Where can you get fee-free business banking?

fee-free business banking

Where can you get fee-free business banking?

Balancing the books and making sure you maintain a strong cash flow requires a lot of energy for small businesses. Keeping things on the up and growing your business is a priority, so worrying about charges from the bank is the last thing you want to be doing. Therefore, taking advantage of free banking periods from high-street banks is a great way to boost your business bottom line in the initial stages.

How does free business banking work?

If you’re a sole trader, you may get away with using a basic bank account rather than a business account. But limited companies in need of a business account could face fees of £25 per transaction if you don’t choose the right account from the get-go. This could seriously weaken your cash flow. So it’s worth looking for a bank that offers a fee-free period when you open a business account.

High street fee-free business accounts

Free business banking periods save your business from the annual fees you may otherwise be liable to pay. There are several banks that offer 12 months or more of fee-free banking, with accounts tailored to small businesses:

This account is open to businesses who have been trading for under a year with an annual turnover below £1m. For 18 months you can get fee-free banking and no annual fees on their business credit card for 12 months. You can also get a fee-free overdraft of up to £500. However, this offer excludes additional services such as unarranged borrowing, bankline charges, and at the end of the fee-free period, you will automatically go onto their standard tariff. You also receive the highly-acclaimed Free Agent accounting software for free for life as a customer. Rival products, such as Sage and Xero, are usually expensive alternatives you can’t afford at the start.

This account is suitable for SMEs with up to two directors, shareholders, or partners. It offers a fee-free period of 12 months (18 if you are an existing customer) and you can also earn variable interest around 0.10% gross/AER. Santander has a good business banking reputation after being awardedBest Business Current Account Provider’ for 15 years running. Once the free period is up, you’ll move onto their £7.50 monthly tariff.

This bank account is suitable for start-ups with an annual turnover of up to £2 million. HSBC offers an 18-month, fee-free period and after your free-banking period ends, you can get 12 months at a fixed price (£5.50 per months as it stands). They also ensure that when the time comes, they adjust your tariff to suit your business needs, however, this is based on their annual review of your account activity.

Other banks offering accessible fee-free business banking for SMEs and start-ups include:

  • Barclays
  • Clydesdale
  • Metro

Do the right thing

Ultimately, the right choice comes down to your unique business, but making sure to take advantage of these offers can ensure in the initial stages of your business you are not weighed down by unnecessary fees and are free to grow.

If you need more help finding the best ways to manage your finances, get in touch with the accountants at Big Hand. We know the best tips to ensure your business hits the ground running when it comes to financial stability. Call us today on 0161 327 2911.

About the Author:

Since 2013, Sophie has been an integral part of the Big Hand team. As a social butterfly, Sophie is mostly responsible for introducing new clients to the company. If you’re an avid networking, you’re most likely to meet Sophie at local events. Alongside attracting new business, she also assists with account management, and she manages payroll on behalf of clients. For fun, Sophie loves to keep fit running or playing korfball with her team. She is also in the middle of learning a new language and so her most recent challenge is attempting to read Harry Potter in Dutch.