Finding free banking - Shared freehold management company

Revavila · 18 July 2018 at 10:42AM

I am one of 5 flat owners in a converted block, once the last flat was sold the freehold transferred to a management company (Ltd) to which we have all taken up directorship. Previously the developer did the banking through his wider business, So we now need to set up a bank account to take in our service charges and from which insurance and communal costs will be paid. The problem is that since it has been set up as a Limited company banks are saying we have to have a fee paying account, even though we are only using it to manage the maintenance and not a trading company.

Where are there banks that offer accounts that would offer free banking for people in our situation? Or will we just have to suck up the fees?

agrinnall · 18 July 2018 at 1:20PM

You might find one that will allow you an account without charges for a limited time, but you'll eventually have to pay for it.

jonesMUFCforever · 18 July 2018 at 6:21PM

So why was it set up as a Ltd company (other costs for submitting accounts?).
The charge is what £6 per month spread over 5 people so not really that expensive.
If it was set up a club or society then most banks would let you have a free account.

xylophone · 18 July 2018 at 6:58PM

https://www.starlingbank.com/business-account/

Is the above of any interest?

pochisoldi · 19 July 2018 at 9:03AM

HSBC give free banking for a period, followed by £5.50/month thereafter.
However in my experience their business banking is characterised by an obsession with filling in forms, lack of clear information on how do do basic activities.
You should also expect an obsession with collecting personal information beyond that actually required to "know your customer", and for a very hard time if any of the directors have dual or non-UK nationality. This applies to non-signatory directors. They want information on all directors!

Of course one way around this is not to register any director who has US citizenship at company's house, and not register them as a signatory to the account and have them act as a shadow director...

PochiSoldi

jonesMUFCforever · 19 July 2018 at 8:21PM

pochisoldi wrote: »

HSBC give free banking for a period, followed by £5.50/month thereafter.
However in my experience their business banking is characterised by an obsession with filling in forms, lack of clear information on how do do basic activities.
You should also expect an obsession with collecting personal information beyond that actually required to "know your customer", and for a very hard time if any of the directors have dual or non-UK nationality. This applies to non-signatory directors. They want information on all directors!

Of course one way around this is not to register any director who has US citizenship at company's house, and not register them as a signatory to the account and have them act as a shadow director...

PochiSoldi

Won't they want info on the shadow director?:D

Finding free banking - Shared freehold management company

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