Transferring business accounts between banks

Advantages and disadvantages of switching bank accounts

There are several ways you might benefit from switching your business bank account:

• A new account might offer more attractive interest rates or lower bank charges.
• If you're unhappy with your relationship with your current bank, a new one might understand your requirements better.
• Many bank accounts come with introductory offers, such as free banking for an initial period.
• If your current bank does not offer 24-hour telephone or internet banking services you might want to transfer your business to one which does. Making payments and transferring funds electronically could also help you reduce bank charges.

Remember that switching bank accounts can also have a number of disadvantages:

• If you have security or your accounts are complex, it can still take time and there's no guarantee of avoiding problems altogether.
• Banking with one institution for several years can sometimes help you demonstrate a certain level of financial stability. This can be important if you ever want a loan or are seeking other sources of finance.
• You will lose the benefits of the relationship you have built up with your current bank.
• You may need to assess the possible impact of switching on other arrangements you might have with the bank such as loans or credit cards.

If you are unhappy with the service you have received from your bank, in the first instance complain to your bank. If you remain unhappy, you can find out about complaining or resolving a dispute with your bank on the Financial Ombudsman website - Opens in a new window. However, please note that the ombudsman is only able to assist small businesses with an annual turnover of less than €2 million and fewer than 10 employees - known as 'micro enterprises'.

Subjects covered in this guide

• Introduction
• Advantages and disadvantages of switching bank accounts
• Comparing different bank accounts
• Negotiate improved terms with your existing bank
• Make your business attractive to other banks
• How to switch banks successfully
• Use different banks for different services

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