Best bank for business banking?

the_commander

Hi can anyone tell me where the cheapest bank is for a business account? I was looking at Lloyds but their transaction fees seem a little high.

Any advice?

Thanks

Snow_Dog

A&L were doing a zero fees if you pay in at least £2000 pcm. They also have one of the highest business reserve interest accounts.

The thing is you have to determine what type of transactions you are going to have, for example, the co-op bank were offering free business banking, but it only goes as far as standard transactions eg BACs, cheques etc, if you check their CHAPS charges its way over Lloyds charges.

We receive several international CHAPS payments per month and the Lloyds charge is £7, when I looked the co-op and A&L were about £30 (from memory), this wipes out the advantage of free standard transactions.

You can also minimise your fees by clever banking, use BACs to pay all suppliers, minimum charge. If you then email the remittance note to them too, they get it quicker (less chance of lost mail, accounts on hold etc) and you save on the cost of a stamp too.

If you add this up you can save about £1 per payment, at 10 payments a week thats £500 per year.

the_commander

Thanks Snow Dog, I am starting an online business. There is no income at the moment and probably will not be for the next year. I am only paying for advertising, so not sure which way would be best to pay. I will initially be paying out about £3,000 then maybe a couple of hundred a month. Unfortunately I will not be able to lodge £2,000 per month, that is way to rich for me at the moment.

Appreciate all your help, any suggestions bearing the above in mind?

Thanks

gt94sss2

My father uses a HSBC Business Direct account which suits him as he doesn't deal in cash..

Regards
Sunil

the_commander

Thanks Sunil, It looks pretty good. All I want is an account that lets me transfer money in and out for free, and this account seems to fit the bill. Cheers

PauliPauli

the_commander wrote: »

Thanks Sunil, It looks pretty good. All I want is an account that lets me transfer money in and out for free, and this account seems to fit the bill. Cheers

One warning with HSBC I bank with them a lot but you have to always be on the ball with them, always viewed them as a "sneaky bank" but worth it if you always read small print and keep up with their changes/charges

We also have that business account - very low running costs but ..... DONT keep more then £500 lying in their, check out their interest rate on this account compared to their normal business account !!

But still worth it if you keep above in mind

PS I expect banks to be sneaky as their prime objective is profit, doesn't bother me, as they never get any loyalty from me, fool me if I get "caught out"

wrangler360

http://bba.moneyfacts.co.uk/root.asp

This site allows you to compare the business banking providers.

Remember as well lots do fee free periods i.e

HBOS 12 months
RBS/Natwes 18 months
Lloyds 24 months
etc

so in the free period there should be no account fees. hope this helps

gibbyni

were with abbey and have been for 4 years now and have never had to pay a penny for the account even though we have a good turnover. I have never had a problem with them and always use there online banking. On the occasions that i have needed to phone them with a question it has been easy enough to get the answers.

the_commander

Thanks everyone, great responses there. Gibbyni, What are Abbey's transaction fees like? You don't mean they are free do you?

Great website that Wrangler.