Bank charges

[steveblack]

Hi all

I hope someone can offer advice on the following:

I have a retail business that I opened in October 2007. My bank provided me with 1 year free banking. I approached them for an extension to my free banking. This was rejected.

For the last 27 months I have been paying an average of £140 per month for my business account. My business has a turnover of under £250000 per year. Last week I found out that my bank offers a fixed £55 fee to business customers that have a turnover of under £250000. I approached my business manager who confirmed that I am eligible for this package. Had I known this previously, I would have saved approx £85 per month over 27 months. I therefore calculate that I could have saved £2300 in banking fees.

My question to the forum is - am I responsible for ensuring I have the correct bank account or does the bank have a responsibility to ensure I am getting the best/most appropriate business rates?

If the latter is correct, am I legally entitled to request a refund?

Thanks in advance for your feedback. I don't want to go in guns blazing if I'm not in the right

Steve

 

[Gillie]

No, you will find that with anything the onus is on you to make sure you are paying the correct tariff and have the correct bank accounts set up.

If you had a half decent business bank manager they might have flagged this up for you, but as with your utility bills, its totally up to you to ensure you are getting the best deal going.

 

[vikki1975]

I have a convenience store and all cash turnover aswell, I just keep moving to the next free banking deal with which ever bank is offering one. Unless you are wanting to build up a relationship with a bank for finance or such like its the cheapest way to go.

I bank £14k cash per week and charges would cripple me if I had to pay them.

 

[steveblack]

Thanks for both your replies

 

[davidakerr]

Federation of Small Businesses members enjoy Free Banking without time limit. There is no need to keep changing Banks every time the Free Banking period comes to an end, and FSB Business Banking pays their members an annual Bonus for using their Banking Service............no Bank charges and the Bank pays you!!!

 

[CDB]

Why not change banks and get another 18 months free banking?!

 

[davidakerr]

Carl..........is this typical of the advice you offer clients............just keep changing Banks every 12/18 months to get Free Banking?

 

[Page]

Federation of Small Businesses members enjoy Free Banking without time limit. There is no need to keep changing Banks every time the Free Banking period comes to an end, and FSB Business Banking pays their members an annual Bonus for using their Banking Service............no Bank charges and the Bank pays you!!!

Which bank is this with ?

 

[HFE Signs]

I would expect its up to you to find out the deal, the bank won't offer it to you unless you ask... remember they want to make money too, I would guess you won't get a refund

 

[davidakerr]

Originally posted by Page "which Bank is this"

FSB have an arrangement with the Co-op Bank that all FSB Members receive Free Banking (subject to status)without time limit.

 

[Anglia Finance]

Ideed the Co-op do offer free banking for FSB members but this only covers paying in upto £4K cash per month. Over this they will charge 40p per £100 paid in. Also with this you won't get a bank manager but by the sounds of it your bank manager has not being actively working with you.

 

[davidakerr]

originally posted by Anglia Finance "but this only covers paying in up to £4k cash per month"..........so what's the problem with that? I know of Banks who charge 65p per £100, so banking £4k per month means a charge of £26.00 per month. The Co-op then charge 40p per £100 for deposits over £4k............that's OK with me.

It's a lot more stable than changing Banks every 12/18 months.

 

[Anglia Finance]

originally posted by Anglia Finance "but this only covers paying in up to £4k cash per month"..........so what's the problem with that? I know of Banks who charge 65p per £100, so banking £4k per month means a charge of £26.00 per month. The Co-op then charge 40p per £100 for deposits over £4k............that's OK with me.

It's a lot more stable than changing Banks every 12/18 months.

I wasn't disagreeing with you, I think a stable banking relationship is better than changing repeatedly. What I was pointing out that in this scenario it is unlikely that he will receive free banking. With charges that high I suspect there is a lot of cash going through which is well over and above the 'free banking' terms offered by the FSB Co-op deal and simpy offering my advice to look into in more detail.

 

[Chris Ashdown]

Why not just send a letter your bank manager and tell them you are disapointed they have not advised you of this reduced rate and feel you have been unfairly treated and that the savings in money would have enabled you to grow much faster than it has, and is there any way they would correct the situation preferably back dated as they have failed to notify you of this important information, when they pledge to help and assist small businesses

If you write they have to respond and if you write "Private and confidential" on the envelope it will get to the manager not a lower level business advisor, Preferable to ring up and ask name of the branch manager and use this.

Do not phone or you will get fobbed off as there will be no record

Nothing to lose

Good Luck

 

[davidakerr]

Apologies Anglia Finance if I misunderstood your post, but sometimes on this Forum there are a number of people peddling their wares to benefit their own pockets, rather than trying to help fellow business people benefit from others experience.

 

[MyAccountantOnline]

I agree entirely with Chris a letter to the bank is how I'd approach it.

I'd be really surprised if you word it well if you dont get something from it.