Confused by best small biz bank accounts...

stardust09

Hi, I am a sole trader (psychotherapist) who has enjoyed free business banking with Natwest for 2 years but it's now coming to an end.

I have a turnover of about £25,000 a year (with expenses of about £8,000) so it's not big bucks, hence why I'm trying to find an account which has low charges. I only have about 7 direct debits leaving my bank account each month, deposit about 10 cheques a month and then the rest is done via online payments (about 20 per month). I rarely deal with cash. I don't need loans or customer card payment facilities either.

I really don't want to get stung by the fees charged by most of the accounts I've looked at, let alone the monthly fees. I was considering the Co-op, but again am not sure how wise that is given recent events.

If I thought I could get away with it, I'd just use a personal bank account but I feel my activity is a bit too high to get away with that.

Does anyone have any ideas?

Thanks.

Savvy_Sue

I think you're going to need to contact a few and ask: I believe that some of those offering 'free' banking for the first couple of years restrict that to 'free' banking for a 'new business', not for those transferring. Some charge 'per cheque' and some 'per paying in', which obviously makes a big difference!

You have the advantage that you know what goes in and comes out, and how, so you may need to work out what will be least expensive.

Remember that you do have some protection if a bank goes belly up, even if it's a business account.

System

use a current account

Brassedoff

Barclays are currently offering free banking for 18 months.

RBS is doing the same too.

Not much else I can add to that.

martindow

This recent thread might be worth a read

https://forums.moneysavingexpert.com/discussion/4676803

There is discussion there on some options for banking.