How To Get Free Banking For Your Business

There's no need to pay when you can get free business banking from two of the major UK banks when you are starting a new business or switching an account from an existing bank.

Opening a business bank account is easy as you can do it online or via the telephone. The small business owner gets most benefits from these deals as there are no fees on the business current account and you'll get paid some interest on any credit balances.

Alliance and Leicester Free Banking

• Available for start-ups or existing businesses
• Fee free day to day banking for life
• 0.25% interest paid on credit balances
• Online internet banking and telephone banking
• Access to branch network and Post Office counters service
• A&L will also transfer your existing standing orders and direct debits
• Alliance and Leicester free business bank account details

The Alliance and Leicester have been running their fee free banking offer for many years now. The A&L are part of the massive Santander Group that also own Abbey. This offer is available for new businesses and existing businesses wishing to switch their account.

Abbey Free Banking Account

As the Abbey is also part of the Santander Group they also offer a free business banking account. It operates in a similar manner but also pays a massive 5% AER on credit balances. The main elements of their offer are:

• Unlimited direct debits, standing orders and bill payments
• Unlimited debit card payments
• Unlimited automated BACS credit
• Unlimited transfers between linked Abbey accounts
• 100 cheque deposits per month
• 100 cash and cheque withdrawals per month
• £3,000 in cash deposited per month
• 5% AER interest on balances up to £2,500 per month
• Charges for non standard services such as overdrafts and stopped cheques
• Apply online or call 0800 328 6400
• Abbey's home page

Other Major Banks

The other main banks also offer free banking but for a limited period and then after that will make various charges. See our business bank accounts comparison charts for more details on the charges after the free period comes to an end. The free period offered varies and is shown below for the four main high street banks.

• HSBC - 18 months
• Barclays - 12 months
• Natwest - 24 months
• Lloyds TSB - 18 months
• Co-operative Bank - 18 months
• RBS - free if you don't need to use a branch (ie: operate your account via telephone or the internet)

Other Ways to get Free Banking

If you approach the banks direct you will get the offers as mentioned above but if you are a member of various business clubs and associations they will be able to offer a better deal. These are shown below:

• Federation of Small Businesses (FSB) - offers free business banking for life via the Cooperative bank - no fees at all so long as you are a FSB member and apply via their site. FSB membership costs from £170 per year for 1-4 employees and offers other great benefits as well so well worth a look.
• Operate online and via the telephone - if you never need to use the facilities of a branch network then HSBC and RBS offers free business banking if you interact with them via the phone or internet. There are no monthly charges either.

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