Why do banks offer incentives for opening a business bank account?

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I am a little bit suspicious of all the cashback offers and incentives these banks are throwing at my new limited company. Why would they do this? I am assuming they’ve got something to gain in all this.

Answers

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They simply want your custom, so they try to entice you with a cashback offer to catch your attentions. Most of the major High Street banks do this because it’s such a competitive market and most consumers are not faithful to a particular banking institution.

It’s nothing to be suspicious of, but you should also not be blinkered by incentives. Do your research, compare lots of different bank accounts, look at their respective introductory and future features - charges, fees, interest rates, business services, restrictions, etc.

Most business bank accounts are similar in many ways but they can each be better suited to different businesses and people. You just need to find the bank you are most comfortable and confident dealing with. Check out their customer ratings online. Have a look on comparison sites like KnowYourMoney and MoneySuperMarket to see what’s available. Review each of their short-term and long-term offerings, and don’t be afraid to switch accounts in the future if a better deal is offered somewhere else.

a year ago
 

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