Free business banking offered by Yorkshire and Clydesdale Banks

February 15, 2011

By Caroline Johnson

Small businesses are to be offered free banking if they switch their account to Yorkshire Bank.

The new business banking service is to be offered to start-ups and switching businesses with turnovers under £1 million or savings under £250,000. Any firms switching to Yorkshire Bank - or Clydesdale Bank, which is offering the same deal - will be given 18 months of free banking. Start-ups that decide to bank with either of the accounts will be given 24 months of free banking.

The launch of the accounts coincides with research they carried out that found 250,000 businesses are not happy with their current business account. Clydesdale and Yorkshire Banks Director for Small Business, Gary Lumby, said, "Small businesses are the lifeblood of our communities and economy. We see a real opportunity to offer a credible alternative; establishing local relationships to help small businesses flourish, with local knowledge and services that suit their needs."

He added that there is plenty of scope for increased competition within the business banking industry: "The evidence suggests that the small business market is underserved by the ‘big banks’. We see this as a great time to correct that and build on our already successful business banking approach."