Checking your Business Bank Charges are Correct

Staying in control of your bank charges and interest

Check your charges and interest regularly. This will help you control your cashflow and keep small business banking costs to a minimum.

The most common causes of overcharging

Look out for:

• Wrong interest rate being applied to a loan or overdraft
• Overdraft limit being applied incorrectly
• Applying the wrong tariff to transaction charges
• Double charges, e.g. deducting a loan set-up charge from both a cheque account and the loan facility

Avoid misunderstandings

• Read and understand all forms you sign, and be aware of what rights you are giving the bank
• Only give security you are prepared to lose
• Confirm every action or decision in writing. If your bank doesn't write to you, write to them.
• Ensure you both have the same interpretation of your instruction.

Always check your bank statement

• Keep past records - excess charges can mount up over the years
• Tabulate all charges you see in your bank statements
• Check for any irregularities, e.g. a charge that suddenly increases
• The British Bankers Association (BBA) publishes a guide on how to calculate bank charges and interest. See Understanding and checking bank charges and interest for small business.