Small Business Bank Accounts Discussion Area

edited 14 June 2010 at 5:30PM in Budgeting & Bank Accounts
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Former_MSE_DanFormer_MSE_Dan Former MSE
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edited 14 June 2010 at 5:30PM in Budgeting & Bank Accounts
This thread is specifically to discuss the

Small Business Bank Accounts

section of the Small Business MoneySaving guide.

If you want to discuss this section, or suggest any new accounts for consideration, please click reply.

Former MSE team member


  • edited 24 November 2009 at 11:01PM
    ragz_2ragz_2 Forumite
    3.2K Posts
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    edited 24 November 2009 at 11:01PM
    Must be fate, I was just looking for somewhere to ask about business bank accounts!

    I couldn't find whether it says this in the article but would interest earned in a business savings account have to be entered into our accounts as a business income?
    (Thinking about having a business account with a linked business savings account so that we can put money away monthly to pay for the end of year tax bill)

    Also, with accounts such as the Abbey one, which is free for day to day banking and looks great - from what I can see you can only pay in cash at cashpoints and only in notes (According to their website). Isn'tt that inconvenient?
    Progress is easier to acheive than perfection.

    May GC £341.60/£450
  • The 6% is only for new customers and only for a year then it drops to 0.1%
    If you join the federation of small businesses you get free banking with the
    co-op and a £25 bonus at the end of the year
    Hint for your cash is to put it into personal account then transfer it ( cheque/bacs/direct debit/standing order )
  • Small businesses should consider joining the Federation of Small Businesses. In return for the membership fee, there are many different benefits, including free legal advice, cheaper healthcare, telecoms etc. However, best of all you also get access to a completely free of charge business account with the Co-operative Bank with all the usual facilities.
  • AaronAaron Forumite
    75 Posts
    Part of the Furniture 10 Posts Combo Breaker
    Co-operatives can access the fee-free Co-operative Directplus account from the Co-op Bank without joining the FSB.
  • Please note that the terms and conditions of personal bank accounts usually have a clause prohibiting any kind of business use.
  • Whatever you do don't go with Barclays. They send you this calculator thing that you need to use to get online, then about 10 different passwords (ok, exaggeration, but lots), then charge for anything and everything. I've heard HSBC are much better, and they seem to still be making good money, so you know your money is safe.

    I've also heard good things about the co-op as a member of the FSB
  • mgtmgt Forumite
    8 Posts
    Alliance & Leicester Commercial bank (part of Santander group incl Abbey) has a good current account which is free while in credit within certain transaction limits. (We never pay except for bounced cheques). Also, you can pay in at any Post Office which is great if you live away from town, and has longer hours.

    One thing to be aware of if you use internet banking though: Santander group has a miserly £250/day faster payment limit against an industry limit of £10K (I keep emailing them but just get standard reply). Anything over this is by BACS (3 working days) and has to be drawn on cleared funds, so effectively it takes about 10 days from paying cheques in to money arriving in suppliers' accounts - always a factor when cashflow is tight.
  • Bank of Scotland have a free internet and postal business bank account, only stipulation is that you have to maintain over 5k in credit to avoid any charges. Probably more suited to BACS paying customers though as any cheques have to be posted in the free envelopes supplied by BOS. Never been a problem with postal banking for us. On line access is also very good. If you can keep over 5k in you don't have any fees to pay.
  • How do people find paying into an abbey account? We don't have a branch nearby and while free banking would be great if it is accompanied by increased petrol and parking it isn't much of a saving.

    What about Co-op how do you pay in with them?

    We have a Lloyds, HSBC and NatWest nearby are any of them any good for free business bank accounts?
  • Oh and any difference between these banks when we come to get a credit/debit card machine?
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