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

Jaxer

I'll also be writing in to make a (probably pointless) complaint. Alternatives seem to be the HSBC Direct Business bank account already mentioned by others, and for those close enough to one, I've seen that Metro Bank offer a business account which is free for 12 months and then free as long as you maintain a £2000 balance.

I'll probably go for the Metro option as a new branch has opened near me and the convenience of late+Sunday opening suits my needs.

tifo

Isn't this a bit like 'unlimited' broadband which is 'limited' within the fair use policy? Not many people complain about that .....

DruidDonagh

tifo wrote: »

Isn't this a bit like 'unlimited' broadband which is 'limited' within the fair use policy? Not many people complain about that .....

I know that struggle. I did complain, to BT about that and was answered that I should upgrade to get the real unlimited option.
I was 15 pounds per month for their version of unlimited. Which meant that I was limited to 10GB a month an paid extra if I went over that. I really received the unlimited when I was willing to pay 40 a month.

gogo123_2

am i right in thinking you can legally use a personal account if you are a sole trader.

this is why i ask

Step 1: Use a personal account if you can
If you are a sole trader (ie not a limited company) then you can simply use your normal bank account for your business, with all the better terms that involves.

However, using a separate, dedicated account could make your record keeping a lot easier, and could be a huge bonus if the HMRC selects your tax return for an in-depth enquiry. For all the best buys see the top bank account guide.
Yet if you make large amounts of transactions, of big sums, or need to regularly bank cash, then your bank may request you get a business account. If that's likely, start with the right one straight away.

the above is taken from this site here, many thanks

http://www.moneysavingexpert.com/banking/small-business

DruidDonagh

I think you can. Ask any bank to be sure.
The same goes for linked accounts. If the savings remain untouched and if the bank supports the fact that you can put cash straight into that you will be dodging additional fees. because they are linked, it should be easy to transfer. I can do the same here with my lloyds account. I can pay cash straight into my savings account at no charge and thus dodging fees. With lloyds transferring between linked accounts is free. My opinion is that all banks should provide that.
It is legal, I get a better interest and I pay no additional fees.

tifo

DruidDonagh wrote: »

I know that struggle. I did complain, to BT about that and was answered that I should upgrade to get the real unlimited option.
I was 15 pounds per month for their version of unlimited. Which meant that I was limited to 10GB a month an paid extra if I went over that. I really received the unlimited when I was willing to pay 40 a month.

Even truly 'unlimited' has a limit of around 100gb ....

I personally don't use that much in any month, but have recently been looking to change and noticed that even those that advertise no fair use policy will write to you at over 100gb ... so it is a fair use policy!!

Back to the thread, it's like Santander advertising free banking 'forever' and them applying a limit to the 'forever'.

DruidDonagh

tifo wrote: »

Even truly 'unlimited' has a limit of around 100gb ....

I personally don't use that much in any month, but have recently been looking to change and noticed that even those that advertise no fair use policy will write to you at over 100gb ... so it is a fair use policy!!

Back to the thread, it's like Santander advertising free banking 'forever' and them applying a limit to the 'forever'.

:rotfl: but for less money in the end :rotfl:

Cornwell

Google the phrase "Free day-to-day banking forever" santander and you'll find a link to the page on today's website (this forum won't let me add links, sorry) with that phrase.
And thanks to the wonderful Wayback Machine, we can see what the Abbey National Business website looked like on 16 June 2004 , just go to wayback.archive.org and enter www anbusiness com (with dots for spaces) into the box you can see this)
You deserve free business banking
As long as your business bank account is within certain transaction limits, business banking at Abbey National is free - forever.
And there's a link to more information. With a footnote "1 Subject to the relevant charges to the law, regulation or the imposition of a tax connection with bank charges. Fixed charges apply for transactions that exceed the specific free limits. Details of monthly transaction limits are available upon request from Abbey National business.
We will update the content of this notice from time to time. Please ensure that you visit this page regularly and refresh your browser to ensure your information is up to date."
Is that last paragraph the weasel way out?

Paulgonnabedebtfree

Cornwell wrote: »

Google the phrase "Free day-to-day banking forever" santander and you'll find a link to the page on today's website (this forum won't let me add links, sorry) with that phrase.
And thanks to the wonderful Wayback Machine, we can see what the Abbey National Business website looked like on 16 June 2004 , just go to wayback.archive.org and enter www anbusiness com (with dots for spaces) into the box you can see this)
You deserve free business banking
As long as your business bank account is within certain transaction limits, business banking at Abbey National is free - forever.
And there's a link to more information. With a footnote "1 Subject to the relevant charges to the law, regulation or the imposition of a tax connection with bank charges. Fixed charges apply for transactions that exceed the specific free limits. Details of monthly transaction limits are available upon request from Abbey National business.
We will update the content of this notice from time to time. Please ensure that you visit this page regularly and refresh your browser to ensure your information is up to date."
Is that last paragraph the weasel way out?

Thank you for that. I've printed out a page for the day when this goes to the ombudsman. The important bit is that the archived page in the search goes into a bit of detail: "Free day to day banking forever. While others may offer free business banking for 12 to 18 months, we give you free day-to-day banking forever." The fact that they have made a clear distinction between what they are offering and what other banks are offering could end up being crucial.

magpiecottage

This has come at an inopportune time because I am away for most of the next three weeks.

However, note my signature, be aware that my business has one of these accounts and I have already written to Robin Foale, who has signed the letter.

For those of you who have a turnover and assets of less than €2 million (yes that is € but it was£1 million so it has gone up) and less than 10 employees (i.e. no more than 9), you should complain to Santander. They have eight weeks to reply.

The address that Santander give for complaints is

2 Triton Square
Regent's Place
London
NW1 3AN

although any valid Santander address will do.

Get proof of posting (it is free from the Post Office). If push comes to shove, the Financial Ombudsman Service will normally deem it to have been received two working days later.

Include the documentary evidence you have. I have found the original welcome letter signed by Andrew A. R. Niven Manager Business Banking Centre Abbey National Business that I received on opening the account.

If you do not get a satisfactory answer from Santander within 8 weeks (and I think the only satisfactory answer will be for it to back down) then you can go to the Financial Ombudsman Service.

For you it will be free. There is a charge for Santander but we are looking to get them to honour the promise, not to punish them (which the Financial Ombudsman Service cannot do anyway).

On that point, though, it is Mr Foale who has written to you, so reply to him, not the contact given on the register.

And make sure you keep a copy. I might need it in a few months.

I'll write more after my holiday.