Business v Personal Account

venomx

What is the difference between a business and personal account ? And if you use a personal account for business can the account be closed ? Thanks

Robin9

venomx wrote: »

And if you use a personal account for business can the account be closed ? Thanks

Yes - you are contravening the T&C's.

JuicyJesus

A business account generally has different terms from a personal one, in that it charges for transactions. One of the tacit trade-offs about personal banking being free in this country is that business accounts are chargeable in turn, although most business accounts give new businesses or switching businesses around a year to two years' free banking. More specifically, borrowing available on a business account is more likely to be personalised to the business and you're likely to get more specialised support from a business banking team in a branch, if that's how you like to do things.

Most if not all personal banks do have it in their T&Cs that using a personal account for business takings is a breach and it can lead to your account being closed.

pramsay13

I've used a personal account for business transactions as the amounts were low so difficult to justify paying for a business account.
The main downside that I have encountered is when customers write a cheque to you personally rather than a business name it doesn't look very professional.
I've recently opened a Starling bank account and they offer a free business account so might be worth looking at that.