Yorkshire Bank Logo
Yorkshire Bank Business Current Account - Business Tariff
Overdraft Rate (EAR)
9.70%
Interest Rate (AER)
0.00%
Account Fee
£6.50 pm
Account Management
Available At Branch Available By Mail Available By Telephone Available Online Available By Mobile
Incentives
Account opening incentive
Start up incentive
Switcher incentive
Go To Provider's Site
General Account Details
Arranged Overdraft
Credit Interest Rates
Unarranged Overdraft
Benefits

General Account Details

Min Turnover £0
Max Turnover £0
Available To
Accountants
Associations
AVC Trustees
Businesses
Charities
Clubs
Co-operatives
Embassies
Estate Agents
Executors
Financial Intermediaries
Friendly Societies
Pension Fund Managers
Schools/Colleges
SIPP Trustees/Administrators
Social Enterprises
Solicitors
Trade Unions
Trust Fund

Arranged Overdraft

Arranged Overdraft Available
Overdraft Rate
£0.01 - £25000.00
9.70% EAR
£25000.01 +
Negotiable
Usage Fee N/A
Fee Free Overdraft Buffer N/A

Credit Interest Rates

Balance
Gross Rate %
AER %
£0.01+
0.00%
0.00%

Unarranged Overdraft

Unarranged Overdraft Available
Overdraft Rate
£0.01 +
33.51% EAR
Usage Fee N/A
Fee Free Overdraft Buffer N/A

Benefits

Account start-up incentive
Account switching incentive (other than cash)
Adviser offering financial services
Starling Bank Logo
Starling Bank Business Current Account
Overdraft Rate (EAR)
15.00%
Interest Rate (AER)
0.00%
Account Fee
N/A
Account Management
Not Available At Branch Available By Mail Available By Telephone Available Online Available By Mobile
Incentives
Account opening incentive
Start up incentive
Switcher incentive
Go To Provider's Site
General Account Details
Arranged Overdraft
Credit Interest Rates
Unarranged Overdraft
Benefits

General Account Details

Min Turnover £0
Max Turnover £0
Available To
Accountants
Associations
AVC Trustees
Businesses
Charities
Churches
Clubs
Estate Agents
Executors
Financial Intermediaries
Friendly Societies
Pension Fund Managers
Schools/Colleges
Scottish Solicitors
SIPP Trustees/Administrators
Social Enterprises
Solicitors
Trade Unions
Trust Fund

Arranged Overdraft

Arranged Overdraft Available
Overdraft Rate
£0.01 +
15.00% EAR
Usage Fee N/A
Fee Free Overdraft Buffer N/A

Credit Interest Rates

Balance
Gross Rate %
AER %
£0.01+
0.00%
0.00%

Unarranged Overdraft

Unarranged Overdraft Available
Overdraft Rate
£0.01 +
15.00% EAR
Usage Fee N/A
Fee Free Overdraft Buffer N/A

Benefits

Bank of China (UK) Logo
Bank of China (UK) Business Account
Overdraft Rate (EAR)
0.00%
Interest Rate (AER)
0.00%
Account Fee
£5.00 pm
Account Management
Available At Branch Available By Mail Not Available By Telephone Available Online Not Available By Mobile
Incentives
Account opening incentive
Start up incentive
Switcher incentive
General Account Details
Arranged Overdraft
Credit Interest Rates
Unarranged Overdraft
Benefits

General Account Details

Min Turnover £0
Max Turnover £0
Available To
Businesses
Charities
Clubs
Embassies
Schools/Colleges

Arranged Overdraft

Arranged Overdraft Available
Overdraft Rate
£0.01 +
Negotiable
Usage Fee N/A
Fee Free Overdraft Buffer N/A

Credit Interest Rates

Balance
Gross Rate %
AER %
£5000.00+
0.00%
0.00%

Unarranged Overdraft

Unarranged Overdraft Available
Overdraft Rate
£0.01 +
11.04% EAR
Usage Fee N/A
Fee Free Overdraft Buffer N/A

