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Business Current Accounts

A current account is a bank account which allows you to access a range of banking services such as receiving money e.g. from customers or intermediaries, paying bills and setting up direct debits and standing orders to make regular payments.

Unlike a personal current account you won’t necessarily get a cash card or debit card but you will need a cheque book and guarantee card. You can also arrange to have an overdraft facility.

Some business current accounts offer interest on credit balances, but this is usually at a fairly low rate compared to those available to individuals.

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Businesses, clubs, charities or societies who need access to the banking system.

If you don’t think you’ll ever go overdrawn, then the interest rate on the credit balance may be the most significant factor in deciding which account is best. If you are likely to, then go for an account with a low overdraft interest rate.

What Should You Look Out For?

Current accounts can vary in exactly what they offer, so look out for the following:

You need to make sure you’re eligible for your chosen account. Some accounts are only open to treasurers of clubs, and these tend to be cheaper to run than commercial business accounts

Interest – Credit interest rates tend to be fairly low, so it may be worth concentrating on the level of bank charges you’ll incur by using the service. These can vary quite a bit. Some accounts offer free transactions up to a certain level per month.

Overdraft fees and Interest – these can vary greatly between banks so its well worth shopping around if you think you’ll go overdrawn at some point.

Make sure you understand the key factors to consider when you’re arranging your bank account out, these will help you to be certain that you’re thinking about all the key questions to ask yourself.

Then compare business current accounts for the best deals around.

Related Links:

• Compare Business Bank Accounts
• Guide to Business Current Accounts