Choosing the right current account for your business is one of the most important decisions you will make. It will determine how much money your business can access,
how quickly you can make payments, and how quickly you can receive payments. It will also affect the fees you pay and the range of services available to you. Selecting the right business current account can be a daunting task, but with this comprehensive guide, you can make an informed decision that best suits the needs of your business. We’ll look at the different types of accounts available, the features to consider, and the cost of different accounts so that you can make the best decision for your business.
Overview of current accounts
A current account is a type of bank account that allows you to store money and access it on a daily basis. It’s designed for businesses to store money from ongoing sources, such as customer invoices, and pay for regular business expenses. The current account is designed to be flexible, allowing you to make almost limitless withdrawals and deposits. Current accounts are often known as ‘business bank accounts’ and are a type of banking product designed specifically for businesses. Even though they’re designed for businesses, many individuals can also open a current account. A current account is a type of banking account that grants a business access to funds through a single account, payment card, and a customer reference number.
Types of current accounts
There are a number of different current account providers and types of current accounts available. This means that you are likely to find several accounts that meet the needs of your business and fit within your budget. While you might be tempted to select the account with the highest interest rate and lowest fees, you need to find the right balance between cost and features. There are four main types of current account: –
Basic Current Account – a core bank account with low or no fees and a low interest rate, designed for businesses with low to moderate transactions.
Business Current Account – a core bank account with low or no fees and a moderate interest rate, designed for businesses with moderate to high transactions.
Business Interest Current Account – a core bank account with moderate fees and a moderate interest rate, designed for businesses with moderate to high transaction volumes and a regular flow of deposits.
Business Premier Current Account – a premier bank account with high fees and a high interest rate, designed for businesses with high transaction volumes and regular flow of deposits.