Business account...best one?

[kylieb]

Hi geeks,
I'm trying to decide where to go to open up a business account. Have never done this before so have no idea what i'm looking for or who is best to go with.
Will I need to put a certain amount in to open it? Do they charge you to have it?
If anyone could give me some advise then I would be really greatful :hug:
xxx

 

[Rapunzel]

Am sure abbey business banking is fee free worth a look

Business Banking : Santander Business

Cant really comment on business account as I just use a cash account at the minute as I am only self employed part time and only working a few hours I havent bothered opening one yet but am going to have to look into it as getting busier now

HTH

Deb
x

 

[orchid11]

Hi, I opened one with Natwest last year and so far no problems and its free banking for two years! I cant remember if i had to deposit a small amount to start it, may have been £50.
Hope that helps x

 

[Melanie89]

I have a foundation account with RBS. It was very quick to set up! took 5 mins over the phone! and is fee free. However you can not get a overdraft with this account which suits me fine but maybe not others x

 

[skymark]

I'm with the HSBC for business banking they were 18 months free banking at the start but they don't half charge for paying in cash after this time.

If your business is going to be a cash based one ask the different banks what the charge is for paying in cash (usually so many pence per pound) AFTER the free period is up.

Most banks have a free period for banking but obviously you hope to have a thriving business by the time thats up so the difference in charges afterwards will make a difference.

When setting up your account its also advisble to set up a business savings account at the same time. This you can use to put money away for your taxes each year so that you don't 1)spend them by accident or 2)have to keep working out what needs to stay in your current account all the time.

Also you have the think about the obvious, one that is convenient for you to get to and preferrably has branches in places that you frequent. You dont want to have to make a long round trip just to go to the bank.

 

[Ruth Mills]

I've seen some adverts for Alliance + Leicester business banking which sound good - as in being fee-free and paying a decent rate of interest - so they sound like they are worth a look...

 

[kimi1101]

I am with RBS, they are doing 2 years fee free at the moment. I hate Abbey with a passion, would do anything to go out of my way to put them off. My apparently business manager was mince, never contacted me when things weren't happening, promised me a guaranteed account then was rejected, sent extra docs away and she lost them, went on holiday for three weeks withtout telling me(which is fine everyone needs holidays but dont tell me to come in to see you on monday when you went off on the friday) and then was just totally useless when she came back. ignored my calls ect. when i called to complain about her, the people on the phone were equally usless. they wouldnt give me an account to put money in (i didnt want an overdraft) but a year before they gave me a mortgage. ????????? Idiots.

Anyway shop around cos you will find a few that are fee free for a reasonable amount of time and after that there is no reason why u can't move your account to another fee free account (much like people do with credit cards)

xxx

 

[Martin Duffy]

I'm with the HSBC for business banking they were 18 months free banking at the start but they don't half charge for paying in cash after this time.

You might want to talk to your bank manager. I'm with HSBC, and although I'm out of the free banking period I am now on free banking as I have reduced the frequency with which I've paid in cash & cheques (this is what costs the banks money to do).

 

[skymark]

You might want to talk to your bank manager. I'm with HSBC, and although I'm out of the free banking period I am now on free banking as I have reduced the frequency with which I've paid in cash & cheques (this is what costs the banks money to do).

Thanks for that. I'll have a word and see what they can do

 

[kylieb]

I'm with the HSBC for business banking they were 18 months free banking at the start but they don't half charge for paying in cash after this time.

If your business is going to be a cash based one ask the different banks what the charge is for paying in cash (usually so many pence per pound) AFTER the free period is up.

Most banks have a free period for banking but obviously you hope to have a thriving business by the time thats up so the difference in charges afterwards will make a difference.

When setting up your account its also advisble to set up a business savings account at the same time. This you can use to put money away for your taxes each year so that you don't 1)spend them by accident or 2)have to keep working out what needs to stay in your current account all the time.

Also you have the think about the obvious, one that is convenient for you to get to and preferrably has branches in places that you frequent. You dont want to have to make a long round trip just to go to the bank.

