Best free business bank accounts 

Discover a free enterprise checking account for your enterprise sort

A enterprise checking account is a separate checking account out of your private one that you just keep only for your enterprise. These accounts are extra tailor-made to enterprise banking, so you possibly can combine accounting instruments, make invoices and categorise your bills. Some accounts are restricted to sure sorts of companies, so that you’ll have to test that your enterprise is eligible to have an account along with your chosen financial institution.

Do you want a enterprise checking account?

For those who’re a sole dealer or simply incomes additional by way of a facet hustle you then don’t have to have a specialist enterprise checking account. You can also make do with a typical (and free) private account.

You don’t have to make use of the identical one you financial institution with day-to-day. It’s typically greatest to separate your enterprise cash out of your private money, so it’s greatest to open a brand new account — it’s as much as you whether or not you follow the identical financial institution you utilize on your private banking or attempt a unique one. Conserving them separate will probably be helpful with regards to doing all of your tax return and understanding which purchases had been business-related.

However, if you’re a part of a Restricted Firm you then’ll must have a selected enterprise account.

Get the most effective of our cash saving content material each Thursday, straight to your inbox

+ Get a £24 Quidco bonus (new members solely). More details

What to look out for when looking for a enterprise checking account

When selecting a enterprise checking account there will probably be a couple of variations from common financial institution accounts that you just’ll wish to contemplate.

Charges

You’ll be extra prone to come throughout charges with these financial institution accounts. We’ve proven the free accounts above, though this refers as to if there’s a month-to-month price. The opposite charges you may come throughout embody:

• Preliminary set-up price
• Money deposit charges
• Money withdrawal charges
• Transaction charges
• Charges for funds in
• Charges for transfers out

It’s essential to think about what your enterprise is probably going going to wish. For instance, in the event you take a whole lot of money funds, you may be extra interested by getting free money deposits, whereas an organization that doesn’t deal with money a lot wouldn’t be bothered about money deposits.

Eligibility

Some accounts aren’t out there for all companies. In case you have a Restricted Legal responsibility Partnership, for instance, you’ll have fewer decisions with regards to enterprise financial institution accounts. Take a look at “eligible corporations” in additional particulars above for an summary. You’ll additionally wish to double-check with the financial institution instantly. Usually talking, sole merchants and restricted corporations ought to be eligible for the entire accounts above, though there are sometimes excluded enterprise varieties.

Money deposits

Lots of the enterprise financial institution accounts listed above are digital banks, which implies there isn’t a excessive avenue department so that you can deposit money into your account, nonetheless, most of them will allow you to deposit money on the Submit Workplace or utilizing PayPoint. Some have associations with high-street banks — for instance, Mettle is owned by NatWest so you possibly can pay in money at NatWest branches.

Integration

A number of enterprise financial institution accounts supply integration with accounting software program like Xero or Quickbooks. Or, they’ll supply the choice to export your transactions to present your accountant or add them into your chosen software program. For those who don’t have accounting software program, you in all probability wouldn’t want this, though it could be helpful sooner or later.

Some enterprise financial institution accounts include a free trial of accounting software program. Whereas that is worthwhile in the event you suppose you’ll want accounting software program, keep in mind to cancel it in the event you don’t suppose it’s one thing you’ll want.