Small Business Bank Accounts

Here's a run download of the best small business bank accounts offered by banks in the UK that are easy to open online and great for startups or existing businesses.

Almost all banks offer the same facilities as each other such as internet banking and telephone banking but the charges vary greatly and this article helps you choose wisely.

What do You Need from Your Bank ?

Most people choose a bank account by walking down the high street and if you own a shop and need to bank cash each day then that is probably your best option. However, if like most businesses you don't need to walk into a bank each day and can undertake banking online then there are plenty to choose from.

Most banks offer some period of free business banking from 18 months for the "big 4" to "forever" with a couple of building societies turned banks and for sure this is the way most banks will move over the years.

When deciding on which bank account to open consider the following requirements for your business:

• Will you need a business loan
• Will you need to deposit cash receipts
• Will you use internet or telephone banking
• Will you have large cash deposits so need a higher rate of interest for these business savings
• Will you require an overdraft at any point
• Will you need to speak with your bank manager on a regular basis

Your business requirements will determine what type of relationship you want with your bank. Most of the big 4 offer some form of business relationship manager but that comes at a price as the fees charged for depositing and withdrawing from the business account can mount up over the years.

Charges and Fees - a Comparison

Here's a quick run down on some of the charges and fees offered by the major banks

Bank	Free Banking?	Monthly Fee	Standing Order	Deposit Fee	Interest Earned
All & Leicester HSBC Barclays Natwest Lloyds TSB	forever 18 months 12 months 24 months 18 months	FREE £3.15 £5.50 £6.00 £5.00	FREE 54p 54p 45p 40p	FREE 18p 15p 22p 20p	0.40% 0.10% 0.10% 0.10% 0.10%

As you can see from the table above for a small business there are fees involved for all the big 4 banks except for the Alliance and Leicester Bank Account. It's easy to open account online and it can be done in minutes.

Other Things Small Business Owners Should Consider

Some banks have small business departments that work exclusively for small business owners by offer specialist skills and services to help startups through the early stages especially for managing cash flow in the early months and years. Be sure to ask what their experiences are (ie: have they run a business themselves and understand the frustrations in not getting paid on time).

If you are starting off self employed and are using your personal bank account for business transactions you may find your bank starts to reject any income payments because they are made out to your company name and not yours. So as soon as you start trading or begin to purchase items for your startup you should consider getting a bank account right away to separate all the transactions (which also makes it easy for your accounts and the Inland Revenue should they come calling and want to inspect your accounts).