Small Business bank accounts

1jim

Comes on guys (and gals)
which in your opinion is best bank for business as am in position of choosing between abbey and alliance and leicester
Thanks
jim

Savvy_Sue

1jim wrote:

which in your opinion is best bank for business as am in position of choosing between abbey and alliance and leicester

that's an impossible question for anyone but you to answer. Even if one person reading this thread has used both and is therefore in a position to comment on both, banks offer different services, and charge different rates. Only you know what your business needs - the facility to pay in cash; internet banking; credit card payment facilities etc etc etc. You need to check - and from reading previous comments double check - what each bank charges for what your business needs. If there's not a lot in it, go for the bank which is more convenient if you ever need to do business face to face, or for the bank which you have a better 'gut feeling' about, or for the one who seems most efficient in answering your queries. Even if there is a lot in it financially, you might choose to go with the other because they answer your queries in 3 hours rather than 3 weeks. I think I would!

FWIW, I've used A&L and always been very happy with their service as a 'Clubs and Societies' account holder. I like the fact that you can pay cash in at the Post Office, which was something I needed to do regularly, and it was a lot more convenient than using a bank. Other people have been less impressed, and I've never used Abbey.

The_Grateful_Ghoul

As a Online Retailer, that only deals with Pay Pal and Cheques, am I right in thinking that Abbey is the best option for me?

kevthewev

Has anyone any experience of the Royal Bank of Scotlands Business Direct Account which is a post/internet account but is virtually free?

koru

I just discovered Secure Trust Bank. If you can lock your money away for 60 days, and live with limited withdrawals, their Secure Tracker Account seems amazing. 5.35% AER.

Check it out here: http://www.securetrustbank.com/scaleofcharges.htm

Terms and conditions here: http://www.securetrustbank.com/trackertandc.htm

koru

Some more details I have found about Secure Trust Bank Secure Tracker Account:

Minimum opening deposit is £10,000, for ltd companies, £1000 for individuals. Then £500 for subsequent deposits.

Maximum balance is £50,000 for ltd companies and individuals. £100,000 for joint accounts.

Only 3 withdrawals per year. 60 days notice required.

One drawback is that they say it takes 7 business days to clear deposits, and no interest is paid until then. That's a week and a half of no interest! If you pay in £50,000, and it would otherwise be earning 4.6% in the Alliance & Leicester, you are going to lose more than £60 of interest before the cheque has cleared. As you are then earning at 5.35% instead of 4.6%, you would recoup the lost £60 in a couple of months. So, don't use this account unless you plan to leave the cash in for a while.

They did tell me that they could do a special presentation of a cheque, to get it cleared quickly. The fee for this would be £20, so only worth it if you have a big deposit.

One other possible concern is that they are a small bank, so, despite their name, probably a bit riskier than big banks.

But 5.35% AER is incredible. It is a good rate for any deposit account, and kudos to them for allowing companies to use the account.

odorus

I haven't read all the postings so appologies if I repeat any information.
I have an Alliance & Leicester account as you can deposit the money into the post office, more convenient than finding the bank. It is free for 18 months for new business, and I found them easier to deal with than the HSBC.
For a long term solution join the Federation of Small Business (£100 for single membership plus £30 initial joining fee). They have a deal with the Coop bank which gives members free banking for life.
As Plumpud said it makes it easier to have a seperate account, even if you are a sole trader

Edinburghlass_2

kevthewev wrote:

Has anyone any experience of the Royal Bank of Scotlands Business Direct Account which is a post/internet account but is virtually free?

Yes, its good

MoneyMachine_2

I have just opted for the Abbey Business account and Business Reserve, mainly because its free and it was recommended by someone in the same industry as myself.
Won't pay any charges for what I'm using it for - which is the deciding factor really.

koru

Note, Standard Life Bank now have a Premium 10 day notice svings account, which pays 4.1% on up to £50k, and 4.35% between £50k and £200k. The only restriction is that you can only do 3 telephone withdrawals per year, but you can do as many internet withdrwals as you like.

Also, I have opened a Secure Trust Bank Tracker Account, and all went smoothly. I guess the crunch is when I want my money back, but so far so good, and it is earning 5.35%!