The banking needs of a business are very different from that of an individual. As a result, you should focus on some specific factors before making a decision. 5 such factors business owners should watch out for when selecting a bank in the UK are discussed in this post.
Selecting a bank in the UK for your business account might seem like an unimportant decision, no matter if you are running an already established enterprise or starting a new venture. But the decision is critical as it could cost or save your business a significant amount of money. Moreover, it will also play a vital role in how your business is able to manage its finances.
But as the banking needs of a business are very different from that of an individual, there are some specific factors that business owners should focus upon when making the decision. 5 such important factors are discussed below-
1. Types of Business Account
To begin with, the first thing you should know is the type of business account you need. There are options such as Current Account, Savings Account, and Business Fixed Deposit Account. If your business is involved in international transactions, then you can also consider a Forex Account.
The working and features of all these different accounts vary significantly. Thus, business owners should first thoroughly understand the banking needs of their business as this will make it easier for them to select an account that best meets their requirements. Choosing a bank that offers an extensive range of business banking products can be a smart choice.
2. Online Account Access
In this modern age of cut-throat competition, who has the time to visit the bank every time they need to make a transaction. As a result, it is essential for the account to come with online banking facility. You should be able to access your business account securely anytime you want.
Some of the top banks in the UK also have their mobile apps for enhanced convenience. Prefer such banks as they offer maximum flexibility regarding how you handle the finances of your business.
3. Interest Rate
If you are going for a Savings or Fixed Deposit Account for your business, then do check the interest rate offered by the bank. The higher the interest rate, the higher your income will be from your business savings deposited into the account.
Prefer a reputed bank that is known to offer highly competitive interest rates. The official website of the bank should provide detailed information about the latest interest rates.
4. Multi-Currency Transactions
If your business transactions are in multiple currencies, such as Euro, GBP, and USD, then a single business account should provide you with the flexibility to manage your business finances. There are only a few banks in the UK that allow multi-currency transactions with their Business Current Accounts.
Such accounts will eliminate the need to get the funds exchanged to an acceptable currency every time you want to make a deposit or withdrawal.
5. Relationship Manager
Businesses often have complex banking needs. Thus, it is critical to have someone from the bank you can get in touch with in case of any queries. For instance, a few banks offer a dedicated relationship manager to every business banking customer. This will ensure that you can get all the assistance you need as and when required.
Also, ensure that there are multiple ways to contact the support department of the bank so that you don’t end up losing any business opportunity due to delays or miscommunication.
Selecting the Best Business Account in the UK
While there are several banks that offer business accounts in the UK, the selection should be based on your custom requirements and expectations.
Focus on the factors listed in this post to select a bank account that can contribute to the growth of your business.