Having an in-depth knowledge of your business bank account will mean that you can get the most out of your banking. A business account will help you to manage your finances, and track your progress when it comes to revenue and profits.
Choose The Best Introductory Offer
When you choose your business bank account, you will find there are lots of introductory offers which can help you to compare accounts and choose the right one.
These offers usually involve a period of free banking, so you don’t have to pay a monthly fee. Introductory offers usually last for about 25 months, depending on the provider, so you can avoid extra fees while you’re establishing your business.
Some offers will exempt you from transaction fees, so you can deposit money for free. If you can shop around a few physical and the best digital banks for the best introductory offer, you can avoid some expensive fees so you can concentrate on turning a profit.
You might find that your business account will offer a cashback bonus for a short time, or even on a permanent basis. As a start-up, this can really help to offset the additional charges that can come with accounts, or can cover the additional expenses you need to make in the first year of operating.
Know Your Business Banking Fees And Charges
The first important part of business banking is to gain an understanding of the fees that are involved with a business account. Fees are usually to do with money entering or leaving the account, as well as more specialised transactions.
The following fees will usually apply to your new business bank account:
- Application fee. Some business accounts will ask for a one-off application fee when you open the account.
- Monthly maintenance fees. This is the fee that you’re required to pay as the owner of the account, usually paid on a monthly or annual basis.
- Transaction fees. These are payments using debit or credit cards online, usually taken through direct debit, standing order, or transfer.
- Non-standard transaction fees. Your provider might charge fees for handling non-standard transactions such as foreign currency.
- Deposit fees. Your bank may charge you for depositing funds and investments. Depending on the terms of your account the electronic deposit is sometimes free, whilst cash or cheque deposits get cheaper when you deposit more.
- ATM withdrawal fees. Your bank account can charge you for withdrawing cash via an ATM or from a local branch.
- Overdraft fees. You will probably be charged a fee for using an overdraft, but these fees will be less if it is an arranged overdraft.
Depending on what the terms of your business account are, you can change the way you handle your business banking and choose the right business account to suit you. For example, if your customers usually pay by card, it would make sense to have a business account where it’s free to make electronic deposits into your bank account.