Opening a business account

befuddled_and_confused

I have a several business accounts with Barclays. For a number of reasons I have applied to open a business account with HSBC. They tell me unless I move all my business banking to HSBC they won't let me open an account. They say all the banks do not do 'dual banking'! Is this correct? Can they do this? I don't want any borrowing. I don't want an overdraft. In fact they only thing I want is a current account into which I can put money. Can anyone help me please as I find this very confusing.

opinions4u

If they don't want your business they don't have to take it.

befuddled_and_confused

I appreciate that they have the right not to want my business. It was more of a question regarding the comment that the banks don't do dual banking? I have always been under the impression that one way of avoiding the 85k ceiling on the government backed insurance for bank balances is to have two accounts with two separate banks?

MrSilk

You are free to do your banking with who you wish, a bank can't force you to move all of your other accounts to them. Other accounts you hold elsewhere should not affect the application, although they may enquirer on how they are being ran in form of bank statements.

henm2

No split banking is just a HSBC policy and does not apply to other banks. There is a similar policy when it comes to opening a HSBC personal current account also.
Obviously you are free to bank wherever you want. One thing to bear in mind though is that if your particular current account banking personal or business is split between different banks it can affect your scoring or track record with them if you ever do apply for credit facilities with a particular bank. For example your level of transactions crediting an individual account will be less than what they could be. Also due to what is called positive data sharing between banks credit facilities at another bank may show up on an account/loan application and again affect what then may be offered.

BusinessIsBusiness

henm2 wrote: »

No split banking is just a HSBC policy and does not apply to other banks. There is a similar policy when it comes to opening a HSBC personal current account also.
Obviously you are free to bank wherever you want. One thing to bear in mind though is that if your particular current account banking personal or business is split between different banks it can affect your scoring or track record with them if you ever do apply for credit facilities with a particular bank. For example your level of transactions crediting an individual account will be less than what they could be. Also due to what is called positive data sharing between banks credit facilities at another bank may show up on an account/loan application and again affect what then may be offered.

Exactly so if you told the bank your turnover was 90k but the average turnover on an account with a particular bank was half that you would probably face greater scrutiny.

Sounds like it could even be a risk thing for them.

You are free to open your accounts with whom you wish and split it fir the same or different businesses. Its dependant whether that fits in with the banks requirement.

tim75

I just moved my business banking from HSBC for the simple reason they were useless. The online banking is rubbish and the staff in the branch are unable to make any decisions without running them past head office first. The whole set is totally disjointed, a very unprofessional outfit.