Small Business bank accounts

bridiej

Hi hellsbells

I guess it depends what type of account you have - mine is an all done via internet / post and the only charge is 40p for cheques.  ;D


Better add - that is cheques paid out, not in!

robu

???
Just starting S/B with Gnl tunover 20/30K

Any help with who's best @ moment / 2 years for setting up a Business Account on the high street. ie. cheap terms etc etc, need to make moneyyyyyyyy

Going as a sole trader.

memark

I run a small business and use Cater Allen Private Bank (wholly owned subsidiary of Abbey National with all deposits unconditionally guaranteed by them).

We have 2 a/cs with them to double the allowable transactions as they provide free banking subject to a limited number each month (but electronic transactions don't count towards the limit). They also have minimum deposit criteria.

You get cheque, pay-in books and even a gold debit card. There's no branches but a freephone number and postage paid envelopes for paying in.

We've been running the Reserve a/cs for over 3 years now and are very satisified with them. Interest rates are below.

Reserve Account - Interest Rates (% p.a.)
Balance % Gross % AER * % Net
£500,000+ 3.25 3.30 2.60
£100,000+ 2.85 2.89 2.28
£50,000 + 2.75 2.78 2.20
£25,000+ 2.65 2.68 2.12
£10,000+ 2.45 2.48 1.96
£5,000+ 1.15 1.16 0.92
Variable rates as at 20 November 2003
*AER = Annual Equivalent Rate
No interest paid on balances below £5,000

https://www.caterallen.co.uk

Since originally writing this, the interest rates have changed of course. Someone also asked how you bank cash and I thought at the time it was for a charge at the PO. I've since found out you can make deposits [glow=red,2,300]free [/glow]at RBS branches.

koru

If interest rate is your main priority, Alliance & Leicester are unbeatable. Their Business 30 day notice account pays 4.6% on balances over £10k.

They have free current accounts for start up businesses for 18 months.

catnap_2

Abbey bank are doing no charges, within certain limits, but seems generous enough.
I've been trading 3 yrs and similar turnover. I am with HSBC who to be fair did give me 2 yrs free banking at start, but £10 a month saved is £10 towards something else.
I have just applied before Xmas, but still waiing to hear.
Go to:
https://www.abbey.com/business

theGrinch

not Lloyds TSB.

they say one thing in the first meeting and then once you sign up they change it....cheque book, debit card, ID required and plus when you need cash you need to call the call centre to ask to withdraw your money.

Chippy_Minton

Yes, Alliance & Leicester do seem to have the highest interest rate. Their Business 30-Day Notice Account is 4.60% AER on £10,000+

and their Business Fixed Rate Bond is 4.70% AER on £10,000+ for 12 months (fixed until 31/3/06).

Has anyone found any higher rates for business deposits?

koru

Chippy_Minton wrote:

Has anyone found any higher rates for business deposits?

Have a look at standard life bank. Not quite as high rates, but 4.35% for direct access is pretty good. And more flexible terms. I'm not impressed with the service from A&L, so I'm thinking of switching.

Chippy_Minton

Koru, funny you should mention SLB as I'm moving from them to A&L just for the higher rates. Note that the SLB 4.35% you quote is for £1M+. Comparing their two instant access accounts (A&L Business Instant Reserve Account and SLB Business Premium Direct Access Account), A&L's rate is 4.44% compared to 3.95% for SLB (on balances up to £50K).

The one account where SLB beats A&L is their Business Fixed Rate Bond which is 4.95% (matures 7/07/2006) or 4.90% (matures 7/02/2006). (I didn't notice this when I looked about a month ago). The question is will interest rates rise in the next few months? Some experts think it quite likely.

No complaints with SLB, their internet banking is easy to operate. I just hope A&L are as good!

koru

You'll probably be happy with A&L. They have lost a £6000 cheque I banked, and are taking their time to find it, but I assume they will get there eventually.

My main problem is that their web banking will not work with Apple Macs, so I have to rely on their phone banking. This uses an 0870 number and you sit on hold for ages, with charges clocking up.

I'm willing to sacrifice a little interest, for the convenience of web banking.