Want a five-star business account? Co-op and RBS lead the pack
Finding the best account for your business can be a minefield. There’s a lot to choose from, but they have a bewildering array of features and fees, making them hard to compare.
At the same time, choosing the business account can be one of your most important banking decisions, as it can save you money or provide you with a financial lifeline if you need it.
But personal finance site Moneyfacts has done the hard work for you in choosing its featured business and community accounts.
Best banking for business: Moneyfacts chooses the stars of business current accounts
To compile the annual list of corporate current account star ratings, Moneyfacts looked at a wide range of criteria, including account management, overdraft availability, introductory offers, credit transaction fees, fees. transfer and flexibility.
Scores were calculated based on a numerical scoring system, with values ââassigned to each relevant characteristic of the account.
Each of the scores has been weighted according to the likely benefit of each feature to a business.
Providers had the opportunity to score extra points if the fees were “exceptionally lower” than their competitors, while more emphasis was placed on features that are not common in the market.
If you’re looking for a new account, the list of winners might help point you in the right direction. Click on the links for more account information.
In the corporate accounts category, The Co-operative Bank came out on top. He has three accounts that have been rated “five stars” on the personal finance website. They are: Directplus community; Directplus cooperatives; and FSB Business Banking.
Community Directplus is available to charities, community groups and voluntary organizations, while Co-operatives Directplus is reserved for co-operatives, with a turnover of up to Â£ 1million, who deposit up to 100,000 pounds sterling in cash and up to 5,000 checks each. year.
According to Co-op, both are an “ethical way to bank for free” and will pay no fees, as long as you work within agreed limits. Charges apply for exceeding these limits and for any special services such as CHAPS payments and blocked checks. It can be managed online, over the phone, or at your local post office. The account comes with a business debit card and you’ll earn interest on balances of Â£ 25,000 or more.
Moneyfacts noted that the FSB Business Banking account offers âa full range of benefits that will meet the needs of most businessesâ.
Available only to members of the Federation of Small Businesses, the account offers free overdraft subject to request and status and free âdailyâ banking services (except for non-standard transactions). It’s free to pay up to Â£ 2,000 in cash each month, but beyond that you’ll pay 75 pence for every Â£ 100.
Brightest Star: Co-op Bank has seen three of its corporate accounts awarded the highest five-star rating
Nonprofits with a turnover of less than Â£ 100,000 benefit from free deposits and withdrawals with the Community Account.
Strong performance: a mix of big four banks and smaller banks entered the four star category
If you run a for-profit business, have been trading for less than 12 months and have a turnover of less than Â£ 1million, RBS classifies you as a start-up and you can apply for the account. business – Standard rate.
This means that you get two years of free business banking services and you can use all daily services in the account for free. Additional services, such as foreign currency withdrawals, will incur a fee, as will unsettled borrowing.
Once the two years have passed, your account will convert to the standard rate, which charges most services, including a fee of 37p on direct debits paid to the account and 66p for every Â£ 100 in cash paid.
The Santander business current account also secured a place in the five-star category. Offered free to start-ups for up to 18 months, Moneyfacts said the account “provides a clearly priced authorized overdraft structure.”
After that, businesses have to pay to use the account, which starts at Â£ 7.50 per month.
Moneyfacts added that the account “allowed businesses to take control of their monthly fees and at the same time earn interest on account balances.”
Meanwhile, Unity Trust Bank and Bank of Ireland UK both have two account offerings with five stars.
In fact, all of the major vendors appear in one form or another, with Barclays, HSBC, NatWest, and Santander making the five-star list.
And a number of big names reappear in the four-star category, such as Caf Bank, Carter Allen Private Bank, Cumberland Building Society, Clydesdale Bank and Danske Bank.
Lee Tillcock, Managing Editor of Business Moneyfacts, said: âA business checking account is an important building block for any business enterprise and the products currently on offer have evolved considerably in recent years.
âGiven the impressive array of features available to meet the needs of modern businesses, there are many options to consider – something the industry and the regulator want to promote.
What is a community account?
Community accounts are designed for nonprofit organizations such as clubs, corporations, charities, and places of worship.
A club or society is defined by the Charities Commission as a means by which people âshare a common interest and create a formal structure through which they can pursue itâ.
The advantage of a community account is that it will generally offer cheaper and ideally simpler banking services than regular business accounts.
For example, HSBC offers free business banking services to community accounts with annual turnover of less than Â£ 100,000. During this time, Co-op will give you interest on credit balances of Â£ 25,000 or more with their Directplus account, as well as the ability to apply for project funding from their customer donation fund.
Some accounts are limited to nonprofits with an annual turnover of less than a certain amount – for example, that of Santander are designed for companies with turnover of less than Â£ 250,000 per year.
âMoneyfacts’ annual corporate current accounts star rating provides businesses with valuable insight into the quality of functionality on offer before assessing individual costs. “
When it comes to community accounts, HSBC and Danske Bank lead the pack with two funds each earning five stars.
HSBC took home honors for its Community account for clubs, corporations and charities and also for his Schools and Colleges Account. Danske Bank was recognized for its Charity account and Community Account.
Caring for the community: Danske Bank and HSBC both have top-rated accounts
THE BEST BANK ACCOUNTS FOR SMALL START-UP COMPANIES
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