Small businesses and SMEs are spending more than £2.3bn a year purely on transaction charges and fees for business banking facilities. Companies are also missing out on the chance to earn interest on business accounts yet will still incur fees, a new report has indicated. The YouGov survey found that almost one in four small businesses pay an average of £1,792 on business banking charges each year, as it has become apparent that ‘free banking’ is getting harder and harder to find. 52% of firms indicated they would consider changing accounts if they were able to receive a lower cost service.
The news came as consumer groups have become increasingly vocal about high banking charges, with both businesses and consumers anecdotally reporting that they pay close to £900 a year purely for going overdrawn without permission.
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