When you are starting up your own business, or considering using business bank accounts for the first time, you may want to look at basic business accounts. Basic business accounts simply allow you to store your businesses money in a business bank account, so you don’t get the money confused with your own.
You’ll often be given a debit card with the account, and a cheque book, and you’ll be able to pay money in, and pay money out in the same way you would with a personal bank account.
Do I have to pay for basic business accounts?
Generally speaking all business accounts will cost you money at some point, but some banks offer introductory offers of free business banking, sometimes for as long as two years. The cost of the account often depends on the amount of money you pay into the account, and the number of transactions you carry it.
Banks will make money from you having a large credit balance, but it costs them money to process cheques and other transactions, particularly when they are carried out over the counter in the branch.
If you make very few transactions and always have lots of money in your account then you may be able to take advantage of free business banking for at least a couple of years, after which you may have to pay a small monthly fee.
Other basic business bank accounts will charge you a small fee for each transaction you make, rather than charging a monthly or annual fee.
Why do I need a basic business account?
If you are running your own business you should have a business account of some form, as you are not supposed to use personal consumer bank accounts for business purposes. You often benefit from free advice from your bank, as well as a faster service and in many banks a priority queue system.