Small Business Bank Accounts Discussion Area

Aquamania

Cazzer33 wrote: »

Hi all
Sorry if this isn't quite the right place for my post - I'm just trying to get to grips with the site!

I'm in the process of setting up my own online company and need to open a business bank account. I was just reading on here (not in the forums) that there's no reason why I couldn't start with a personal account and move to a business one if I expand.

Also - what's the craic with credit cards. Do I need to open a business credit card or can I just get a personal one where I can get cashback and 0% on purchases etc? Whether I get a personal or business one, it would only be used for business purposes and I would keep my existing credit card for personal purchases.

Hope you can help!

If you are a sole trader, then you you are the business.

Check the terms of the accounts. Many personal bank accounts and some personal credit card accounts prohibit their use for business purposes.

You could always apply for a business account.

If you are a limited company, then you will need a separate business account. As a new start, I don't think you will find any lender bending over offering you credit, sorry.

Albert_Tatlock_2

Why do banks not offer interest on business accounts, at least up to a certain level, on a similar scale to personal current accounts?

I’ve got up to £40k sitting in my business a/c at times and I administer the whole thing myself via online banking….i’ve not been into the branch since I opened it…..and I’ve to pay them for the pleasure?

Really?

OhReally_2

Albert_Tatlock wrote: »

Why do banks not offer interest on business accounts, at least up to a certain level, on a similar scale to personal current accounts?...

Perhaps look at it from the other side?

Why do banks offer interest on personal accounts, that are better to those offered on a business current account?

You'll probably find the answer lies in market forces

Personal customers are also ripe for up-selling. ISA's, life assurance, funeral cover, etc or even added value accounts that are not generally applicable to businesses.

Why have you got £40k in a current account? :eek:
Get a deposit account that pays interest. There are online versions that allow you to transfer to your current account as required (and even better rates for notice variants)

Albert_Tatlock_2

If I didn’t make that clear, the £40k would be peak balance of my business account.

It’s not all mine, of course, most of it is allocated to Corp Tax and the likes.It'll be handed over to HMRC in due course (just a pity it couldn't make me some money via interest in the meantime)


Rest assured that any (modest) personal funds I have are rat-holed appropriately in TSB Classic Plus, Santander 123, Stocks and Shares ISA and Pension Fund....most of which I've caught wind of on this very forum.

OhReally_2

Albert_Tatlock wrote: »

If I didn’t make that clear, the £40k would be peak balance of my business account.

It’s not all mine, of course, most of it is allocated to Corp Tax and the likes.It'll be handed over to HMRC in due course (just a pity it couldn't make me some money via interest in the meantime)


Rest assured that any (modest) personal funds I have are rat-holed appropriately in TSB Classic Plus, Santander 123, Stocks and Shares ISA and Pension Fund....most of which I've caught wind of on this very forum.

If I didn't make that clear, why have you got £40k in a business current account? :eek:
Get a business deposit account that pays interest. There are online versions that allow you to transfer to your business current account as required (and even better rates for notice variants)

Albert_Tatlock_2

Ah-ha, okay I think we've finally arrived on the same page.

Didn't know about these Business Deposit Accounts, so thank you. That's what i was looking for.

Now I need to try and find an instant access one so I can bump money around as and when required.

lovinituk

Albert_Tatlock wrote: »

Ah-ha, okay I think we've finally arrived on the same page.

Didn't know about these Business Deposit Accounts, so thank you. That's what i was looking for.

Now I need to try and find an instant access one so I can bump money around as and when required.

We opened our business accounts with Barclays and as a matter of course they gave us a current account and 2 instant access savings accounts. One savings account is used for surplus funds and the other is used to ring fence the money to be owed for corporation tax, VAT, etc. All accessible and controllable via online banking.

Albert_Tatlock_2

This Aldermore one looks good for my situation - name your required maturity date and it customises an interest rates for you up to 3%


http://www.aldermore.co.uk/business/business-savings/customised-fixed-rate-account/

Albert_Tatlock_2

I'd £25k set aside in my non-interest paying account, earmarked for Corp Tax.

I've managed to split this between two Aldermore Business Savings accounts - £15k in an Easy Access (with 1% interest) as I need this in August. The other £10k, I don't need til Aug '15 so I've locked this in at 1.78% until then.

Not going to make a massive difference to my life but it is a couple of hundred quid that i wouldn't have otherwise had.

duscoobster

Hi there,

This question has probably been asked and answered already but I did a search and couldn't find anything.

I am starting out as a sole trader soon and organising my bank accounts. What I want is to put the money I will put aside for tax into a high interest (as possible anyway) savings account. I had a meeting with a business banking advisor who said I could have a savings account attached to my business account, but the interest rate is shocking. I asked if I could put it into a personal savings account instead and she told me I shouldn't do that. Sadly we ran out of time so I couldn't get her to elaborate on that.

Is there anything actually stopping me from using a personal savings account for this purpose? Is it unwise, will I be charged more for some reason if I do this? Its just alot of money to be sitting in account waiting to go to the tax man and not actually doing anything.

Any help you can give me is greatly appreciated!

Cheers
duscoobster