Which bank is best for my business?
To figure out which bank is best for your business, you need to consider your business needs. Is it important to find a bank that offers you an account with a good interest rate, or do you want to make sure that there’s a usable overdraft? What about a suitable transaction limit? If you do a lot of business abroad, you might want to consider a bank that offers you good exchange rates.
Once you’ve figured out your non-negotiables, you can think about whether a digital, or a high street bank works best.
- Can you go digital?
Digital banks tend to provide lower, or fee-free banking for businesses. These could be ideal if you’re starting a side hustle, you want to keep start-up or running costs low, or if you’re self-employed and your finances aren’t too complicated. - Do you need branch access?
High street banks are ideal if you want to be able to do your banking in person, get direct support from your bank in relation to running your business, or you want to be able to make deposits of cash or cheques.
Co-op Small Business Bank Account: Free invoicing app and discounted POS tech
The Co-op Small Business Bank Account is one high street account that don’t charge monthly fees. Automated credits, debits, debit card purchases, ATM withdrawals and manual credits are also free.
There’s a whole host of bonuses and extras you can get through the Small Business Bank Account, including access to Go Get Paid, an application which sends invoices and payment reminders to customers and links to your accounting software, and you can get a Clover POS for £1 a month for 12 months to streamline your sales.
HSBC Small Business Banking Account: Free Business Growth Support
You’ll also get to skip out on monthly fees with the HSBC Small Business Banking Account. This account includes telephone banking, a cheque book on request, and mobile cheque deposit.
With the Small Business Banking Account from HSBC, organisations can also access HSBC’s Small Business Growth Programme. This programme is a collection of business training courses including content from Microsoft, WIRED and Google to help you grow your business. Topics include marketing, understanding AI, financial planning, and business security, and they also run specific webinars and events throughout the year.
Monzo Business Bank Account: Sole traders can file tax directly from Monzo to HMRC
Monzo is a digital bank, and as such isn’t a suitable option if you want to be able to bank in branches. However, for those who are happy to bank online, the Monzo Business Bank Account has zero monthly fees, connects to a range of accounting tools and has a 1.30% AER interest rate.
If you’re a sole trader, and you’re concerned about Making Tax Digital, Monzo’s Business Bank Account makes it incredibly easy. Those who are self-employed can file their taxes straight from Monzo to HMRC, meaning there’s minimal fuss and no need to purchase extra accounting software.
