Transferring business accounts between banks

Comparing different bank accounts

Before comparing bank accounts, assess your current deal - from interest rates, overdraft charges and monthly fees to any charges you pay for things such as statements, cheques and cash payments into the account. Also assess the charges the bank may apply if you exceed your overdraft limit - although it's always sensible to arrange a suitable limit with the bank.

Then consider what features you really need from your business account. A competitive overdraft rate is only worthwhile if you're frequently in the red, for instance. There are a number of areas to consider:

• The normal state of the account. If you're in credit, it's worth looking for an account with a good rate of interest on credit balances. If not, you should probably look for a deal where the overdraft rate is competitive.
• Consider whether you are comfortable using telephone or internet banking or would prefer or need to visit your branch. Do you want the flexibility of having both options?
• Would you benefit from being able to consult a small-business adviser, which is a service offered by many banks?

The major clearing banks have undertaken to publish information about their bank charges and interest rates on current accounts to make it easier to compare prices. The Banking Conduct of Business Sourcebook (BCOBS) - which replaced the Business Banking Code on 1 November 2009 - gives details of the standards that should be adopted by banks when you switch from one to another. Find BCOBS on the Financial Services Authority website - Opens in a new window and download industry guidance about BCOBS from the British Banker's Association (BBA) website (PDF, 539K) - Opens in a new window.

Look at sources of comparative information. Compare banks using the business account finder on the BBA website - Opens in a new window.

Remember, if you're leaving a long-term relationship with your current bank, your new account should offer significant and measurable benefits.

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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