It is key that you save money on banking, so that you can reduce your business’ overheads. You may want to change your banking services provider, so you can decrease your expenses and increase expansion capital. Turner Little discusses the key considerations of switching business bank accounts.
Switching process
The common perception is that it is difficult to switch bank accounts, especially for businesses with serious financial commitments. However, switching is often not as hard as it seems. In a lot of cases, switching just involves allowing your new bank to open a new account and switch your direct debits.
Perfect timing
Does your existing account come with a bonus? Remember that bonuses last for a certain amount of time before dropping, often fairly considerably. It is wise to take advantage of your existing account’s bonus rate, before switching. Check its get-out clauses to see whether you can pursue this strategy.
Shop around
Explore your options before committing to a new provider. This way you can determine whether your old bank account gives you the best deal, or if there is a more cost-effective supplier out there. Use price comparison portals such as Money Super Market, to conduct this task. Here you can contrast each account’s interest rate (AER), monthly fee and overdraft rate, to determine value for money.
Consider the perks
Business bank account providers offer bolt-ons and perks to make their low-interest rate products more attractive. You may want to consider these bolt-ons and perks, to see which business bank provides the most value when switching. Some accounts, for example have contents and/or gadgets insurance, so you would save money, as you would not have to take out separate policies later on.
Transaction fees
Before switching, look at the account’s applicable transaction fees. If they are unnecessarily high, they could inflate your firm’s operating costs. When banks add transaction fees to good headline rates, for instance, they can make these rates less cost-effective long-term. Try to minimise transactions cost before switching. For example, ensure that your firm is paid by BACS or automated online transactions, so you can avoid incurring the admin fees posed by traditional payment means such as cheques.
Consult the experts
There are a range of other factors you should take into consideration before switching bank accounts. For example, should you move to an online provider, benefitting from their cheaper operating costs and convenient services? You should enlist expert aid, to find the right account for your business. As registered bank intermediaries, Turner Little can supply you with excellent UK banking advice.
Turner Little
Turner Little was founded in 1998 and it has since become a well-established UK based professional Company Registration Agent, Registered Bank Intermediaries and Business Consultants, as well as Trust provider. You can receive our monthly newsletter by signing up using the form below.