Choosing a business bank account? Use our 10-point checklist to compare fees, features and services, plus five business banking providers to consider

Business bank accounts come with very different fees, features and services. While some offer free everyday banking, others charge a monthly fee for the use of additional tools, support or transaction allowances.

The cheapest monthly account price isn’t necessarily the best value option for your business. If you regularly pay in cash, make international transfers or process lots of payments, additional charges can end up costing a lot.

Before you apply, use our business bank account checklist to work out what you need and compare your options. We also look at five business bank accounts you can open today, including:

Business bank account checklist

Here are 10 questions to ask before choosing a business bank account.

1. Is there a monthly fee?

Some business accounts are free, while others charge a monthly subscription. Check whether any free banking offer is permanent or just an introductory promotion, and what you get for a paid plan.

2. How much will transactions cost?

Look beyond the headline monthly fee. Are bank transfers, Direct Debits and standing orders free? If there’s a monthly transaction allowance, how much will you pay when you exceed it? Even small charges can add up if you make lots of payments.

3. Can you pay in cash and cheques?

If you run a shop, café or another cash-handling business, check how and where you can deposit your takings. Some providers let you pay in cash at Post Office branches or PayPoint locations, but charges can vary considerably. Also check that you can deposit cheques.

4. What are the charges for international payments?

If you buy from overseas suppliers or sell to international customers, compare foreign exchange fees, exchange rate margins and transfer charges. You could save money with an account that lets you hold and receive payments in multiple currencies.

5. Does it work with your accounting software?

An account that connects to Xero, Sage or your existing accounting software could save you hours of manual bookkeeping. Some providers also offer built-in invoicing, expense categorisation, tax estimates and receipt capture.

6. How can you access and manage your account?

Can you bank through an app, online, over the phone or in a branch? If employees need access, it’s useful to be able to issue additional debit cards, set spending limits and give different team members permission to make or approve payments.

7. Can you access an overdraft or business finance?

An overdraft could help you manage short-term cash flow gaps, but not all providers offer one. If you plan to rely on borrowing to support your growth, compare options, eligibility requirements, interest rates and fees.

8. How is your money protected?

Eligible deposits with UK-authorised banks are generally protected by the Financial Services Compensation Scheme (FSCS), up to £120,000 per eligible depositor, per authorised institution. Accounts provided by electronic money institutions use safeguarding arrangements instead and don’t have FSCS deposit protection.

9. What support will you get?

If something goes wrong, you want to be able to speak to someone quickly. Check whether the provider offers telephone support, in-app messaging or access to a business banking specialist. Dedicated relationship managers are usually only offered on the higher-tier plans.

10. Will the account still suit you as your business grows?

You might only need a basic account today, but when you start growing your team, trading internationally or processing more payments, you might need more advanced features and allowances. Check whether you can upgrade your plan or add services without having to move your banking elsewhere.

Can you switch business bank accounts?

If you’re unhappy with your current provider, you don’t have to stick with them.

The free Current Account Switch Service can move your payments and balance to a new participating bank in seven working days. It’s available to your business if it has fewer than 50 employees and annual turnover of no more than £6.5 million.

Not all providers participate, so check before applying.

Ultimately, the right account comes down to how you use it. Work out roughly how many payments you make each month, how much cash you handle and which additional services you’d actually use. Then compare the total monthly cost rather than simply choosing the account with the lowest fees.

For more information about the application process, read our guide to opening a business bank account.

Five business bank accounts to consider

Once you’ve worked out what you need from a business bank account, it’s time to compare your options. Here are five providers offering different features, services and pricing structures.