Checking your Business Bank Charges are Correct

Understanding your bank charges and interest

What are bank charges?

  • Bank charges are the payment debited or deducted from your bank account to pay for the services your bank provides.

What services do banks normally charge for?

  • Charging policies vary from bank to bank
  • In general banks charge:
    • Interest at an agreed rate for loans and overdrafts
    • Fees for transactions that pass through your account, e.g. payments into and from your account, stopping cheques, returning cheques as unpaid due to insufficient funds, issuing bankers’ drafts
    • Fees for arranging and managing loans and overdrafts
  • Charges are usually deducted monthly or quarterly

How do I know how much I will be charged?

  • Your bank should send you a list of all the types of charges that apply to its main banking services
  • Your bank should notify you in advance of any charges arising as a result of activity in your account
  • If you have a question about charges, your bank should explain:
    • On what basis the charges have been made
    • The charging periods which apply
    • How they will publicise any changes made to their charges
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