Choose who to bank with

The bank you choose for your small business banking doesn't have to be the same one you use for your private banking.  Most banks offer free business banking or interest on the balance in your business bank account, but there's other things to consider too:

• Recommendations or warnings(!) from other small business owners
• The business banking services on offer
• What charges you'll incur for each service
• Any extra services the bank offers to support small businesses
• The bank’s ethical stance and investment policies

But remember banks are not a charity they're a business, and like all businesses they'll choose how to balance their risk to achieve the highest profit, or the least loss!

What business banking services you might need

Banks have different small business tariffs depending on which services you use so have a good long think about exactly what you need the business bank account for:

• A loan or overdraft facilities
• Counter services (or will most transactions be done electronically)
• Depositing large amounts of cash
• Making or receiving payments in other currencies
• Daily transactions or just a few high value ones once or twice per month
• Setting up direct debits or standing orders

Different types of business bank account

• Business current account for day-to-day transactions
• Instant access business deposit account for any surplus you don’t need day-to-day
• High interest rate business deposit account for funds you won’t need at short notice
• Foreign currency business bank account if you're going to be trading overseas or in foreign currency
• Business loan account for any business loans you may take out
• Merchant Payment account for taking credit and debit card payments.  More about taking card payments

As your business develops and grows your business banking requirements will change, so keep an eye on the bank charges to make sure you've still got the best deal for you.