Benefits

Adviser offering financial services
Bank of Scotland Logo
Bank of Scotland Business Banking Clients' Call Account
Overdraft Rate (EAR)
0.00%
Interest Rate (AER)
0.05%
Account Fee
N/A
Account Management
Available At Branch Not Available By Mail Available By Telephone Available Online Available By Mobile
Incentives
Account opening incentive
Start up incentive
Switcher incentive
General Account Details
Arranged Overdraft
Credit Interest Rates
Unarranged Overdraft
Benefits

General Account Details

Min Turnover £0
Max Turnover £3000000
Available To
Accountants
Client Monies
Estate Agents
Financial Intermediaries
Scottish Solicitors
Solicitors

Arranged Overdraft

Arranged Overdraft Available

Credit Interest Rates

Balance
Gross Rate %
AER %
£1.00 - £99999.99
0.05%
0.05%
£100000.00 - £5000000.00
0.10%
0.10%

Unarranged Overdraft

Unarranged Overdraft Available
Overdraft Rate
£0.01 +
25.59% EAR
Usage Fee N/A
Fee Free Overdraft Buffer £50.00

Benefits

Barclays Bank Logo
Barclays Bank Business Current Account - Mixed Payments Plan
Overdraft Rate (EAR)
0.00%
Interest Rate (AER)
0.00%
Account Fee
£6.00 pm
Account Management
Available At Branch Not Available By Mail Available By Telephone Available Online Available By Mobile
Incentives
Account opening incentive
Start up incentive
Switcher incentive
General Account Details
Arranged Overdraft
Credit Interest Rates
Unarranged Overdraft
Benefits

General Account Details

Min Turnover £0
Max Turnover £5000000
Available To
Accountants
Associations
AVC Trustees
Businesses
Charities
Clubs
Co-operatives
Embassies
Estate Agents
Executors
Friendly Societies
Pension Fund Managers
Schools/Colleges
Scottish Solicitors
SIPP Trustees/Administrators
Social Enterprises
Solicitors
Trade Unions
Trust Fund

Arranged Overdraft

Arranged Overdraft Available
Overdraft Rate
£1000.00 - £5000.00
11.73% EAR
£5001.00 - £10000.00
10.72% EAR
£10001.00 - £15000.00
10.27% EAR
£15001.00 - £25000.00
8.64% EAR
£25001.00 +
Negotiable
Usage Fee N/A
Fee Free Overdraft Buffer N/A

Credit Interest Rates

Balance
Gross Rate %
AER %
£0.01+
0.00%
0.00%

Unarranged Overdraft

Unarranged Overdraft Available
Overdraft Rate
£0.01 +
33.83% EAR
Usage Fee N/A
Fee Free Overdraft Buffer N/A

Benefits

Account start-up incentive
Adviser offering financial services
Loyalty Bonus to account holders
Satisfaction guarantee
Barclays Bank Logo
Barclays Bank Business Current Account - e-Payments Plan
Overdraft Rate (EAR)
0.00%
Interest Rate (AER)
0.00%
Account Fee
£6.50 pm
Account Management
Available At Branch Not Available By Mail Available By Telephone Available Online Available By Mobile
Incentives
Account opening incentive
Start up incentive
Switcher incentive
General Account Details
Arranged Overdraft
Credit Interest Rates
Unarranged Overdraft
Benefits

General Account Details

Min Turnover £0
Max Turnover £5000000
Available To
Accountants
Associations
AVC Trustees
Businesses
Charities
Clubs
Co-operatives
Embassies
Estate Agents
Executors
Friendly Societies
Pension Fund Managers
Schools/Colleges
Scottish Solicitors
SIPP Trustees/Administrators
Social Enterprises
Solicitors
Trade Unions
Trust Fund

Arranged Overdraft

Arranged Overdraft Available
Overdraft Rate
£1000.00 - £5000.00
11.73% EAR
£5001.00 - £10000.00
10.72% EAR
£10001.00 - £15000.00
10.27% EAR
£15001.00 - £25000.00
8.64% EAR
£25001.00 +
Negotiable
Usage Fee N/A
Fee Free Overdraft Buffer N/A

Credit Interest Rates

Balance
Gross Rate %
AER %
£0.01+
0.00%
0.00%

Unarranged Overdraft

Unarranged Overdraft Available
Overdraft Rate
£0.01 +
33.83% EAR
Usage Fee N/A
Fee Free Overdraft Buffer N/A

