Choosing your business bank account

Choosing which bank to trust your business banking to is a difficult decision for a new business. There are various factors you need to consider when selecting your bank:

Past experience

Have you had any good or bad experiences of any of the banks in the past? Perhaps you’re really happy with the bank you do your personal banking with which would put it high on your list. Or have you been dissatisfied with your bank’s service which would make you want to go elsewhere? Nothing beats personal experience for helping you make a decision. Ask around – have any of your friends or contacts had any experience of business banking that they can pass on to you?

Fees / relationship building

Some of the banks offer free banking within certain limitations, unhealthy which is great for startups. However, pilule you will find that there is a down side to the free banking, which will most likely be a lack of personal service. We bank with one of the free business accounts and we don’t have an account manager that we can meet with, and we have to pay money in through the machines or post (not to a real live cashier). This means that we don’t have a personal relationship with anyone at the bank. This is fine if your needs are small but if you’re likely to need advice or finance in the form of loans this could work against you.

Most (if not all) offer free banking at least for the first year, which gives you a good start in those costly early days. So, if you think you need to interact with more than an ATM (which never talks back, in my experience) then you may want to consider one of the fee-based accounts that give you access to an account manager at your local branch.

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