Best Bank Account for a Sole Trader??

HM

I know this is a website for individuals rather than businesses, but I'm wondering if anyone has any recommendations on what is the best business account for a sole trader? My other half is just going self employed and the bank charges seem to be really high for business accounts. I'd really appreciate any tips you can share with me. Thanks in advance.

mrsbez_2

A few months ago, Royal Bank of Scotland were offering a free 'direct banking' account. I don't think they let you pay in money at the branch, but you can do everything by post free.

Also have a look at A & L or Abbey.

My OH took a free 12 month banking with Lloyds TSB and now we are looking around to change it.

Depends on what transactions you need to do, but some people i know just run a seperate personal bank account for their business transactions. I don't think the banks would be happy if they found out!!

JacquiB_3

I am a sole trader and presently bank with the Bank of Scotland. I don't put cash into this account, don't write cheques and only deposit around 5 cheques per week at no charge and also all my point of sale amounts (ie machine which takes switch, debit and credit cards) into this account. I am never overdrawn and do not have an overdraft. Previously the bank have not charged me anything and I got some interest.

Today I received a letter advising me that unless I keep a balence of £5000 in my account each month then they will charge me £15 per month. I phoned to clarify whether this was £5k going through my account each month or if I had to keep a balence of over £5k at all times. They intend to charge me £15 unless I keep £5k sitting in my acccount. I know that they don't make much money out of me but this seems ridiculous.

I advised that I intend to close my account! Any tips.

oscarhugo

A year or two ago I changed our business [2-man business] account to Abbey from NatWest with whom we'd become increasingly fed up [high charges, poor rate of interest on credit balances, poor customer service] and we are fairly satisfied. Abbey customer service isn't fantastic but it seems to me that no bank's is. I reckon we've saved quite a few £££ & earned quite a few too cos we opened a Business Reserve a/c to run alongside it & we try & keep minimal amounts in the ordinary account - though it means keeping an eye on the balances. And our Rainy Day Funds have gone into an A+L 30-day-notice a/c to earn extra interest. A+L's CS is less than fabulous too...

HTH

headcase

I'm self employed with turnover about £120000. Use 2 personal current accounts for everything. Bank knows this and one is called business account. ( with I.f ). Moved later to LLoyds as closer and told them and they are okay. i do not beleive in paying banks for use of our money.

crjos

I thought that I'd wake up this old thread as the same question now applies to me. My wife wants to set up a new account to keep her income from her sole trader business separate to her personal finances.

Can anyone recommend an account which can do this and gives us some perks at the same time? The business provides an irregular income, and initially there won't be much money to deposit. However, we need it ready so that when more revenue comes in, we can deal with it.

Thanks and Happy New Year!
crjos

bigsy

I use a Nationwide FlexAccount for my self-employed income with a linked e-Savings account to transfer money for the tax bill. NW have never complained about this but I only have a maximum of 6-8 BACS payments and 6 cheque deposits per month and almost never write any cheques from the account.

You need to deposit £1k monthly into a FlexAccount to earn the top rate of interest (just reduced to 4%) but the transfers to e-Savings (5.55%) are instantaneous.

gy_girlie

Hi everyone, even though i've just joined this site, i have been redaing posts off here for weeks now, so i thought i would tell my problem and hope that someone can help.
I have 2 ccj's and not a good credit rating, due to problems in the past with an ex partner. I am now married and own my own house and slowly paying these debts off. My problem is that i am due to start a business in the new year and i've been told i cannot start it until i have a business account set up. I have made my credit rating worse because of trying to get a business account with a few banks who declined me. I only have a basic account with natwest, but have been told i cannot use this as my business account, as all my day to day housing costs come out of here and the tax man will not be happy, not to mention me getting confused. I now do not know what to do, as applying to any more banks will made my credit rating worse, even though its at its lowest score. Please can anyone advise

Regards

wiltshib

I only have a basic account with natwest, but have been told i cannot use this as my business account,

Have you asked Natwest whether you could have a second basic account so that you can keep the two seperate?

jochan_2

I know that this is an old thread but hope that someone may still be able to help.

I am about to set up as a sole trader. I will be based in England but selling my skills to academics in Japan. I do not envisage needing to pay anyone in Japan but will be receiving payments in japanese Yen from clients.

I have been advised that I will get more trade if I had a Japanese set up, ie website, invoicing instructions and bank account.


What sort of questions should I be asking of my accountant with respect to minimising bank charges relating to currency conversions? I have not as yet approached a bank in the UK to open a business account but will be doing so soon.

Also what things should I note and beware of, relating to international business as a sole trader?

Many thanks for any assistance,
JC

pinkdalek

Depending on the volume of transactions you may be able to run a personal account and avoid charges.

The only problems would arise if you received a cheque payable to (for example - A SMITH TRADING LTD rather than just A SMITH)

You definately need a seperate account however as this would help you with your tax returns.