Which business bank account is right for me?
30 October 2019
A business bank account helps a business owner keep business transactions separate from personal finances. These types of accounts help business owners keep track of their expenses, as well as managing cash flow.
Do I need a separate bank account for my business?
This depends completely on the structure of your business. Most banks do not allow personal current accounts to be used for business purposes, this is why we would recommend a separate account for your business so that you can manage your business finances more effectively.
Benefits of a business current account
If you have a Business Current Account you will have benefits such as being able to apply for an overdraft to support business cashflow and BACS facility. There are many other advantages to opening a business bank account, which include:
- Being able to process salary payments.
- Receiving credit and debit card payments.
- Organising business records.
- Being able to accurately track transactions.
Are there different types of business current accounts?
Here at The Co-operative Bank, we have a number of Business Current Account options that are tailor made to suit the requirements of your business. These products include:
- Business Directplus Current Account
- FSB Business Current Account
- Community Directplus Current Account
- Business Current Account – Cash Tariff
- Business Current Account - Standard Tariff
What account is best for my business?
Whether you are a business start-up, or operate a large enterprise, choosing the right business account is one of the key steps in managing your business.
There are many options when it comes to business bank accounts, which means it can easily get confusing. Factors such as type of business, turnover and cash flow will determine what account is best for you.
Business Directplus Account
In the first few months of trading, it is important to keep costs low and minimise any unnecessary spending. Having a straightforward business bank account can help you keep track of all your income and outgoings.
If you are in the early stages of setting up your first business, or have an established business in your market, we would recommend you open a Business Current Account that meets the needs of your business.
We offer 30 months free everyday business banking* with our Business Directplus Account for new Co-operative Bank business customers.
For more information about this current account, visit our dedicated Business Directplus Current Account page.
* Free everyday business banking means: No charges for all automated credits and cash withdrawals. Deposit £2,000 in cash and 100 cheques per month for free. If you maintain a credit balance of £1,000 or more there is no monthly service charge, and all automated debits including; standing orders, Direct Debits, Faster Payments, debit card payments and writing up to 30 cheques per month are free. Charges apply for exceeding these limits. Please refer to the tariff online for full details. Subject to status and eligibility.
FSB Business Current Account
The Co-operative Bank offers members of the Federation of Small Businesses (FSB) exclusive benefits with our FSB Business Current Account, created with small businesses in mind.The FSB Business Current Account offers a range of benefits, including:
- Free everyday business banking.
- Pay in cheques and up to £2,000 cash per month for free. If you need to deposit more, you pay 75p per £100 extra.
- Annual loyalty bonus of £25 paid to FSB members who maintain an active account (terms and conditions apply).
- A Business Charge Card without a monthly fee. Subject to application, status and our lending policy. Charges may apply.
This account would be suitable for start-ups, established businesses or the self-employed. For further information about the FSB Business Current Account this can be found on our website.
Community Directplus Current Account
If you are a registered charity, Co-operative, credit union or community interest company the Community Directplus Current Account offers an ethical way to bank for free*.
The Co-operative Bank are proud to be the winner of the 2019 'Best Charity Banking Provider' awarded by Business Moneyfacts, for the fourth consecutive year.
We are the first UK high street bank to introduce a customer-led Ethical policy with over 320,000 customer responses since 1992.
*Subject to transaction limits. The Co-operative Bank reserves the right to review the account tariff for customers whose credit turnover exceeds £1m per annum, who deposit more than £100,000 cash per annum, or who deposit more than 5,000 cheques per annum.
Business Current Account - Cash Tariff
Our Business Current Account – Cash Tariff, provides businesses with a high cash turnover an efficient and convenient way to deposit their revenues. With this account, we offer one of the lowest cash deposit charges on the market with a simple charging structure.
Business Current Account - Standard Tariff
Our Business Current Account - Standard Tariff is ideal for businesses that want an account offering basic management of your everyday business banking requirements.
It you would like to find out more information about this account, visit our Standard Tariff information page.
How do I open a business bank account?
You can open a business account online using our business hub page. In order to open a business bank account with us you have to meet the following criteria:
- Be aged 18 or over.
- Free from County Court Judgements (CCJs), bankruptcy and IVAs over the last 6 years.
- Free from missed payments on any personal credit obligations in the last 6 months.
- A UK resident with a business address in the UK.
When you open a business account online, you may be asked to provide more information about yourself, the business or any stakeholders as part of the application process.
If you want to know more information about opening a Business Current Account, take a look at this UK Finance guide that will provide information about setting up a new account.
How we can help
When opening any Business Current Account with us, you must ensure that you have read our Business Account terms and conditions, and important documents stated on our website. We also recommend you save copies of all these documents for your future reference.
If you want to know more information about Business Banking and the products and services we offer please visit our dedicated web page here.