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2018-04-17T00:00:00+01:00

Which is the best bank account for your UK business in 2018?

Which is the best bank account for your UK business in 2018?

Finding the right bank account can be an incredibly important decision for your business. All UK businesses (unless you are a sole trader) are legally required to have a dedicated business bank account and each of the major banks, along with some lesser known names, have a range of specialised business bank accounts on offer. However not all business bank accounts are created equal, so it is important to compare accounts before choosing the right one for your business.

 What to look for in a business bank account

There are several key features which most business bank accounts will include, but the specifics of these can vary from account to account.

Fees

Most business bank accounts come with a monthly fee. This usually ranges from around £5 to £15, but can be much higher for larger businesses with higher turnovers and more complex banking requirements. To entice new customers many banks offer an initial period of fee free banking for between 12 to 25 months, although it is important not to get carried away with the length of the fee free term and to check what the standard fees will be after this.

Transaction charges

These are variable charges that are additional to the monthly fee that may be levied on certain operations such as foreign currency transactions, overdraft fees, CHAPS payments and change-giving fees. If you are likely to be doing any of these regularly it is important to find a bank account that either provides these services for free or for a lower charge.

Interest rates

Hopefully your business will be doing so well that your account will be in credit, in which case you will want to earn interest, so check the potential interest rates of different accounts. You may also want to move any surplus cash into a dedicated savings account. This is usually much easier to do within the same bank or banking group, so check out the rates and terms of your chosen bank’s business savings accounts too.

Location or online banking

Depending on how your business will be operating you will need to compare the location of your bank’s branches, their online services, or both. If you are running a shop or otherwise handling cash sales having a convenient and local branch is a must, whereas a good online banking provision is vital if you expect most of your business to be electronic. Most banks provide online banking services for free, but some may charge so ensure that you read the fine print.

 The best UK business bank accounts in 2018

 So taking all of the above points into consideration, which are some of the best business bank accounts? In no particular order:

 Santander Start-up Business Current Account

Fee Free Period
12-18 Months
Available to:

Limited companies, partnerships and sole traders with up to 2 owners/directors in their first year of trading
Annual Turnover
Unlimited
Other features

Fees apply to non-standard services such as change-giving, CHAPS payments and foreign currency transactions
Standard Fee
£7.50 per month
Interest Rate
0.1% on credit balances
Overdraft Rate
5.5% EAR (variable)

HSBC Start-up Business Account

Fee Free Period
18 months
Available to:

Limited companies, partnerships, sole traders and charities
Annual Turnover
Up to £2,000,000
Other features

Choose either their Small Business or Electronic Banking Tariff. Fees apply for some services
Standard Fee
£5.50 fixed for 12 months
Interest Rate
0% AER
Overdraft Rate
Negotiable

Clydesdale Bank Business Current Account

Fee Free Period
25 months
Available to:

Companies, partnerships, sole traders, clubs and societies, charities and schools
Annual Turnover
Up to £2,000,000
Other features

Borrowing charges and charges for additional services e.g. CHAPS & international payments, apply during the fee free period
Standard Fee
£5.00 per month
Interest Rate
0% AER
Overdraft Rate
Negotiable

Barclays Start-up Business Account

Fee Free Period
12 months
Available to:

Limited companies, sole traders and partnerships
Annual Turnover
Unlimited
Other features

Choose either the Mixed Payments or e-Payment Plan depending on your business needs
Standard Fee
£6.00 or £6.50 per month
Interest Rate
0% AER
Overdraft Rate
Negotiable

Yorkshire Bank Start-up Business Account

Fee Free Period
25 months
Available to:

Limited companies, sole traders and partnerships
Annual Turnover
Up to £2,000,000
Other features

Borrowing charges and charges for additional services e.g. CHAPS & international payments, apply during the fee free period
Standard Fee
£5.00 per month
Interest Rate
0% AER
Overdraft Rate
Negotiable

Natwest Business Current Account

Fee Free Period
18 months
Available to:

Limited companies, sole traders and partnerships
Annual Turnover
Up to £1,000,000
Other features

Award winning mobile app and complimentary FreeAgent accounting software which links to your bank account
Standard Fee
£5 Monthly account fee waived if transaction charges are over £5
Interest Rate
0% AER
Overdraft Rate
Variable rate, fee free for 12 months

Cashplus Business Current Account 

Fee Free Period
N/A
Available to:

Limited companies, sole traders, partnerships and charities
Annual Turnover
Unlimited
Other features

Online alternative to high street banks, apply instantly online with no credit check. Counter services available at Post Offices
Standard Fee
£69 per annum
Interest Rate
0% AER
Overdraft Rate
Upon application

Royal Bank of Scotland Start-up Business Account

Fee Free Period
24 months
Available to:

Limited companies, sole traders and partnerships
Annual Turnover
Up to £1,000,000
Other features

Charges for unarranged borrowing, additional services & Bankline charges are excluded from the free banking offer
Standard Fee
£5 Monthly account fee waived if transaction charges are over £5
Interest Rate
0% AER
Overdraft Rate
Variable rate, fee free for 12 months

CardOneBanking Small Business Account

Fee Free Period
0 months
Available to:

Limited companies, sole traders and partnerships
Annual Turnover
Up to £2,000,000
Other features

Online service available with no credit checks. £55 application fee applicable
Standard Fee
£12.50 per month
Interest Rate
0% AER
Overdraft Rate
Not available

Cumberland Building Society Business Bank Accounts

Fee Free Period
12 Months
Available to:

Limited companies, sole traders, partnerships and charities
Annual Turnover
Unlimited
Other features

2 options (A & B) to suit your business needs
Standard Fee
£3.00 - £5.00 per month
Interest Rate
0.1% AER
Overdraft Rate
12.73% variable EAR

You’ve found your perfect business bank account, what next?

Once you have found your perfect bank account, the next thing to do is to make sure that you are working with your perfect accountant. A great accountant will not only ensure that your annual accounts are filed on time, but they will also ensure that your business is running efficiently as well as sourcing numerous ways to add value to your business.

Handpicked Accountants specialises in connecting small business owners and company directors with their perfect local accountant. Each firm featured on Handpicked Accountants has been thoroughly vetted prior to their inclusion so you know that you will be working with an accountant that you can rely to do a great job, putting the needs of your company first and for a fair price. Contact Handpicked Accountants to find your perfect accountant today.

David Tattersall
Speak to a Handpicked Expert today

Hi there - I'm David from Handpicked Accountants. If you need help finding the right accountant, simply give me a call. My expertise is in connecting business owners with the very best professional services and I'm on hand to assist you today.

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