Small business online bank account, advice?

TimBenjamin

Hi

I want to move my bank account away from Santander, who took it over from Alliance+Leicester. The main attraction of A+L was that it was completely free if you weren't paying in cash (e.g. like a shop), so it was great for my business. All our payments are b2b online transfers and the turnover is <£250k per year. We always have a healthy balance and no loans, overdrafts etc. We are just a 2 employees ltd co so def a "small" business!

We want to move away from Santander who behave like crooks half the time, and utter incompetents the other half of the time.:mad: Also they've ruined what was already quite a basic online service inherited from A+L, and have started introducing very sneaky charges. Many of the features just don't work or only partially work and it's staggeringly bad when compared to Smile, Cahoot, FirstDirect, etc.

What I am looking for:
- completely free account (not just for an introductory period, I mean free as in what you typically get for a personal account)
- visa debit card
- paper statements
- very good online system (interface, features)

What I don't want / need!
- loan, overdraft, credit card
- any kind of hardware security dongle or card-reader (which defeat much of the point of online banking)
- a "personal bank manager" or any of that nonsense, a call centre is fine for me on the rare occasions I need it
- a branch network
- a mobile phone app
- an in-credit interest rate (i.e. 0% is fine)

This seems to rule out all the major high street banks, but does anyone know where I can get a similar service to Smile, FirstDirect etc but for my small business account?

Cheers!
Tim.

JacksterD

After a fairly brief look around it looks like no one is offering completely free business banking just now. The Co-Operative Bank looks like it might be the cheapest, 18 months free then £3 a month after that, and no charge for automated payments.

http://www.co-operativebank.co.uk/servlet/Satellite/1196151412525,CFSweb/Page/Business-CurrentAccounts?WT.svl=nav3

gt94sss2

As you do your transactions electronically/online, I suggest you have a look at the HSBC Business Direct Account

Regards
Sunil

TimBenjamin

Hi,

Thanks for suggesting the Cooperative. I have heard good things about their customer service at least.

However I can see that they still require you to use a dongle that generates a unique code every time you want to login (absolutely useless if you are not in the same place as your dongle!), also the demo of their "new" online banking system is (to say the least) unimpressive.

Finally, yes they are free for 18 months but after that it's £3 a month. I would be subsidising people who want to use cheques and cash, I think £3 a month is outrageous for the service (bearing in mind that I am effectively lending them about £100k or whatever's in my balance, for a pitiful interest rate!)

I'm sure there must be something else out there ... ??

TimBenjamin

Anyone know about these people? "Metro Bank Online" - looks a bit low-budget but then my budget is low!

gt94sss2

TimBenjamin wrote: »

Anyone know about these people? "Metro Bank Online" - looks a bit low-budget but then my budget is low!

I (and several others) have a personal account with them but they only have (10) branches in London - would that work for you? i.e. you would probably need to go to a branch to open an account for instance.

As above, I would suggest HSBC over them - they have only been going for a year or so and am not sure they have many business customers yet..

Regards
Sunil

TimBenjamin

Ah yes, thanks Sunil, HSBC's "Business Direct" account does seem ideal. I'll apply and see if there are any catches!

I'm not sure if Metro Bank's branch locations would bother me, unless of course I had to go there to open the account (I live in Yorkshire). As I said I have absolutely no need to use a branch or deal with a "personal" manager etc etc!

Cheers,
Tim.

OllyM

HSBC Business Direct looks perfect BUT they do issue you with a security code generator thing for your keychain - it's not a card reader though.

eagleeye

Metro bank business account is not completely free .Their is requirement of 2000 pounds minimum balance otherwise there is a charge of 10 pounds each month after promotional period.

jonesMUFCforever

Tim, whether or not you want the use of a business manager or not you will be using their resources which have to be paid for.
Who do you think paid for the infrastructure to set up and maintain your internet interface and backroom systems and who pays for ongoing maintenance etc etc?
I am sure you do not work for free why should you expect your bank to?

olly300

jonesMUFCforever wrote: »

Tim, whether or not you want the use of a business manager or not you will be using their resources which have to be paid for.
Who do you think paid for the infrastructure to set up and maintain your internet interface and backroom systems and who pays for ongoing maintenance etc etc?
I am sure you do not work for free why should you expect your bank to?

Banks have different charging models.

So whilst HSBC's account is free if you just bank electronically without the need for paying in cash/cheques, they do charge you/charge you more than other banks if you want specific extra services.