Business Account Charges

Have a comment on business accounts? Visit our Forum

Business accounts differ from personal accounts when it comes to charges. Many business accounts charge for day-to-day transactions, such as paying in cheques or making standing order or direct debit payments.

Charges are calculated in different ways depending on the bank. Some banks prefer to charge for individual transactions, whilst others charge based on turnover for a monthly or say quarterly period. More....

Give some thought to how you will be banking, ie will you have a large number of monthly transactions or payments made by cheque. (Cheques usually incur the highest charges). If so, you need to know how your bank intends to charge you for this service. Business accounts for this reason can be expensive.

Automated payments usually avoid excessive charging because there is little labour costs incurred by the bank. Internet banking, therefore, is usually a cheaper way to manage your account transactions.

Try negotiating

If you are switching accounts to another bank or are a start-up business, you should be able to get more favourable terms in relation to charges. An introductory offer can give some welcome reprieve until you get your business up and running.

Whether your business is a start-up or not, it is always worth negotiating for a better rate of charges. You may be able to arrange a system with your bank whereby you only get charged once a certain amount of cheques have been paid in or out. It is important to know what method of charging suits before you flex your negotiation skills.