Benefits

Account start-up incentive
Adviser offering financial services
Loyalty Bonus to account holders
Satisfaction guarantee
Barclays Bank Logo
Barclays Bank Clients Premium Account
Overdraft Rate (EAR)
0.00%
Interest Rate (AER)
0.20%
Account Fee
N/A
Account Management
Available At Branch Not Available By Mail Available By Telephone Available Online Available By Mobile
Incentives
Account opening incentive
Start up incentive
Switcher incentive
General Account Details
Arranged Overdraft
Credit Interest Rates
Unarranged Overdraft
Benefits

General Account Details

Min Turnover £0
Max Turnover £0
Available To
Accountants
Client Monies
Client Monies - Designated
Estate Agents
Executors
Financial Intermediaries
Scottish Solicitors
Solicitors
Trust Fund

Arranged Overdraft

Arranged Overdraft Available

Credit Interest Rates

Balance
Gross Rate %
AER %
£1.00 - £99999.99
0.20%
0.20%
£100000.00 - £999999.99
0.30%
0.30%
£1000000.00+
0.40%
0.40%

Unarranged Overdraft

Unarranged Overdraft Available

Benefits

Cater Allen Private Bank Logo
Cater Allen Private Bank Reserve Account
Overdraft Rate (EAR)
0.00%
Interest Rate (AER)
0.00%
Account Fee
N/A
Account Management
Not Available At Branch Available By Mail Available By Telephone Available Online Not Available By Mobile
Incentives
Account opening incentive
Start up incentive
Switcher incentive
General Account Details
Arranged Overdraft
Credit Interest Rates
Unarranged Overdraft
Benefits

General Account Details

Min Turnover £0
Max Turnover £0
Available To
Accountants
Associations
Businesses
Churches
Clubs
Co-operatives
Embassies
Estate Agents
Executors
Financial Intermediaries
Friendly Societies
Schools/Colleges
Scottish Solicitors
Social Enterprises
Solicitors
Trade Unions

Arranged Overdraft

Arranged Overdraft Available

Credit Interest Rates

Balance
Gross Rate %
AER %
£0.01 - £99999.99
0.00%
0.00%
£100000.00 - £499999.99
0.10%
0.10%
£500000.00+
0.15%
0.15%

Unarranged Overdraft

Unarranged Overdraft Available
Overdraft Rate
£0.01 +
25.00% EAR
Usage Fee N/A
Fee Free Overdraft Buffer N/A

Benefits

Clydesdale Bank Logo
Clydesdale Bank Professional Firms Client Account - General Clients Monies
Overdraft Rate (EAR)
0.00%
Interest Rate (AER)
0.00%
Account Fee
£6.50 pm
Account Management
Available At Branch Available By Mail Available By Telephone Available Online Available By Mobile
Incentives
Account opening incentive
Start up incentive
Switcher incentive
General Account Details
Arranged Overdraft
Credit Interest Rates
Unarranged Overdraft
Benefits

General Account Details

Min Turnover £0
Max Turnover £0
Available To
Client Monies

Arranged Overdraft

Arranged Overdraft Available

Credit Interest Rates

Balance
Gross Rate %
AER %

Unarranged Overdraft

Unarranged Overdraft Available
Overdraft Rate
£0.01 +
32.62% EAR
Usage Fee N/A
Fee Free Overdraft Buffer N/A

Benefits

Adviser offering financial services
Clydesdale Bank Logo
Clydesdale Bank Professional Firms Client Account - Designated Clients Funds
Overdraft Rate (EAR)
0.00%
Interest Rate (AER)
0.00%
Account Fee
N/A
Account Management
Available At Branch Available By Mail Available By Telephone Available Online Available By Mobile
Incentives
Account opening incentive
Start up incentive
Switcher incentive
General Account Details
Arranged Overdraft
Credit Interest Rates
Unarranged Overdraft
Benefits

General Account Details

Min Turnover £0
Max Turnover £0
Available To
Client Monies - Designated

Arranged Overdraft

Arranged Overdraft Available

Credit Interest Rates

Balance
Gross Rate %
AER %

Unarranged Overdraft

Unarranged Overdraft Available
Overdraft Rate
£0.01 +
32.62% EAR
Usage Fee N/A
Fee Free Overdraft Buffer N/A

Benefits

Adviser offering financial services
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A guide to business bank accounts

Michelle Monck

Michelle Monck

Consumer Finance Expert

At a glance

  • There are several different types of business bank account you can open. Consider which account best suits your individual circumstances before signing up.
  • Nearly all business bank accounts will come with fees – both a monthly standard charge as well as additional costs for things like depositing cheques or cash

What are the features of a business bank account?

