailed explanation of what is involved to make the whole process easier to understand. Try to look at a range of sources to find further information and get a good picture of what is involved should this be something you are considering either now or in the future.

Location of nearest branch

The physical location of the nearest branch may or may not be an important factor for you. However, if you have to deposit cash in the branch numerous times each week, a branch located nearby will be useful, so take this into consideration when making your decision.

Find the most suitable bank for your business

Choosing a bank account for your business is not a process that should be rushed. Take your time, go over all of the factors that are important to you, and make sure you look at a range of accounts to find out exactly what is available.

By choosing the most appropriate bank account from the start, your bank can become a useful partner as your business grows and develops, and you can avoid the hassle of switching at a later date.

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