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Start-Up Guide :: Contractor banking, financial services

Published on Nov 29, 2007 |

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Business banking

If you are an IT contractor working though a limited company, you will need to set up a business bank account.

Although many contractors may prefer just to use their personal bankers for this purpose, it is worth looking round for the best deals.

Although business interest rates have sunk to record lows as a result of the 'credit crunch', there are still some competitive deals out there. You should also seek out a business bank account which is 'free' for at least a year or two.

Sadly, and unsurprisingly, it is often hard to find a bank which offers both competitive interest rates and no transaction fees.

Read more in our guide to choosing an IT contractor bank account.

Financial services for contractors

Now that the self employed are are larger part of the UK economy than ever, the bias we used to see against IT contractors in the mortgage market a decade ago, has gone.

IT contractors now have good access to a vast range of financial services, although they may still find that they are sometimes penalised by some product offerings due to the financial 'risk' they take on when joining the contracting world.

Now that the self certification mortgage market has more or less evaporated, many contractors will have to either find large deposits, or present three years company accounts if they want to access competitive mortgage deals. You can read more in our dedicated IT contractor mortgage article.

In addition, other key products such as Contractor Pensions, Critical Illness Cover, Life Cover and Income Protection are all available to contractors at very competitive rates.

You can read an overview of financial services for IT contractors here.