A business bank account typically consists of a series of monthly and transaction fees, overdraft interest rates and credit interest rates. You can usually access your funds, make payments and transfers through internet banking, apps, by phone or in branch.

  • Monthly fees (standing charges) range from free to £30, with a market average fee of £6 per month.
  • Transaction fees may be applied for paying in and withdrawing cash or cheques, making or receiving electronic payments and debit card purchases.
  • Overdraft rates are shown as Equivalent Annual Rate or EAR, which allows you to compare the interest cost of going overdrawn. There are usually differing rates for arranged and unarranged overdrafts.
  • Credit interest rates do apply on some business bank accounts, but rates are usually not as good as a business savings account.
  • Nearly all business bank accounts allow online banking, while there are a range of banks who also offer phone and branch operation too and some allow transactions to be made via Post Offices.

What are monthly fees or standing charges for a business bank account?

Some banks will charge you a fee every month or quarter for banking with them. This standing charge may replace transaction charges, or it may be in addition to them. So, when comparing accounts, bear in mind how you will use the account and look at any standing charges alongside the transaction fees.

For example, if you will be making a lot of physical transactions by cash or cheque each month, an account with a standing charge but no transaction fees may be better.

What are transaction charges for business bank accounts?

Transaction charges are the fees the bank charges for handling money going in (credits) and coming out (debits). These charges may be made on physical transactions, such as paying in cash or processing a cheque payment, but also for automated payments (direct debits and standing orders) – although the charges for these transactions may be cheaper.

When selecting an account, you need to weigh up the transaction charges with the standing charges (as above). You also need to think about whether you will make a lot of physical transactions or automated ones, as the charges on each may affect your decision.

Aside from the obvious (shopping around to find the lowest charge), here are a few ways you may be able to minimise your transaction charges:

  • Don't exceed your overdraft limit.
  • Try to minimise your physical transactions (cash and cheques).

Automate as many regular transactions as possible with standing orders and direct debits. Making one-off payments using online banking can help keep costs down, too

What are business banking introductory offers?

A lot of banks will offer new business bank account customers free banking for a set period. This could significantly reduce your costs if you are a new start-up. However, while these offers may undoubtedly be cheaper in the near-term, take care when the introductory period ends. Although these introductory offers are ‘nice to have’, when selecting your account you should be thinking of more mundane things, such as the costs and charges after the introductory period ends, as well as the level of customer service. Several banks offer similar deals for established businesses who switch their account, so it may be worth considering switching banks to keep ongoing costs low.

What are the benefits of a business bank account?

  • It makes it easier to complete tax returns as your business transactions and income are not tied up with your personal affairs.
  • Some business accounts offer switching incentives and cashback.
  • New businesses can benefit from reduced monthly fees on some accounts.
  • If you employ staff, then you can use the account to process and make salary payments.
  • The option to make international payments in a range of currencies.

What do I need to open a business bank account?

To open a business bank account, you will need to check the account is available to your type of business, prove your identity as a director and give some basic information about your business, such as Companies House registration details and turnover. In summary:

  1. Check the account is available for your type of business, for example some accounts will only accept limited companies, sole traders or charities.
  2. Get your personal ID ready for all company directors – for example, a passport or drivers’ licence.
  3. Find your Companies House registration or Registered Charity number; depending on your business structure you may need to provide a partnership agreement, certificate of incorporation, trust deed or constitution (for clubs, charities, etc.).
  4. Have two to three years of audited accounts available; for new businesses have your business plan and forecast cashflow available – you may also need to share your personal banking statements.
  5. Understand your company credit history.
  6. If you are switching your business bank account, bring your current bank statements.

Is it quick to open a business bank account?

