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Is there still such a thing as a free business bank account

Hi,

I was wondering if there is still such a thing as a free business bank account as currently we have a free account with Santander though until recently it has been my dad dealing with payments etc and so had been the only one named on the account though the actual business is a registered partnership but after submitting the forms that it states online we could fill out to amend the details and add both myself and my mum we were told that it wasn't possible to do with our current business account.

But that we could apply online for a new account and then transfer the existing balance, direct debits and standing payments into the new account all I could see on there were either free private current accounts or business accounts with monthly fees.

Comments

  • Neil_Jones
    Neil_Jones Posts: 9,413 Forumite
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    Private/consumer/"normal" Current Accounts will usually have a clause in the T&Cs saying you cannot use them for businesses.

    Most business banking is only "free" for a period of time, typically 12/18/24 months, and after that you pay. So either you shift your account around every 12/18 months or you pay a monthly fee.

    Note that where a provider says there are no monthly fees there will usually be charges for some of the other services instead. Most business banking normally charges you for payments, cheques, when you pay in, when you pay out, when you scratch your nose, etc, instead. These can be more expensive than a flat monthly fee which would cover all these for one flat fee.

    Also you should be able to reclaim the business fee as a legitimate expense, surely?
  • We still have completely free Business Banking with Santander and we will not be changing. I believe Starling is free, but it's app based and can't use cheques.

    Avoid HSBC, Lloyds and Barclays, they have ridiculous charges for their Business Banking, putting you on plans and pay per payment as well as monthly charges. Banks really do hold businesses in contempt. They don't charge for personal accounts but have a myriad of charges on business accounts.

    Santander is telling you it's not possible because they want to put you on an account where they can charge you. Santander is one of the better ones, as they charge a flat fee each month which is considerable cheaper than the ones above.

    Metro Bank have free business banking, if you hold a balance of £5k or more and the first 50 transactions are free.
  • Robin9
    Robin9 Posts: 12,464 Forumite
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    .............. I believe Starling is free, but it's app based and can't use cheques.

    ..............

    Metro Bank have free business banking, if you hold a balance of £5k or more and the first 50 transactions are free.

    Neither of which are of much use for those businesses who still handle cash or use cheques.

    We use Barclays - still free - and have to pay in cash via the Post Office following their branch closure. In theory I think PO restrict you to £300 in cash paying in but our local is happy to take any amount.
    Never pay on an estimated bill. Always read and understand your bill
  • Prism
    Prism Posts: 3,834 Forumite
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    I use Starling

    Can do cash and cheques through the post office although I have never had the need to do that
  • System
    System Posts: 178,224 Community Admin
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    I'm glad you asked this, as I am still using the Santander Business Account which I opened in September 2000 when I started my business. It was free then, and still is …………... I am terrified they will notice one day and start charging me!!!!!!
    This is a system account and does not represent a real person. To contact the Forum Team email forumteam@moneysavingexpert.com
  • Zanderman
    Zanderman Posts: 4,812 Forumite
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    Robin9 wrote: »
    Neither of which are of much use for those businesses who still handle cash or use cheques.

    We use Barclays - still free - and have to pay in cash via the Post Office following their branch closure. In theory I think PO restrict you to £300 in cash paying in but our local is happy to take any amount.

    How do you get free business banking with Barclays? Are you on a start-up or switching offer that will expire?
  • Zanderman
    Zanderman Posts: 4,812 Forumite
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    The OP could look at several of the app-based banks, or virtual banks. Several do 'free' business banking but most omit one or more traditional elements - such as paying in cash, paying in cheques, issuing cheques (many people and businesses do still use cheques, despite what some on this forum want to believe!). But if you don't need those - and are absolutely sure you don't need them, an app-based account may be alright. Starling, Tide, Monzo etc etc are worth looking into.

    But app-based accounts with some also don't have IBANs - for international payments - and that restricts incoming payments from, say, Amazon Pay, so rules them out if you take online payments in that way.

    And some only offer business accounts to certain types of business - Starling for example don't, afaik, yet offer bank accounts to partnerships - only to sole traders or to limited companies.

    We use Yorkshire Bank for our business banking at the moment as it does have all the features above - but it does charge a monthly fee and fees for some transactions. If I could find a free app-based one that did all the stuff we need I'd move it - but at present none exist for our needs.
  • Chino
    Chino Posts: 2,031 Forumite
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    edited 23 September 2019 at 4:53PM
    Robin9 wrote: »
    Neither of which are of much use for those businesses who still handle cash or use cheques.
    Are you sure that Metro Bank doesn't support businesses who still handle cash or cheques?

    It refers to such transactions in its schedule of charges for its Business Bank Account:
    https://www.metrobankonline.co.uk/globalassets/documents/customer_documents/business-and-commercial/businessbankaccount_importantinformationsummary.pdf

    EDIT: For some reason the MSE forum adds a space to the above link between the "d" and "f" of "pdf" which isn't in the link I posted.
  • 20SmthngSver
    20SmthngSver Posts: 512 Forumite
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    edited 24 September 2019 at 2:25PM
    Robin9 wrote: »
    Neither of which are of much use for those businesses who still handle cash or use cheques.

    We use Barclays - still free - and have to pay in cash via the Post Office following their branch closure. In theory I think PO restrict you to £300 in cash paying in but our local is happy to take any amount.


    Yeah I know. The OP was asking who offers free banking, not who does or does not allow cash and cheque transactions. I did say this.

    Re Barclays, you must have switched or be a start up with the free introductory period. We know people who had free business banking until they bought in charges and they said either upgrade the account or leave us. Unlike Santander, who after an uproar said existing Business customers would retain free banking but new customers would be charged. Barclays is awful for their charges and restrictions.
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