Choosing a Business Bank Account
Business banking is priced differently from personal banking, and the headline monthly fee is frequently the smallest component of what a business actually pays.
Where the charges sit
Monthly account fee, sometimes waived for an introductory period.
Per-transaction charges for payments in and out, which vary by type — electronic transfers are cheap, cash and cheque handling is not.
Cash deposit charges, frequently expressed per hundred or thousand deposited, which matter enormously for retail and hospitality businesses.
Charges for international payments, standing order setup, and sometimes for using a branch rather than digital channels.
A business handling significant cash pays a very different total from one taking only card payments, on the same tariff.
Modelling it properly
Take three months of actual activity: number of payments in and out, cash deposited, cheques, international transfers.
Apply each provider's tariff to those figures and total it annually. That number is comparable; the monthly fee is not.
The ranking frequently reverses once transaction volume is included.
Traditional banks versus digital providers
Established banks offer branch access, cash handling, and lending relationships that matter if you will need credit.
Digital providers are typically cheaper, faster to open, and better integrated with accounting software, with limited or no cash handling.
For a business that needs to deposit cash regularly, a digital-only provider is impractical regardless of price.
Practical requirements
Integration with your accounting software, which saves meaningful bookkeeping time through automatic transaction feeds.
Multiple user access with permissions, so a bookkeeper can view without being able to make payments.
Sub-accounts or pots for setting aside tax, which is a genuinely useful discipline.
Payment speed, and whether faster payment types are supported.
Opening the account
Expect identity and business verification: registration documents, proof of address, details of directors and beneficial owners, and an explanation of what the business does.
Certain sectors face additional scrutiny and some providers decline them entirely, so check before applying if you are in a higher-risk category.
Allow time. Account opening can take weeks with some providers, which matters if you are waiting to invoice.
Whether a business account is required
For an incorporated company it is, since the company is a separate legal entity and its money must be kept separate.
For a sole trader it is frequently not legally required, and a separate account is still strongly advisable for record keeping. Many personal account terms prohibit business use, so check rather than assume.
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