How to choose the best deal for my sole trader bank account
To get the best deal for your sole trader bank account, it’s worth shopping around. But before you look at everything on offer, you should pin down what you need from your business account.
You may want to ask yourself a few questions about how you bank, including:
- Do you prefer banking in person? You may want to pick a high street bank with a branch nearby.
- Do you like banking digitally? A challenger bank might offer the right solution for you.
- How many transfers or cash deposits do you usually make each month? If you make lots of transactions or cash deposits, you’ll want to look for an account where these are free or available for a low fee.
- Do you want extra features such as accounting software integration?
- Will you need an overdraft in future? Not all banking providers offer these, so it is a good idea to check in case you want to use one in future.
You should consider how often you will use your account, and which types of transactions you are likely to make most.
If you are self-employed part-time – say you work on your business in the evenings – you may not make many transactions in a month. In this case, you might want to look for a business account which charges per transaction, so you only pay for the features you actually use.
On the other hand, if you’re self-employed full-time, you may want to look for an account which does not charge for transfers or deposits, especially if you take cash. A business bank account that includes all features under a flat monthly rate could be more suited to your needs.
Once you know what you want from your sole trader account, you can compare what different providers offer and choose the account that best fits your needs.
» MORE: Do I need a business bank account?