Your guide to business bank account charges

It’s not easy to avoid business bank account charges completely. But by choosing your account wisely, you can keep costs down. 

How to keep business bank account charges low

When choosing a business bank account, it’s important to consider the associated costs – including both one-time charges and ongoing monthly fees. 

This guide focuses specifically on one-time charges, but you can get more information about ongoing fees in our guide to monthly business bank account charges. 

The one-off charges you need to keep an eye out for when choosing a business bank account include:

• Account set-up fees – some account providers have a charge for opening an account

• Credit card/debit card fees – you may have to pay a one-off fee to get a new card

• Administration or account changing fees – such as adding or removing a company director

You should also look out for ongoing costs such as monthly fees and withdrawal charges, which sometimes kick in after a 12-18 month introductory period.

What is a one-off set up fee?

A one-off set-up fee is a charge you pay when you open a new business bank account. Such fees used to be fairly standard. 

However, there are now lots of business bank accounts that you can open free of charge. The downside is that these accounts often impose other fees that you have to pay on an ongoing basis.

Will you be charged for withdrawals?

Yes, you frequently have to pay to make withdrawals from a business bank account – although some offer a certain number of free withdrawals each month. Certain accounts also enable you to avoid withdrawal charges by paying a monthly fee for your account.

How to find a free business bank account

It’s not easy to find a business bank account with no fees whatsoever – especially if you want additional services, such as invoicing or accounting software. But you can keep your business banking costs down by shopping around for an account that provides what your company needs at the lowest overall cost. 

It’s also important to ensure you don’t overlook other factors when reviewing different accounts, such as overdraft interest rates and online banking functionality.

You can compare accounts from leading providers, including their one-off fees, with our business bank account comparison tables.

Read more:

• Understanding foreign transaction fees

• Access for multiple directors 

• Setting up a standing order