Recommended cheap business accounts?

0o0

Hi folks,

I have a Natwest business bank account and the 2 year free banking offer will shortly expire. I've just downloaded the account charges and completely shocked about the subsequent monthly fees to run the account:

-£10 Minimum monthly fee
-£6 Account maintenance charge/fee

The Account maintenance fee is described as "to cover the cost of providing you with the basic business account services such as cheque books, paying-in books and plastic cards"

Huh??!:eek: £72 per year for cheque books that no one uses anymore, and plastic cards which are issued once every 5 years!

So I was wondering if you guys could recommend any business bank accounts that have cheap monthly fees? Preferably one with no monthly fees, if this actually exists?

The additional transactions fees for things like paying in cheques, using standing order etc, I can stomach since I have minimum transactions each month, but I still dont understand why using a business bank account seems to cost so much more than a personal one? :think:

Why for example, would a bank need to charge 22p to receive a standing order payment?? They should be PAYING ME for bringing in new money, not charging me!

diable

You can claim the fees against your tax bill as you have a business.

eagleeye

Hi
you can try hsbc business direct account which is basically internet or phone based account.They might push you for other accounts but ask specifically for business direct.for first 18months there is no limit on transactions and after 18month if you go over limit then only they will charge.Anyway the limit is generous .please check business.hsbc.co.uk

ChiefGrasscutter

Banks are businesses, they offer you a service, and they charge you for providing that service.

In the UK we have been become accustomed to 'free banking' for personal customers. In the much of rest of Europe personal customers pay for their bank account. - and, as I regularly point out on these forums, going overdrawn in France is a criminal offense - it tends to concentrate the minds of the banks customers'.

The costs of providing 'free' personal banking service is met from somewhere. Either it is met by poor rates of interest on current/savings accounts - and/or it is met by charges levied elsewhere, overdraft rates, or high business banking charges are two that come to mind.

You need to start a campaign to get the banks to charge all personal customers the real cost of running their accounts, annual fees for all accounts and credit cards etc!

Yes you can claim bank fees as an allowable expense - but it still comes out of profits - so in that respect I'm with the OP.

heloid

HSBC have been brilliant for me, and free.

olly300

dpraved wrote: »

Which countries are these?

France, Germany, Spain, Iceland, Finland.....

UK banks use personal customers who use their overdrafts and go over drawn to pay for those that don't. The way the UK is it's virtually impossible not to have a personal bank account.

There as with business banking the risks are greater for the bank i.e. the business going bust.

magpiecottage

Santander does free business banking.

Its reputation here is not very good but I have found that doing everything online is okay apart from one occasion when their website crashed and a transfer had did not take place (the money was not lost, it just didn't move).

thenudeone

diable wrote: »

You can claim the fees against your tax bill as you have a business.

No you can't!

The costs are a tax-deductible expense which will reduce the taxable profit (if any), but you can't reduce your tax bill by the amount of the bank charges!!!

0o0

Thanks for the input guys. I ended up going with HSBC as suggested above and their Business Direct account looks perfect for me. No monthly charges (great!), transaction charges only applicable if you go over the monthly limit AND I get to do business with a company that didnt need bailing out by the government. Goodbye Natwest. I'd like to say its been a pleasure banking with you but my nose might grow longer.

diable

thenudeone wrote: »

No you can't!

The costs are a tax-deductible expense which will reduce the taxable profit (if any), but you can't reduce your tax bill by the amount of the bank charges!!!

So you pay less tax.

eagleeye

diable wrote: »

So you pay less tax.

so less profit if business opt for paid account!