Which is the best bank for your business?
Finding the best bank for your business can be an exhausting process. It takes hours of research which can be a challenge to factor into a busy day of work. That’s why we’re here to tell you which banks are a good fit for your business. So whether you’re just getting started or you’re looking for a change, here’s what you should consider.
There are several factors to consider when choosing the best bank for your business. These include the length of time an account takes to set up, availability of a mobile banking app, any free banking periods or deals available, and if there is an overdraft allowance. With all of these factors to consider, it can be a hard puzzle to figure out – everyone is always trying to offer the so-called ‘best’ deal, but which bank really offers the best?
Some banks offer bonuses for using them, with varying degrees of usefulness. We’ve already mentioned our preference for NatWest and RBS as they give you accounting software FreeAgent for free.
With all the time it takes to research the banks, set-up time is critical. The quicker it is, the better. It can take a matter of minutes up to an entire week. If you require an account as soon as possible, even two or more days set-up time might be pushing it a bit too much. It’s critical to think about how a quick set-up will affect the other factors of a specific bank. A good deal on setting up an account is fantastic, but this might mean other factors such as overdraft or overall bank rating might not match your needs.
For example, Tide scores well on a time scale as it takes only five minutes to get your bank account into action, but MetroBank or Barclays take considerably longer and may take up to a week. Natwest sits comfortably in the middle with an average set up time of five days.
However, other factors will need to be taken into consideration; Tide might score well on the time scale, but Barclays rates highest for the mobile app. If this matters to you and you think you will utilise a banking app, this factor might be a higher priority for you.
Aside from the time it takes to set up an account and app ratings, your thoughts will probably be more focused on the cost of banking. To make things easier and quicker to assess which is the best bank for your business, there are a few factors to consider, including:
- Cost of transactions
- Monthly fees
- Withdrawal costs
Transaction costs are relatively low but can quickly add up to a big cost if you’re not careful. Most transaction fees are under £1 and can be as low as 20p.
Tide ranks high for this factor too with a 20p charge per transaction and £1 withdrawal fees. Barclays offer the higher cost of 90p per £100 transaction, 35p per automated transaction, but offer free cash out.
NatWest, Lloyds TSB, and HSBC offer a healthy middle ground with transaction fees between 23p to 35p, with Lloyds TSB offering free electronic payment.
Overall, each bank offers something different which will benefit individual business needs. The topic is definitely a broad one which requires further exploration. We are not able to make a banking decision on your behalf but we can do our best to tell you about the best deals on the market.
If your business is in need of support, Big Hand can help. Our accountants live and breathe business and accounting so that we can help to take the weight off of your shoulders when it comes to the finer details of finances. Get in touch with us today on 0161 327 2911.