HSBC Closing my accounts. Looking for new bank.

jcgilbert

I'll try to cut a long story short.

I run an online business (sole trader). I bank with HSBC and have done all my life. I have a current account, saving account, business account and a business saving account. Out of the blue HSBC have decided to completely close all my accounts with absolutely no explanation as to why (they wont give me one, trust me I've tried). I'm really p****d off as you can imagine.

Obviously, I must now look for new bank. My HSBC accounts will be closed on Dec 3rd.

I understand it is the recommendation of Martin Lewis to use a personal current account if possible, rather than a business account. My accountant believes I should be looking for another business account though as not only does it make record keeping easier but it also complies with HMRCs best practices.

A list of what I'm after is: A Business account, a personal current account and also a saving account if it makes sense to have one. I use internet banking a lot so a good online banking system would be nice. A period of free business banking would also be good, this is something I got with HSBC. I don't like the idea of having different accounts with different banks to I want to try and get all of this from one place.

So I suppose I come to this forum looking for a bank recommendation or some advice. Can anyone help?

Thanks in Advance!

grumbler

Learn the lesson. Get at least two personal accounts with different banks.
Switch your HSBC personal account for a bonus instead of waiting until HSBC close it: Top accounts with free switching cash

MDMD

jcgilbert wrote: »

I understand it is the recommendation of Martin Lewis to use a personal current account if possible, rather than a business account. My accountant believes I should be looking for another business account though as not only does it make record keeping easier but it also complies with HMRCs best practices.

I'm not sure Martin would recommend to use a personal account for business purposes as it a clear breach of probably all the banks' terms and conditions

You run the risk of that account being closed too.

agrinnall

Can you point to anywhere that Martin or MSE says to use a personal account for business banking, as I'd be very surprised if that is correct?

You may well find it difficult to open more accounts if yours are being closed, especially if HSBC have reported it to the CRAs and perhaps opened a CIFAS marker, so get onto finding new ones asap while you still have time.

Futuristic

HSBC closed all your accounts yet you are still looking for another bank to have all your accounts in one place, this will only cause you problems down the road if it happens again.

Keep your personal & business separate.

TSB offers 18 months free business banking if you switch and they're also good for personal account with interest

colsten

agrinnall wrote: »

Can you point to anywhere that Martin or MSE says to use a personal account for business banking, as I'd be very surprised if that is correct?

Be very surprised, as MSE do indeed suggest people should consider personal accounts.

Step 1: Use a personal account if you can

If you are a sole trader (not a limited company), then you may be able to use your normal bank account for your business, with all the better terms that involves (though check your terms & conditions - some banks won't allow this).

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

I have yet to see any personal current account T&Cs that don't specify that the account is for personal use only. So not sure why MSE would recommend using personal accounts. Especially since it invariably ends in tears when the bank suddenly closes the account because of a breach of T&Cs.

djpailo

Maybe Martin should look to update the guide.

GingerBob_3

jcgilbert wrote: »

I'll try to cut a long story short.

I run an online business (sole trader). I bank with HSBC and have done all my life. I have a current account, saving account, business account and a business saving account. Out of the blue HSBC have decided to completely close all my accounts with absolutely no explanation as to why (they wont give me one, trust me I've tried). I'm really p****d off as you can imagine.

Obviously, I must now look for new bank. My HSBC accounts will be closed on Dec 3rd.

I understand it is the recommendation of Martin Lewis to use a personal current account if possible, rather than a business account. My accountant believes I should be looking for another business account though as not only does it make record keeping easier but it also complies with HMRCs best practices.

A list of what I'm after is: A Business account, a personal current account and also a saving account if it makes sense to have one. I use internet banking a lot so a good online banking system would be nice. A period of free business banking would also be good, this is something I got with HSBC. I don't like the idea of having different accounts with different banks to I want to try and get all of this from one place.

So I suppose I come to this forum looking for a bank recommendation or some advice. Can anyone help?

Thanks in Advance!

Banks really are the lowest of the low - maybe even lower than insurance companies now.


If there's no indication of criminality the banks should be forced to tell you why they're closing the account. Again, a total lack of regulation here.

GingerBob_3

jcgilbert wrote: »

I'll try to cut a long story short.

I run an online business (sole trader). I bank with HSBC and have done all my life. I have a current account, saving account, business account and a business saving account. Out of the blue HSBC have decided to completely close all my accounts with absolutely no explanation as to why (they wont give me one, trust me I've tried). I'm really p****d off as you can imagine.

Obviously, I must now look for new bank. My HSBC accounts will be closed on Dec 3rd.

I understand it is the recommendation of Martin Lewis to use a personal current account if possible, rather than a business account. My accountant believes I should be looking for another business account though as not only does it make record keeping easier but it also complies with HMRCs best practices.

A list of what I'm after is: A Business account, a personal current account and also a saving account if it makes sense to have one. I use internet banking a lot so a good online banking system would be nice. A period of free business banking would also be good, this is something I got with HSBC. I don't like the idea of having different accounts with different banks to I want to try and get all of this from one place.

So I suppose I come to this forum looking for a bank recommendation or some advice. Can anyone help?

Thanks in Advance!

The mind boggles!


I'm always suspicious of that phrase, but I think it's safe to say that HMRC don't have any.

boo_star

djpailo wrote: »

Maybe Martin should look to update the guide.

He probably should. If it's out of date it's probably out of date by at least 10 years.

When I worked for a bank about 8 years ago it certainly was. I didn't close peoples accounts over it, but I gave them a very stern warning that it wasn't allowed and others may not look the other way.

They probably paid no attention.

boo_star

GingerBob wrote: »

The mind boggles!


I'm always suspicious of that phrase, but I think it's safe to say that HMRC don't have any.

I assume that it's best practice to have a seperate account for business use and personal use in case they audit you.

It doesn't technically have to be a business account I suppose but it should be seperate ideally.