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Best Business Bank account for a very small company

Discussion in 'Accounts & Finance' started by CeriA, Nov 22, 2010.

  1. CeriA

    CeriA UKBF Newcomer Free Member

    Posts: 13 Likes: 0
    Hi,

    I have recently launched my new handmade soap business and would like some advice on the best (free?) business account to go for. I am a sole trader with v small predicted turnover so do not want to be paying out a fortune on charges for all account activity.
    I have done some research and Santander are catching my eye, as they are free and in comparison to the other major banks seem to have everything I am after including online banking, fee free deposits by cash & chq, debit card etc. I am after an account I can also use in conjunction with a PDQ machine to enable me to process sales out and about. Would anyone recommend them to someone in my situation? do you have any other suggestions / advice as to what is good to go for?

    Sorry for the 20 questions...I thought I'd try and get it all in one post
  2. talkinpeace

    talkinpeace UKBF Regular Free Member

    Posts: 875 Likes: 140
    Coop with the FSB is a good deal
    or what was the A&L one - but the Santander changes look a tad ominous.
    PDQ - again, check out the FSB deals or the NMTF if you do fairs
    • Thanks Thanks x 1
  3. davidakerr

    davidakerr UKBF Regular Free Member

    Posts: 561 Likes: 69
    FSB deal will cost you £120 per annum for membership but weigh that against the cost of cheaper deal for Mobile Terminal, Free Banking, Free Legal and Tax advice and representation, Discounted Telephone and Broadband deals etc etc.
  4. CeriA

    CeriA UKBF Newcomer Free Member

    Posts: 13 Likes: 0
    Hi Talkinpeace, thank you for your reply. I'm new to this forum and don't quite get the abbreviations, what is FSB & NMTF please?
  5. talkinpeace

    talkinpeace UKBF Regular Free Member

    Posts: 875 Likes: 140
  6. CeriA

    CeriA UKBF Newcomer Free Member

    Posts: 13 Likes: 0
    Aha, thank you :O)
  7. MyAccountantOnline

    MyAccountantOnline UKBF Regular Full Member

    Posts: 9,245 Likes: 1,829
    I havent used them myself but many of our clients now use Alliance & Leicester and in the main seem fairly pleased with them, apart from the time it takes to get accounts opened.

    A lot depends on whether you want a manager in a local branch or whether you are happy operating online.
  8. CeriA

    CeriA UKBF Newcomer Free Member

    Posts: 13 Likes: 0
    Hi Nicola J,

    Thank you for your comments,
    I am leaning towards A&L or Santander as it is now. I'm happy to do online banking for now, so hopefully it'll be fairly quick, I'll drop them a line.
  9. edmondscommerce

    edmondscommerce Magento + PHP Expert Full Member - Verified Business

    Posts: 3,438 Likes: 590
    I would question if you really need a business account at this stage

    personal accounts are totally FOC and are still perfectly functional bank accounts!

    sorry just saw the PDQ bit, that scuppers it..
    Last edited: Nov 23, 2010
  10. MyAccountantOnline

    MyAccountantOnline UKBF Regular Full Member

    Posts: 9,245 Likes: 1,829
    In this case the personal account isnt an option as you mention due to the PDG but to add if someone is going to use a non-business bank account for a business I'd always recommend having a second/seperate account used solely for business - it makes accounting and monitoring cashflow etc so much easier.
  11. allington-marketing

    allington-marketing UKBF Contributor Free Member

    Posts: 178 Likes: 30
    Hi
    When I set my business account up in June, Natwest were doing them free for two years - not costs at all. Not sure if that's still running though
    t
  12. edmondscommerce

    edmondscommerce Magento + PHP Expert Full Member - Verified Business

    Posts: 3,438 Likes: 590
    yep good advice
  13. CeriA

    CeriA UKBF Newcomer Free Member

    Posts: 13 Likes: 0
    Indeed, things are starting to blurr at the edges. I just want to keep it all very clear as to how much is coming and going.
  14. CeriA

    CeriA UKBF Newcomer Free Member

    Posts: 13 Likes: 0

    Hi,

    Nat west offer is still on but their other charges gave me the colly wobbles. Santander are free for life with no charge for depositing up to 100 chqs, £3000 cash. This is what is drawing me in, how can i resisit.:redface:
  15. davidakerr

    davidakerr UKBF Regular Free Member

    Posts: 561 Likes: 69
    The deal through the FSB/Co-Op Bank allows you Free Banking without time limit; no restriction on the amount of cheques you bank or write; £4000 cash per month and they pay you a dividend at the end of each year of £25.............beats the Santander deal!!!
  16. CeriA

    CeriA UKBF Newcomer Free Member

    Posts: 13 Likes: 0
    Thank you for your reply, I read on the FSB site it costs £125 to become a member, even this amount is a big outlay for me right now. I'll have another look though, no harm to do some double checking
    ;)
  17. talkinpeace

    talkinpeace UKBF Regular Free Member

    Posts: 875 Likes: 140
    My husbands company account is the Alliance & Leicester deal.
    They are currently rebranding it as Santander.
    Luckily I've only rarely had to use the helpline for his business as my experience of it for other businesses is NOT GOOD.
    I'll watch and update with any interesting changes...

    Co-op online banking is pretty poor. You cannot print out forward transactions and cannot get a list of all live direct debits and standing orders
    and the dongle thing is a PITA
    but it is free I guess!
    And yes, the divi is useful to buy wine for the christmas lunch !!

    by the way, the card machines are called PDQ because when Barclays brought them out in the 90's they were Pretty Damn Quick and the name stuck.
  18. edmondscommerce

    edmondscommerce Magento + PHP Expert Full Member - Verified Business

    Posts: 3,438 Likes: 590
    learn something new every day
  19. davidakerr

    davidakerr UKBF Regular Free Member

    Posts: 561 Likes: 69
    CeriA...............I suppose you need to consider what works out the cheapest for you.

    Membership to the FSB costs £120 per Annum plus a one off £30 Registration Fee. This can be paid over a 6 month period. Consider the cost and rates of a Mobile Terminal with FSB Membership as opposed to the cost direct with the Bank. I have never had any major problem with the Co-op, but ultimately the decision is yours.
  20. Rookery

    Rookery UKBF Contributor Free Member

    Posts: 215 Likes: 38
    When I started my business I went for a free 1 year business account with HSBC with whom I'd had a personal account for 25 years. When the 1 year deal expired I transferred my allegiance to Santander, attracted by the free business banking for life. It works fine for me. I operate it solely from an ATM.