In this article, we’ll talk about tips on how to choose the best bank for a business account in the UK.
If you’re an Amazon seller or are thinking of becoming an Amazon seller within the UK, you’re going to need a business bank account to support you and all of that money you’re going to be making.
Which ones do I recommend? Stay tuned, I’m going to be giving you four business banking accounts that I personally use and recommend that any online arbitrage seller can use within the UK. These allow you to manage your money effectively.
Today, we’re talking about business, and business bank accounts to store all that money you’re making, and today, I’m going to give you the top 4 business bank accounts that Amazon sellers I know use within their business.
I'll also tell you about the business bank accounts that I am currently using, I'm going to go through each one and talk about the banks, they're all pretty much similar, but there are a few nuances that you might want to know about. With this, I’ll also share some top tips at the end and other things you might want to be considering, also banks you might want to think about, but actually want to avoid. Stay tuned, we’ll talk about that now.
What you need to know before we start
Before I go through and teach you the multiple top banks you want to take note of, is that you are running a business, so the account won’t be personal. That isn’t to say that you can’t use a personal bank account, you can, but generally, what you want to do is you want to set this up right from day one. You’ll be using a business bank account.
A top tip that I find is really important is that you need to remove your business transactions from your personal transactions, create a separate account, even if you’re a sole trader or third-party seller, and never make your business transactions on your personal account. Quite simply, it makes your accounting and bookkeeping a nightmare to record; it makes you more problems in the long run.
The best bank for business accounts UK
It is one of what I consider a part of the big 5, one of the big-name high street banks within the UK. Now, what I will say is they have 18 months of free business banking. Normally, with a business bank account, you’re going to pay a fee. It’s free from personal banking, but in business bank accounts there is a fee involved in that.
NatWest gives you 18 months of free business banking, there is also an online accounting software called FreeAgent which is not made by NatWest but is something you may want to consider if you want to keep your costs low, which I haven’t personally tried, but it could be something that could help you progress in your online business adventure.
My sister uses Lloyd’s Bank, and she speaks very highly of them. She says that they have excellent customer service, are easy to get on the phone, and works well. So, one thing about Lloyd’s is that they offer you 12 months of free business banking. Other banks offer 18, but they offer you 12, not as much.
Potentially, you can consider jumping from one business bank to another, which is a way of taking advantage of those months of free business banking. But you may need to read the terms and conditions, because they may specify the minimum amount of time that your business has been open.
Me, personally, I just don't think it's worth the hassle. I'd rather spend the time finding more products to sell but some people might be interested in that keeping their costs low.
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This is the business bank account that I use. Things you need to consider, number one, they have something called the 1|2|3 business bank account, which you can do, but I’d probably just say go for the standard bank account which already has 18 months of free business banking. There are a few perks in acquiring the 1|2|3 business bank account, but ultimately they are perks that you would find little use for in the way we intend to use the business bank account. It entails also a higher fee, and less business banking, while also not providing 18 months of free banking.
I personally use Santander, it works really well for me. What I find great about Santander is that I found access to capital, what I mean by that is that I mean credit and overdrafts are very useful. My credit card has a 1% cashback and an overdraft with an interest rate of 5.5% which is really comparable to how much I use, which is really helpful.
This is a new contender in the banking arena, the one that a lot of people are talking about. I've heard about it across a lot of forums, a lot of Facebook groups, and even a lot of our own members use it.
Starling Bank is a new startup bank, they are regulated they have a banking license but they are one of these new starting startup banks which are all about creating great customer service, a great experience, and pretty much online only.
There is a fee that you need to pay when dealing with other high-street banks, but the major difference with Starling Bank is that it looks to be free forever. Another positive with a lot of the new startup banks is that they tend to really be up-to-date with technology.
Tips on how to choose the best bank for you
Out of the 4 banks, 3 of them are big, well-known high-street banks. Now, what does that mean? Well, to put it simply, if you want to take advantage of certain things, and be the first to get access to certain perks, the high-street banks have access to these corporate funds or government funds a lot easier, a lot quicker.
Customer service is integral when choosing the best bank to fit your needs, to be able to be helped by a customer service representative to deal with any issue you may find yourself in, at any working hour of the day will surely be an advantage in your banking needs. To find out such a thing, try to look for surveys done by these banks mainly through their customer base, and learn about their satisfaction rating on their customer service, this information will greatly help in making your decision as to what bank is best for you.
Create a standard business bank account with one of the top 4 we talked about, and only then think about an international monetary account like TransferWise and Revolut. These 2 banks, though, have had problems with creating an Amazon account. It is a better and much safer option to get a high-street bank’s business account as a key place to collect your money, then have a backup TransferWise account.
Which business bank account are you going to choose?
That is pretty much everything that I can share with you about the best business bank accounts that you can use in the UK to help your Amazon online business to grow. Hopefully, you’ve found this article useful, and has helped you in deciding the right bank for all of your banking business needs.