Alliance & Leicester - opening account question

EagerLearner

Hi everyone,

I am with First Direct but considering a new bank account, especially with rates over 6% for in credit balances etc.

I am never overdrawn and want good interest and a bonus for joining (£50 via quidco is fine).

However, I am now self-employed (for the past 5 months). Is this likely to present a problem when I apply for any new account, or do I just tell them how much I earn per month on average? Are they likely to deny me the account because I should have a business one?

FD have never said a peep, although officially I have not told them, but the amounts going in every week are not big enough to ruffle any feathers.

Many thanks :T

masonic

A&L only ask for your total income - it can include any money you have coming in that you, theoretically, could pay into the account. If you have enough money coming in to meet their monthly funding limit, then it shouldn't be a problem. Self employed people are surely allowed to run their own personal bank accounts, so I don't see how they could refuse you on the basis that you happen to be self employed. I suppose it's possible they might eventually object to how you run the account, but if they did, the worst case scenario is you close the account a bit earlier than you intended, still pocketing the referral money and getting the benefit of the interest rate while it is open.

DaStoopidOne

I applied for an Alliance & Leicester Prem Dir Acc with an appalling credit score and was accepted. I opted for no overdraft and credit card, so I would advise that if you were to apply that you deselect these options.

During the application process, they do ask for your employment details including your net take home pay; additionally they also ask about other credit arrangements but these questions are not detailed.

The banks base their decision on a number of factors so the best thing you can do is apply.

Good luck

EagerLearner

Thanks all - if they ask for the name of the employer, I could put the name I am trading as, and my address? I have a reasonable credit score, although I did move to this address 2 months ago. But my previous address I was at for over 2 years. I would like the overdraft so would prob tick that box?

greyteam1959

You are heading for problems in the future if you are using a personal account as a business account.
I am suprised that nobody has told you that this is not a good idea.
If you ever get investigated by one of the government departments ie HM Revenue and Customs etc etc you are going to have real problems and I can tell you that real problems mean costing you money to get it all sorted out.
You really should keep your personal and business finances separate.