BANK ACCOUNTS

BANK ACCOUNTS FAQ

1. Which current account is right for me?
Finding the right current account depends on your situation, as each product has different features and benefits, which could help you stay out of debts or boost interest on your money. We can help you compare accounts benefits, features, and fees so that you choose the one that suits you best.
2. Can I switch bank accounts and how do I do that?
You can switch bank accounts and it is really simple:
– choose your new provider and tell your bank that you wish to move
– you will be asked to fill in some forms and provide two forms of ID
– your new provider will contact your current bank to start the process
– you will be asked which standing orders and direct debits you want to transfer over
– you select a date of the transfer

If you switch bank accounts, remember to inform your employer to make sure your salary will reach the right account.

3. How do overdrafts work?
There are two types of overdraft: authorised and unauthorised. The first one is a deficit agreed with your bank. You will be charged an interest if you use your overdraft.
An unauthorised overdraft is when you exceed your authorised overdraft limit or your credit limit. In this case the bank will charge you high interest rate and penalty fees.
4. What’s a packaged current account?
Packaged current accounts known also as premium accounts offer additional features to a normal account, e.g., a mobile phone or travel insurance, for which you pay a monthly fee.
5. Which current account is suitable for someone in debt?
We advise to look for an account that doesn’t charge much for using overdraft.
You may need to consider an option for those with bad credit. You will still be able to pay in and withdraw money, yet other facilities may be limited.
6. I run a business. Do I need a business account?
If you are self-employed you should ideally have a business account separate from your current account. This way you will be able to clearly identify the money that you make from your business, who it comes from and who you have to pay for services or goods.
If you run a limited company, you must open a business account to satisfy government officials. That will ensure accountability and transparency in your business dealings.
7. What type of account do I need?
Consider a standard cheque-based, current account with weekly bank statements, as that will give you control over your cash flow.
8. What should I look for in a business bank account?
The most important factors you should pay attention to are bank charges and useful services. Many banks offer a year free banking for new customers. We advise to compare what is on offer and go for the bank that values small businesses.
9. What name can appear on my business cheques?
If you are self-employed you can have your business account as your name and the name of your business, i.e., “Michael Brown T/A Translation Services”. That will allow your bank to accept cheques made out to either Michael Brown or Translation Services. As a Limited Company, you will only have the company name on the business cheques and the bank will only accept payments to that name.
10. How do I open a business account?
First you need to choose a bank and make an appointment with a manager or business adviser. At the meeting you should present:
– forms needed to open a business bank account. You can have them completed or the bank manager can help you with filling them in.
– a business plan (it can be an informal one)
– details on how you are funding your business
– who your partners are if any, and who should be able to sign cheques
– the Certificate of Incorporation if an account is for a limited company.