The Best Bank Account for Rental Income
Introduction
Do you have a rental property? If so, you'll want to make sure you have the best bank account for rental income. Many banks offer special accounts for people with rental income. These accounts offer features like free cheques and no minimum balance requirements. They also often come with a higher interest rate than regular checking accounts. So, if you're looking for a bank account that is specifically designed for rental income, be sure to check out the options available at your local bank!
Are there bank accounts designed specifically for rental income?
Yes, there are bank accounts designed specifically for rental income. In fact, many banks offer special accounts for landlords. These accounts offer features like free checks and no minimum balance requirements. They also often come with a higher interest rate than regular checking accounts. So, if you're looking for a traditional bank account that is specifically designed for rental income, be sure to take a wander down to your local bank!
When shopping for a bank account, what are some features to look for?
When shopping for a bank account, what are some features to look for?
Some features to look for when shopping for a bank account include free checks, no minimum balance requirements, and a higher interest rate. These features are often found in accounts specifically designed for rental income.
How do you know if your bank offers this type of account?
The first way is to check with the bank individually. However, the one you'll want will often fall under the category of general business account and so you may have to look through the features of each, or search some reviews like this one to find out what is the best bank account for rental income. We'll try and walk you through some of the considerations so that you're not just blindly choosing a provider but thinking about what kinds of criteria to look for - accounts and coverage vary across jurisdictions and people are often looking from different countries.
What are the benefits of using a bank account specifically designed for rental income?
Firstly, it's always a good idea to separate personal and business finances. It might seem simpler at the outset to manage the two in one place at one or even a couple of properties, but when you start looking back through transactions, pay your taxes or add to these, it quickly becomes quite difficult to differentiate. You may also be breaking the terms of your personal current account - many have clauses in the fine print which preclude you from using them for business purposes, even as a sole trader.
The corollary of this is that business bank accounts come with more restrictions and higher fees, meaning you need to be careful about which you choose when looking for the best bank account for rental income. As many Strabo users will know, there are also difficulties when taking rent payments internationally. Check the jurisdiction restrictions as well as the daily / weekly payment limits before committing. Landlord balances may exceed the FSCS covered deposit limit which currently stands at £85,000, so you should also consider using a larger institution to mitigate this risk.
If you're paid rent in cash, you'll need a bank which offers easy pay in - Starling and Monzo both have good value props here, or the Co Op bank if you're looking for an incumbent. Often they'll allow you to bring cash to partnering shops and small businesses and pay them in here.
How can you find the best bank account for rental income or specifically your needs?
Looking through some of the above is a good place to start. Broadly, you can break this down into the following categories:
- Monthly Fees
- Transaction Costs
- Payment Restrictions
- Security
- Usability
Overall, we think the winner taking into account all of the above is Starling. Aside from strong offerings in the above, it was also voted Best British Business Bank last year. However, for those averse to using newer banks and more keen on an incumbent for peace of mind, Lloyds TSB and the Co-op also scored highly in the UK.
Conclusion
What should you do if you have questions about your bank account options?
If you're still not sure which is the best bank account for rental income, ask a financial advisor. They can help you figure out which account will offer the best interest rate and fee structure for your needs. And, if you have any questions about your current bank account, be sure to ask your bank for more information. They can help you understand the fees and terms of your account so that you can make the best decision for your financial future! Note that any bank that holds restrictions on switching provider over you is probably best avoiding. You should conduct due research before committing. Finally, all major business bank providers are available to view and manage through the Strabo portal. Our real estate tracking function allows you to track the properties themselves too, including live valuations and analytics on yield and performance. If you haven't yet, sign up and check it out!
