Many of us have had the same bank account since we left school. We know we could get a better rate, and maybe cheaper service, elsewhere, but we just never get around to changing that account.

Inertia is an even worse problem with business accounts. You’re trying to manage staff, serve customers, keep suppliers in order - do you really have time to look around for a new bank? Does it make much difference?

The answer is yes, it does. Many businesses are paying far more than they need to in bank charges. A review sponsored by Alliance & Leicester Commercial Bank found that small and medium sized businesses could save over £3,500 a year by switching bank.

And the small business banking market has become much more competitive. Your choice used to be limited to the big four High Street banks, with an account held at a local branch. Now, more banks, including some ex-building societies, have entered the competition for business accounts. Some do not require you to have a relationship with a branch - the Co-op and Alliance & Leicester let you pay in through the Post Office as well as through bank branches.

Besides, some banks have more than one type of business account depending on your needs. Some are targeted, for instance, at businesses with a high percentage of cash business. Others may give special rates to members of particular organisations, such as the Federation of Small Businesses (Co-Op) or National Federation of Retail Newsagents (Alliance & Leicester Commercial Bank).

So, are you with the right bank? It’s actually not that easy to tell - some banks have very complex charging structures, and you need to consider the specific services you will require. For instance, some businesses may need commercial mortgages or asset leasing; for others, cash handling or a merchant facility (for debit and credit card payments) could well be the most important single factor. It is worth noting that a business can use one bank for ordinary business banking and another for merchant services, though this is not common.

Besides, the right account could vary depending on the level of transactions handled by the business. For instance, although many banks offer free cash handling up to a certain amount, both the level of free cash allowed per month and the charge per £100 above that amount vary. None the less, a simple spreadsheet should be enough to sort out which account would do best. In some cases, ‘free’ banking can actually turn out quite expensive in transaction charges - compared with a monthly fee but no charge for cash handling or unlimited transaction amounts.

In the same way, interest paid on current accounts may vary. And many ‘Free banking’ accounts specify a minimum level of cash to be held in the account - below which charges may apply. Again, each business will hold different levels of cash, so a certain amount of work needs to be done to assess which is the right account.

Be aware, also, of very high charges at some banks for unauthorised overdrafts - up to £30 a day or £30 per debit. A cash generative business might not need to worry, but any business that occasionally ends a month in deficit needs to take these into account in working out the annual charge total.

Your own preferences for managing the account are also important. Do you actually want a personal relationship with a bank manager and branch? Some businesses start off with a designated advisor and then find the person seems to change every six months - that is actually quite a major reason for switching. Are you happy to manage the account by phone or online? Do you need to have a branch nearby? Remember that some banks also use the Post Office network to handle transactions - which may be more convenient.

Many banks pride themselves on business advice, but ask yourself whether you will ever use it? And if you will, does the bank understand your particular sector? Would it have enough expertise to support you in, say, an acquisition of another business operation or property? If it does, how much is that expertise really worth to you?

In fact a survey carried out in 2005 by Alliance & Leicester Commercial Bank found that only seven percent of businesses ever turned to their bank for business advice. It is possible that a good relationship with your bank could be worth more than the difference between what you are paying and the cheapest account available, but you should at least work out what that difference is - and think hard about what you are getting for your money.

The internet has a number of resources available to help make the decision. The British Bankers’ Association, working with Moneyfacts, has set up an account finder enabling users to compare accounts and rates of interest at http://www.moneyfactsonline.co.uk/mfBAF/frontpage.asp.

Switchers used to grumble that their old banks took months to transfer accounts. Now, banks are obliged to give the new bank information on all regular payment instructions, such as direct debits and standing orders, within three working days. And they have to transfer the account within four.

Some banks, like Bank of Scotland, also have a dedicated ‘switch’ team and will make life easy for their customers. Many offer introductory offers for switchers, and terms have got better recently. While a year’s free banking used to be the norm, now many banks are offering 18 months free.

Businesses have traditionally used a single bank for all their financial needs. Indeed, it used to be common for a bank to require the main business account was held in house if it was going to lend to the business. Now, that is no longer the case, and businesses should look around for the best rates and most appropriate loan terms - just as consumers do for credit cards.

Besides, some banks do not offer a wide range of financing vehicles. A commercial mortgage could be a better option for businesses aiming to buy new premises than a commercial loan, but not all banks offer mortgages. It might even be better to approach the market through a mortgage broker rather than talking to banks direct - brokers have expertise and, more importantly, time to research all available options.

The same applies to deposit accounts. Your main bank may not offer the best terms, and if you are lucky enough to be generating excess cash, the best place for it could be in a deposit account with a more specialised commercial bank.

So what are the best accounts? Even given the caveat that there’s no single best account - that will depend on the business - there are some good guidelines for where to look. And, perhaps unsurprisingly, it is not the Big Four.

Moneyfacts’ business banking awards feature a number of names that are worth noting. Alliance & Leicester was shortlisted for several; so was the Co-Operative Bank; and Abbey Business was a runner-up for best current account. Close Brothers, Standard Life Bank, Secure Trust and Scottish Widows Bank - hardly known at all in the wider world - offered the most competitive business deposit accounts. Perhaps the most mainstream name was Bank of Scotland, 2006 winner of the best overall business bank.

Researching the best options will take some time, and can be intricate. But most businesses stand to save significant amounts if they switch bank.

The work does not stop there, though. Bank charges need to be checked; many businesses end up paying higher charges than they need to, where banks have made errors in calculating interest rates or amounts handled. Firms such as Anglia Business Associates (ABA) will carry out this work for a fee; ABA has recovered amounts over £10,000 for customers whose banks have overcharged them for years.

Bank accounts should also be reviewed yearly to ensure they are still competitive, and still delivering value.

You would not let an employee’s performance deteriorate without doing something about it. So do not let your bank manager get lazy, either.