Transferring business accounts between banks
Use different banks for different services
It's worth considering whether you could use different banks to fulfil different financial requirements.
You might, for instance, use a current account with one bank and a deposit account with another. At the same time you might get a loan from a third bank and have business credit cards from a fourth.
Advantages:
- You can shop around to find the best individual deals. It might be that a bank which offers competitive interest rates on current account balances in credit doesn't offer such attractive loan rates. Using different banks enables you to have the best of all worlds.
- You can build up links with a number of different banks or other financial providers. This could be useful if your relationship with the bank with which you hold your business current account breaks down for any reason.
Disadvantages:
- Keeping track of your financial affairs is likely to be more complicated and time-consuming.
- It becomes harder to build a strong relationship with any individual bank, as it won't have such a close understanding of your financial affairs.
If you decide that splitting your requirements between different banks would be useful for your business, you can find information on the various products on offer online.
Compare the various financial products available on the Moneyfacts website - Opens in a new window.
Subjects covered in this guide
- Introduction
- Advantages and disadvantages of switching bank accounts
- Comparing different bank accounts
- Negotiate improved terms with your existing bank
- Make your business attractive to other banks
- How to switch banks successfully
- Use different banks for different services
