Banking - The Cheap and Cheerful Guide

Yesterday we looked at advice for new businesses looking for bank accounts - today though we’ve decided to look at how we can keep charges down once you are comfortably running with your business account.

Through a recession, a bank’s charges and costs can be ridiculously tough to meet so there’s every reason why you should be looking at how you can keep your business charges down without much fuss…

Free Is The Cheapest!

Although many banks will fancy charging you to use their business services, a lot of them have now introduced “free” banking for business accounts.

These “free” accounts will usually involve banking charges to run the account being waived for a specified time, usually 18 months or two years - however some banks offer “free” banking for life, but they might not necessarily fulfil your banking needs.  Shop around…

Be “In-The-Know”…

Although it might not sound like the most exciting way to spend your bank holiday Monday, it is usually a good idea to sift through the bank’s Terms & Conditions pamphlet to see what you are specifically bound to fork out due to whatever circumstances.  Be aware so you can steer clear of such charges where possible!

Push It!

If there is a limit enforced on your account then make sure you push it to the limit!  If you are only allowed to pay in 50 cheques a month for example then make sure you pay in 50 cheques and get your money’s worth.

If that means you need to keep note of the amount of cheques you are paying in on a monthly basis then so be it - you’ll be getting the most out of the service which is the aim of every small business that wants to save a couple of pennies…

Cheques

Cheques are becoming less and less popular as a form of payment, especially for small businesses - the reason is that they can often bounce leaving you without your money and often with an additional charge from your bank for the benefit.

Instead turn to another form of payment to make sure you don’t fall down the rubber cheque trap that can hurt the cash flow of your business.

Limit Yourself

Although banks are there to keep your money safe you should think about paying in a little less frequently.  Every time you pay money into your bank account the bank is losing a little bit of money being in a position to have to pay for the tellers, etc…

Instead of paying in at every opportunity try and negotiate a deal with your bank so you can pay in less but get a better account in return - you’ll find that you should be able to benefit from a little conversation with your bank.

Cheap or Tacky?

Do you feel cheap for trying to control your bank charges and costs?  Do you think such control is a necessity through such a tough economic climate?  Leave us a comment…

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