Thank you sooo much all of that info was so helpful! I didnt know about the business savings account either. Great idea esp for me who will see a pair of shoes and just spend what ever money i have left in my account :lol:
So why do they start charging you after a certain amount of time? Do people just change banks every time this happens to avoid the charges of paying in cash?
Would it be easier to just have a normal bank account? Or can I get into trouble for this.
Sorry for all the questions. This is all so new to me :hug: xxx

 

[kylieb]

I am with RBS, they are doing 2 years fee free at the moment. I hate Abbey with a passion, would do anything to go out of my way to put them off. My apparently business manager was mince, never contacted me when things weren't happening, promised me a guaranteed account then was rejected, sent extra docs away and she lost them, went on holiday for three weeks withtout telling me(which is fine everyone needs holidays but dont tell me to come in to see you on monday when you went off on the friday) and then was just totally useless when she came back. ignored my calls ect. when i called to complain about her, the people on the phone were equally usless. they wouldnt give me an account to put money in (i didnt want an overdraft) but a year before they gave me a mortgage. ????????? Idiots.

Anyway shop around cos you will find a few that are fee free for a reasonable amount of time and after that there is no reason why u can't move your account to another fee free account (much like people do with credit cards)

xxx

there is no reason why u can't move your account to another fee free account

Thank you...I was wondering if this was ok to do
God.....dont think i'll be going with Abbey!! Thank you for the warning x

 

[kylieb]

I've seen some adverts for Alliance + Leicester business banking which sound good - as in being fee-free and paying a decent rate of interest - so they sound like they are worth a look...

Ruth thank you. That sounds good. I'll check them out tomorrow! x

 

[Sparkle_Beauty_]

I opened a business account with Natwest not long ago, i have a personal account with them and have always found them good.
I didnt need to put any money in to open the account and they give you 2 years free banking. They we're really helpful and over loans/business credit cards at good rates

Hope this helps

 

[skymark]

Thank you sooo much all of that info was so helpful! I didnt know about the business savings account either. Great idea esp for me who will see a pair of shoes and just spend what ever money i have left in my account :lol:
So why do they start charging you after a certain amount of time? Do people just change banks every time this happens to avoid the charges of paying in cash?
Would it be easier to just have a normal bank account? Or can I get into trouble for this.
Sorry for all the questions. This is all so new to me :hug: xxx

Its standard practice for banks to charge for business transactions, the free period is what they offer to compete with each other for the business. a Bit like when credit card companies offer a 0% period to get people to sign up.

It is possible to change banks after that time but as Martin pointed out above it may be possible to talk to them and get a lighter deal on the charges.

There are benefits to having a business account. It is a different bunch of people that deal with you at the bank and ive found that the service level for businesses is a bit higher than for personal accounts. Also if you are just strting out many banks offer you business advice, starter packs, CD Roms and sometimes even free seminars with advice.

Personally I decided to go with a different bank altogether than my personal account as wanted to make sure that my business money was a separate entity in my mind (I need the discipline :green, although many people choose the same bank they usually bank with if they have a good relationship with them and only want to make one trip for all banking needs.

I would advise going into the branch to set up an account so that you can ask all of your questions and they can give you all of your options.

 

[jiff!22]

hi there.
if you're a member of the FSB (federation of small businesses) you can have free banking for life with the co-operative.
dont quote me on this, but i believe this is correct at time of going to print :green:
hope that helps.

 

[kylieb]

Thank you to all of you for your fab advice. You have all been so helpful. I have much more of an idea what it's all about now. I'll go and see some banks tomorrow Thank you geeks!!!
xxx

 

[Susie H]

I too had a nightmare time with Abby and switched to Nat west. I no longer have a business account, but if I have one in the future (hope I need one)
I wouldn't hesitate to use them again. When I had mine, I was offered 2 years fee free and if I agreed to go on a 2 day small business course they would extend it to 3 years. The course was free so I thought why not and it was very useful. It was run by the small business federation and among other things told you how to pick a book keeper or accountant that was right for your business. Well worth my time.