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Finance
Mortgages, pensions, loans, shares, savings |
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Choosing a bank account
Choosing a bank account
When choosing a bank account for your business it’s a good idea to shop around for the best deals. Many banks offer “free-banking” for up to 18 months, but just how free is it?
What is free banking?
The term “free-banking” seems to be a little misleading. With most business bank accounts you pay a tariff for transactions (e.g. paying in a cheque) and a monthly fee (Barclays charge £18.80). The monthly charge is purely for the privilege of being a business customer. With some banks you also have to pay a fee when your account exceeds a certain limit. So if you’re a small business - like me - or a new start-up, these charges soon become a bit of a headache.
No monthly charges
I have an account with The Co-operative Bank through the Federation of Small Businesses. There is no monthly charge which is great news for sole traders. So if you’re a member of the FSB it’s well worth looking into.
Tips
Get a comparison of at least 3 bank accounts
Be prepared to have some figures ready (cash-flow forecast or profit and loss)
Don’t just stick to where your current account is held, although doing so does speed up the authorisation process
Make sure that you are fully aware of what the tariffs cover
Check out the access options to your account, most people like to have a wide choice
And lastly a good relationship with your bank is essential, so make sure that you’re comfortable with what’s on offer – don’t be afraid to ask questions!
Fiona Seymour-Jesse
SJ Copy
http://www.sjcopy.co.uk/
Useful Links
Federation of Small Businesses
http://www.fsb.org.uk/
The Co-op Bank
http://www.co-operativebank.co.uk/
Money Supermarket
http://www.moneysupermarket.com/businessfinance/
Business Link – Choose and run a bank account
http://www.businesslink.gov.uk/bdotg/action/layer?r.l1=1073858790&topicId=1073959004&r.l2=1073858942&r.s=tl
The finance pages of Business in Berkshire are for general guidance only and advice should always be sought before acting on any of the suggestions made
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