Small Business bank accounts



  • SystemSystem Forumite, Community Admin
    177.9K Posts
    10,000 Posts Name Dropper
    Community Admin

    This is my first posting on the board.

    Started my business 6 years ago (Ltd company), initially I got an 18month free banking period, at the end of this time I rang up my bank manager (HSBC) and asked him if I could have free banking indefinitely - he agreed and I have had free banking ever since. I would add that I don't have any form of overdraft and I am no "trouble" to the bank.

    If you don't ask you don't get - & these sort of deals are available (although I am sure the banks don't like to publicise it).

    Admittedly when I got this arrangement with my bank manager I had a good relationship with him, he has since retired and I don't even know the name of the current manager.
  • aligirlaligirl Forumite
    13 Posts
    Very helpful inf here - especially on Abbey Nat and Cater Allen.

    From what Martin says the Co-op is the only ethical high street bank. Anyone know of any ethical internet ones? (with low/no business interest charges).

  • aligirlaligirl Forumite
    13 Posts
    What I really mean is non-high street ones, so not just intenet : telephone banking etc as well.
  • Savvy_SueSavvy_Sue Forumite
    44.5K Posts
    Part of the Furniture 10,000 Posts Name Dropper
    What I really mean is non-high street ones, so not just intenet : telephone banking etc as well.
    Smile is the Coop's internet bank and well thought of for personal accounts, don't know if they take business accounts but if you don't ask you won't find out.

    Other 'ethical' possibility for business include Unity Trust - possibly only for Trade Unions, Credit Unions, Charity & Voluntary Orgs - and Triodos

    We get a good service from Unity Trust at work (charity). Only problem is cashing cheques: we don't have a bank close at hand and you can't cash their cheques at the Post Office.
    Signature removed for peace of mind
  • Plumpud_3Plumpud_3 Forumite
    132 Posts
    As an ex-Inland Revenue employee :-[ I can confirm that if you are a sole trader you do not need a specific business account. It is not a legal requirement as you are the business. A limited company must have a business account as it is a separate entity.

    From dealing with taxpayers who have got into a pickle with their money, having a separate account that you only use for your business transactions makes life much easier. It also makes doing the accounts more straight forward too.

    Be aware that if you are chosen to be investigated by the Inland Revenue, they usually ask for all of your bank statements, private and business, to prepare a means test. Can you live on the money that is banked or is there some cash not banked or declared? It is virtually impossible to dupe them.

    Thanks for the tip on the Abbey National free banking. Will be following that up. My Husband and I set up a Limited Company 6 months ago. Chose Lloyds TSB as already bank with them, so far paying £5 pm for nothing. Phone service is completely useless. We were dealing with a Lady in the Branch, every time we phoned the call centre, they had never heard of her (4 different times!) and once put us through to a completely different branch to leave a message. Would not recommend at all. :o
  • bridiejbridiej Forumite
    5.8K Posts
    Why is it called Abbey Free if they charge? ???

    I just pop in now and then.... :)
  • Does seem to be a tad misleading
  • i business bank with barclays at the moment and have no complaints....but then again i am in my free banking period.

    the free banking expries in july so i rang my 'small business advisor' to investigate the possibility of indefinatly extending the free banking. seemed like a legitimate request as im a hassle free in credit customer. the guy almost laughed at me when i made the request and preceded to try and advise me on how i could cut my costs for banking (i dont know how you beat free!!!).

    my problem is i bank 150-200 cheques a month so under barclays that would cost £40-50 per month just to deposit cheques!!!!!

    has anyone any suggestions of some good deals that would help reduce my forthcoming costs???

    i know A+L do a flat rate £10/month for unlimited transactions, would that be my best bet?
  • bridiejbridiej Forumite
    5.8K Posts
    Bank of Scotland dont charge for depositing cheques - although you may be "too large" to qualify for their postal bank account, plus you may not want to post cheques to them, but just a thought.... 8)

    I just pop in now and then.... :)
  • Bridiej

    You need to talk to your RM (Relationship Manager)
    Bank of Scotland does charge as follows

    Cash 65p per £100.oo
    Cheques paid in 22p each
    Direct Debts 30p each
    Cheques paid out 47p each
    Switch 47p per transaction

    above details direct from my Bank of Scotland statement
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