Business account

Naaz616

My brother-in-law and I are about to start a new business and have just registered a limited company. We now need advice on opening a business bank account and what factors to consider.

To give you some context, we need to deposit some initial funds, and once we start operating, we expect to receive cash payments from clients. In this case, does it matter which bank we choose? Are there any tricky aspects we should be aware of?

Hoenir

Suggest a bank where there's a local branch if you've physical cash to deposit frequently. 

lr1277

The Post Office also accept cash deposits for some business accounts. But for some banks they will deal with money for personal accounts but not business accounts. You need to do your research before choosing.

If memory serves not all of the newer fintech type banks either use the Post Office or even accept cash at all. Again more research required.

Edited to add: If you think you might like to deposit cash at a Post Office, you can do one of 2 searches:

Google:

Post Office business account - should take you to a page where from a dropdown you can select a bank and they will list the services they provide for chosen bank

Or just google: Post Office [Bank name]

Then go to the post office webpage and not the bank webpage.

2nd edit: Though if you need to keep a cash float for your business, I don't know whether the Post Office would provide that service. In which case it might be better to use a branch of your chosen bank.

DullGreyGuy

Naaz616 said:

My brother-in-law and I are about to start a new business and have just registered a limited company. We now need advice on opening a business bank account and what factors to consider.

To give you some context, we need to deposit some initial funds, and once we start operating, we expect to receive cash payments from clients. In this case, does it matter which bank we choose? Are there any tricky aspects we should be aware of?

Business banking isnt free, though banks often include an introductory period. Cash tends to attract the higher fees, Starling for example charge 0.7% on cash deposits for businesses with a minimum fee of £3 per deposit and coins must be sorted and in full money bags. 

Barclays charge 60p per £100 or part of so a bit over 0.6% but no mention of a minimum fee however after 2 years you are paying them £8.50/month on top of that. 

If you can avoid cash and get people to do bank transfers etc then banking can be much cheaper. 

Dont be tempted to put the cash into your personal account and then transfer it to the business account. 

Naaz616

Well, thank you all for nice advices, I already checked post office web and found very good information about their Business banking services, Assuming I need to do more research to get more information!

Futuristic

You will need to look into a high street bank as opposed to the "free" digital ones like Monzo etc.

Most usually have a free 12-24mo banking period for new companies but you will need to check the terms for cash fees.