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Table of Contents
- Business bank accounts allow you to easily manage your business’s money and keep it separate from your personal funds.
- There are different types of business accounts, but a business current account is the most important.
- Features and charges vary across different accounts, so comparing business bank accounts is the best way to find what you need.
A business bank account is a place for your business’s money, transactions and financial organisation. Whether you’re a baker, a consultant or a freelancer, a business bank account will be the hub for the regular ingoings and outgoings of your business.
It’s the account from which you will send money to clients, receive payments from customers, track your expenses and much more. Some accounts even include invoicing tools and accounting software to make handling taxes a breeze.
There are even sole trader business accounts, start-up business accounts and joint business bank accounts. This variety ensures there is an account for every type of business owner.
Compare the latest business bank accounts from top UK providers, including:
What bank accounts does a business need?
There are three main types of business accounts you might need.
A business current account, often simply referred to as a business bank account, allows you to manage your business’s regular finances. Buying equipment, selling products and paying employees are all examples of the ways a business owner will use their current account.
This is the main type of account this article refers to and is something almost all businesses will need.
While business current accounts are for daily use, business savings accounts are for money you can afford to put aside and grow. Just as with personal savings accounts, some will allow you to dip in and out but sometimes the best rates of interest are reserved for fixed term accounts.
Finally, if you take out a business loan, you may find yourself using a business loan account. These accounts, also known as loan servicing accounts, are used entirely for your loan and are often used when the borrower does not have an existing current account with their lender.
What features does a business bank account have?
Standard features of a business bank account often include:
- Fees: Unlike most basic personal current accounts, many (but not all) business accounts charge a monthly maintenance fee.
- Debit card: The simple way to pay for day-to-day business purchases in-person.
- Transactions: The capability to send, receive, deposit and withdraw money. Includes Direct Debits, Standing Orders, transfers and more. These transactions may be free or carry a cost, depending on the account.
- Accounting software: Most accounts are compatible with third-party accounting software or include access to an equivalent.
- Mobile app: All providers now offer a smartphone app so you can bank on the go.
- Business support: Many providers have relationship managers in place to support your business.
- Invoicing tools: Asking for payment from customers and tracking what is owed can be made significantly easier with these tools.
- Savings pots: An increasing number of accounts offer savings pots, which let you earn interest on a fenced-off portion of your money without having to open a dedicated savings account.
These fairly basic features illustrate why a business bank account can be so helpful to business owners.
Some providers offer a free business bank account, which is a low-cost option for business owners who don’t mind missing out on some features. Others offer an online business bank account, which prioritise app- and web-based functionality over in-person banking.
There are also some unique features you might only be able to find from one or two specific accounts.
For example, a Monzo business bank account will enable you to take contactless payments with your smartphone.
A Revolut business bank account provides many features for international businesses, including support for more than 25 currencies.
Meanwhile, an ANNA Money business bank account includes a free trial of bookkeeping tools designed to keep your business one step ahead when it comes to taxes.
Find your business bank account
Business bank accounts are a great way to organise your business’s finances. But different accounts carry different features and charges.
This can make finding the right account for your business a real challenge. Luckily, NerdWallet can help you to easily compare business bank accounts and find your perfect match.
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