If you’re a small business, look for business accounts which are fee-free when comparing your options. There are many financial institutions which offer free business transaction accounts, although some of them do have conditions attached, such as the need to maintain a minimum balance or meet defined deposit requirements.
If you want to avoid bank fees eating into your profits, compare the free features offered by several banks and use them to help you choose which one is the best account for your business. It may be financially worthwhile to have more than one business transaction account and use them for different purposes so you can get the best of both worlds.
For example, if you deal with international transactions regularly, it’s likely to be worthwhile opening an account which doesn’t charge you much, or anything, to do so. However, a bank offering this option may charge higher over-the-counter fees for depositing cash, so if you need to bank your cash takings regularly, you may think about opening another business transaction account with a bank that offers a free 24/7 cash deposit safe. This way, you’ll get the lowest cost international transactions and avoid cash deposit fees.
There are several other factors which are important to compare as a small business, though, such as making sure your account has a transfer limit which suits your business’ needs and an overdraft facility if you’d like one for your business. Comparing as many different products on the market as possible will help you lock in the ideal account with more confidence.