Small businesses, charities and trusts can switch their business bank account in seven days; thanks to the Current Account Switch Guarantee service. Just make sure the bank you are opening an account with is a member of the scheme.

The length of time it can take to open an account will vary by provider and can range from same day to several weeks – many banks publish service quality data that can give an indication of timescales.

Businesses can keep the process as swift as possible by preparing all the required documentation for when they start the account opening process. 

What is the best bank for a business account?

Every year, the impartial experts at Moneyfacts assess the flexibility, features and benefits of business bank accounts to identify the very best available in the market. Those that are top-rated receive a five-star award. In 2019, the business bank accounts that received a five-star rating were:

  • Allied Irish Bank (GB) – Business Plus
  • Bank of Ireland UK - Business Current (NI) - Agri Package
  • Bank of Ireland UK - Business Current (NI) - Small Business Growth
  • Bank of Ireland UK - Business Current (NI) - Small Business Start Up
  • Bank of Scotland - Business Current Account
  • Barclays Bank - Business Current Account -e-Payments Plan
  • Barclays Bank - Business Current Account - Mixed Payments Plan
  • Clydesdale Bank - Business Current Account - Business Tariff
  • Cumberland BS - Business Current - Option B
  • Danske Bank - Danske Small Business Digital
  • First Trust Bank (NI) - Standard Business Current Account
  • HSBC - Community Account - Churches, Executors, Administrators and Trustees
  • HSBC - Business Current Account - Electronic Banking Tariff
  • HSBC - Business Current Account - Small Business Tariff
  • Lloyds Bank - Business Current Account
  • NatWest - Community Account
  • NatWest - Business Current Account - Standard Tariff
  • NatWest - Business Foundation Account - Standard Tariff
  • Royal Bank of Scotland - Community Account
  • Royal Bank of Scotland - Business Current Account - Standard Tariff
  • Royal Bank of Scotland - Business Foundation Account – Foundation
  • Santander - 123 Business Current Account
  • Santander - Business Current Account
  • The Co-operative Bank - FSB Business Banking
  • The Co-operative Bank - Business Directplus
  • The Co-operative Bank - Business Current Account - Cash Tariff
  • TSB - Business Account - Electronic Business Tariff
  • TSB - Business Account - Business Extra Tariff
  • Ulster Bank - Business Current Account
  • Unity Trust Bank - Unity Current Account
  • Unity Trust Bank - Unity Custom Account
  • Yorkshire Bank - Business Current Account - Business Tariff

Can I use my personal bank account for my small business?

Most banks will include a condition in their personal account terms and conditions that the account is only for personal use and not for businesses. If you want to be 100% certain that you will not breach these conditions, then you should open a business bank account.

It is not a requirement of HMRC that businesses should have a separate business bank account, but they do require business owners to separate business and personal transactions.

 

Can you open a business bank account with bad credit?

While a limited company or partnership is a legal entity in its own right, if their directors have a poor credit history, then the ability to open a business bank account could be limited. However, there are guaranteed business bank accounts that do not run credit checks. Some examples of these include:

Pros and Cons of a Business Bank Account

  • They come with features that personal bank accounts do not have, such as the option for employees to have a company debit card, special overdrafts and the ability to receive customers’ payments via debit or credit card.
  • It keeps your business transactions separate from your personal account, making it easier for tax return purposes.
  • Business bank account providers should be able to manage the larger volume of money flowing in and out of the account. Some offer specialist services such as night safes, which allow deposits to be made securely outside of normal business hours.
  • Providers should be knowledgeable about how businesses work and therefore able to help with much more than the basics. You may have access to a relationship manager.
  • While some free business bank accounts are available, most will come with a monthly or quarterly fee.
  • Beware that some business accounts charge high fees for overdrafts and other usages.
  • Not many offer a decent rate of interest on the money you keep in the account.

Moneyfacts tip

Moneyfacts tip Michelle Monck

Some business banks offer free banking for a period of time from when you open the account. Once this introductory period has finished, you should review the new fees that apply and see if it is worth switching again. 

Looking for a business savings account instead? We can help you compare the best savings accounts and the best fixed rate bonds for businesses, as well as charity and club savings accounts and client accounts.

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