MSE News: Santander to charge for 'free' business accounts

zcaprd7

zcaprd7 wrote: »

I know its not a big deal, but its something for Martin to get involved with - with all the fuss over banks helping small businesses, and mis-selling claims - I can't beleive they are doing this to get a few quid.

Wow, that was quick MSE!

tim441

Just to add my voice. I signed up for free forever around 10 years ago with Abbey Nat. I agree with comments that right to change t&c cannot supersede 'forever' as that is an absolute.

I have made formal complaint to Santander and will follow up with ombudsman when they reject (as i am sure they will) my complaint.

I have a funny feeling that enough stink just might get a change of mind.

So DON'T give up!!!!!!!!!!!!

imcat

HSBC have been gradually changing its "free" Business Direct product over the last 12 months by adding it "Ryanair" syle charges.

1. Lowering the transaction limits before charges apply. Only the very simplest of businesses can avoid them now

2. Started charging £6 incoming sterling credits from outside of the UK

3. Charging £6 per month just to have the ability to make a payment overseas (whether you need it or not)

This last charge was very sneaky. They sent out a vague message 6 months ago saying that you if you have a limit above £0 for overseas transactions you will automatically get charge £6 a month. And to change the limit, unlike all the other payment limits set up on the account which can be modified on line, you have to write to them to have it removed. Very underhand.

gt94sss2

CathyS wrote: »

I have spoken to HSBC this morning and will find that their cheque limits will probably cost me more than Santander's £7.50 pm -(

If you write/pay in to many cheques to make the HSBC Business Direct Account work for you, you may want to have a look at the Co-op range - they have one account with a monthly fee of £3.

Regards
Sunil

gt94sss2

imcat wrote: »

HSBC have been gradually changing its "free" Business Direct product over the last 12 months by adding it "Ryanair" syle charges.

1. Lowering the transaction limits before charges apply. Only the very simplest of businesses can avoid them now

The HSBC Business Direct account is designed for businesses who do most of their business electronically - they don't necessarily have to be simple businesses.

There are other accounts and some suit some businesses more than others. I suggested HSBC for people who mainly do electronic transactions with the occasional cheque etc. (within/near their transaction limits)

2. Started charging £6 incoming sterling credits from outside of the UK

I thought they had always (i.e. a long time) had this charge for payments above £100.

3. Charging £6 per month just to have the ability to make a payment overseas (whether you need it or not)

I hadn't heard of this one but it can't be compulsory - my father doesn't pay it.. but then he doesn't make payments overseas and neither will most small businesses..

Regards
Sunil

abarnard

Likewise I have a 'free for life' deal which seems to have predeceased me. I've written a letter of complaint and am looking about for other options in case I don't recieve satisfaction. For example, I could decide to open a second personal current account and use that for business purposes, as most of my payments in are BACS, faster payments or telegraphic transfers and I only need a bank account with a IBAN number to allow that.

For small business owners with a minimum deposit of £10k and who don't need a counter service , I also noticed that Moneyfacts identifies that the state bank of India offers a free business banking product.

Has anyone got experience of this organisation?

robbyj64

If you're a sole trader, then can't you just open a personal bank account wth all the related benefits that brings - including free banking. The problem remains for limited companies though.

gt94sss2

abarnard wrote: »

I could decide to open a second personal current account and use that for business purposes, as most of my payments in are BACS, faster payments or telegraphic transfers and I only need a bank account with a IBAN number to allow that.

For small business owners with a minimum deposit of £10k and who don't need a counter service , I also noticed that Moneyfacts identifies that the state bank of India offers a free business banking product.

Their website states its limited to 25 free transactions/month

Depending on the number/type of transactions you have, the HSBC Business Direct account may suit you better as they seem to be mainly electronic.

Regards
Sunil

gt94sss2

robbyj64 wrote: »

If you're a sole trader, then can't you just open a personal bank account wth all the related benefits that brings - including free banking.

I think many banks will close a personal bank account if they think its being used for business purposes. (as its often against their T&C).

Regards
Sunil

imcat

gt94sss2 wrote: »

The HSBC Business Direct account is designed for businesses who do most of their business electronically - they don't necessarily have to be simple businesses.

There are other accounts and some suit some businesses more than others. I suggested HSBC for people who mainly do electronic transactions with the occasional cheque etc. (within/near their transaction limits)

I thought they had always (i.e. a long time) had this charge for payments above £100.

I hadn't heard of this one but it can't be compulsory - my father doesn't pay it.. but then he doesn't make payments overseas and neither will most small businesses..

Regards
Sunil

This is the message that HSBC sent out ...

You are receiving this secure message as you held a Business Internet Banking ('BIB') International Payment limit as at the 1st June 2012 and are currently paying the £6 monthly fee for the provision of this service. This monthly fee is in addition to any payment charges that may be incurred by making an International Payment via BIB.

If you have requested us to remove your International Payment Limit since the 1st June please ignore this secure message.

You will need an International Payment limit if you wish to make International Payments from your business current account(s), International Business Account(s) or Foreign Currency Account(s) using BIB. It enables you to make SWIFT and SEPA payments overseas, and currency payments within the UK. Exchange rates are provided directly from our trading room so you receive real-time exchange rates for your payments.

If you don't currently use the BIB International Payment Limit, don't expect to use it in the near future or wish to remove payment functionality you can request the removal of your International Payment Limit. To do so, please reply to this message and tell us that you wish to remove the International Payment limit from BIB. Alternatively, you can go to the Help Centre and download a Limit Amendment Form.

If you have any queries please contact the help desk on 0845 602 2014.

Thank you for your continued support

The Business Internet Banking Team

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By default, all Business Internet Banking accounts have an international payment limit unless you have explicity requested for it to be removed. Tell your father to check his statements carefully.