When running a business, your choice of bank account is more than just a place to store money—it’s the financial backbone of your operations. At Alvis & Company we often help our clients make informed decisions about their day-to-day banking options, and we thought it would be helpful to share a clear overview of what to consider when choosing the right business bank account.
Why Your Business Bank Account Matters
A dedicated business account helps you:
Keep personal and business finances separate (essential for bookkeeping and tax compliance)
Track income and expenses more efficiently
Present a more professional image to customers and suppliers
Access services tailored to business needs (such as overdrafts, merchant services, and credit facilities)
Main Types of Business Bank Accounts
Here are the most common day-to-day banking options for small to medium-sized businesses:
1. Traditional High Street Banks
These include well-known names like Barclays, Lloyds, NatWest, HSBC, and Santander. They offer:
In-person service and a wide branch network
Full-service accounts with options for overdrafts, business credit cards, and loans
Established reputation and trust
Things to consider: Fees can be higher, and account setup may take longer. Digital features vary by bank.
2. Challenger and Online-Only Banks
Names like Starling Bank, Monzo Business, Tide, and Revolut Business are gaining traction for their speed, simplicity, and low-cost models.
Fast online setup—often within a day
Competitive or no monthly fees. Fees are often transaction driven
Real-time notifications and easy integration with accounting software
Things to consider: Limited or no in-person support. Some may not offer full banking services (e.g., lending, cheque or cash handling).
3. Credit Unions and Community Banks
For those who value local connections and community-focused services, credit unions can be a good fit.
Lower fees and more personal service
Ethical lending and reinvestment in the community
Things to consider: May have more limited digital tools and fewer business-specific features.
What to Look for in a Business Bank Account
When choosing a bank for your day-to-day operations, consider:
Fees and charges: Monthly fees, transaction costs, ATM usage, Initial free banking period
Ease of use: Mobile app functionality, online banking tools
Customer service: Response times, live chat or telephone support
Integration: Compatibility with accounting software like Xero, QuickBooks, or Sage
Access to credit: Overdrafts, loans, and credit cards
How We Can Help
At Alvis & Company we’re here to support you with financial decisions that go beyond the books. Whether you’re just starting out, switching banks, or scaling up, we can:
Help compare account options
Assist with setup and integration into your accounting system
Ensure your banking choice supports your financial strategy
If you’re unsure which option suits your business best, feel free to get in touch with your adviser. We’re always happy to guide you through the decision.
Need help choosing the right business account? Contact us to schedule a consultation.