Best Business Bank Account for UK small business

[Pete F]

Hi all,

I've been here before for information but have only just signed up so I can post my own thread.

I need to set up a business bank account for a new, UK Ltd company. I currently bank with Santander for business, but despite me being a customer for years they have given me a two week wait to speak with an advisor in branch to even begin the application process for the new company account. I've been perfectly happy with my banking over the years, but its a ridiculous wait when you consider many accounts are opened online in minutes.

I have set up a Mettle account, so I can operate and get Freeagent for free, but I just prefer the idea of a bank I can walk into if necessary, even though I very rarely do. Perhaps this is a bit silly these days, maybe I should just go with Starling? Mettle accounts are also not protected by FSCS. So, I'm looking for some advice as to which banks people think are the best for a small, ltd company? Does it even really matter? and ideally, will they be able to set the account more quickly than "some time next month".

Incidentally, my personal banking is mostly with HSBC, which I don't have any issues with but thought it sensible to keep them separate. Does this make sense or am I just being silly here too? Would there actually be advantages to keeping my business and personal accounts in one place?

Sorry for the rambling, and thanks in advance,
Pete

 

[MyAccountantOnline]

I do understand what you say.

I look after the accounts for new and small businesses and hear good and bad about most banks.

Do you have any specific banking requirements?

 

[Pete F]

I do understand what you say.

I look after the accounts for new and small businesses and hear good and bad about most banks.

Do you have any specific banking requirements?

Hi Nicola,

No particular requirements. Will mostly be used for BACS coming in and occasionally out. Frequent card payments going out.

 

[Newchodge]

Have you got any reasons why you want to be able to 'walk into a branch'? If not, then I would go with Starling. They are great apart from the need to run your account, mainly, from your smart phone and not your desktop.

 

[Pete F]

Have you got any reasons why you want to be able to 'walk into a branch'? If not, then I would go with Starling. They are great apart from the need to run your account, mainly, from your smart phone and not your desktop.

No real need for a branch. Just not keeping up with the times I suppose.
Having to do all my banking via an app rather than desktop would be a bit annoying though, but I'd probably get used to it...

 

[MyAccountantOnline]

Hi Nicola,

No particular requirements. Will mostly be used for BACS coming in and occasionally out. Frequent card payments going out.

I personally use TSB for much the same, no issues at all.

Starling is certainly becoming more popular with my clients and I'm not aware of any of them having significant issues with the service.

 

[MyAccountantOnline]

No real need for a branch. ......

It'll probably close and be converted into a charity shop or flats anyway.

 

[Pete F]

It'll probably close and be converted into a charity shop or flats anyway.

you got a point...

 

[Newchodge]

No real need for a branch. Just not keeping up with the times I suppose.
Having to do all my banking via an app rather than desktop would be a bit annoying though, but I'd probably get used to it...

You need to confirm, through your smartphone, before you can access on the desktop, and you need to confirm some desktop transactions through your smartphone.

 

[Pete F]

You need to confirm, through your smartphone, before you can access on the desktop, and you need to confirm some desktop transactions through your smartphone.

That's exactly right, thanks. I've had a look and applied last night. It looks like they use the app to generate a login code for desktop access, similar to the process I have with other banks. I think it's quite a good system. Seems pretty secure and easy to use.

 

[TeaRoomLady]

I have a Starling account and would recommend.

 

[cjd]

Doesn't matter much, they're all pretty crap. You just need two of the main ones so you can switch between them as you like and just live with their crap while you set them up.

 

[Pete F]

Doesn't matter much, they're all pretty crap. You just need two of the main ones so you can switch between them as you like and just live with their crap while you set them up.

To be fair, I've banked with Santander for business for years and found them pretty decent. The only issue I have is that I need to set up banking for a new company and they've given me a two week minimum wait until I can arrange a meeting in branch with one of their business account people. I therefore applied to Starling online a few days ago and had the account up and running within 24 hours.

 

[Talay]

They are all crap. They want their cake and to eat it and they want to charge you for being in credit but don't pay you any interest when they lend your money out at 30% interest to credit card folks. Barclays have pushed ours up from £6.50 a month to £8.50 which is peanuts but we have many accounts and that adds up to hundreds a month, for pretty much nothing.

I have Starling. Another wannabee set of shysters who wouldn't open an account for another company and asked me to make some childish video but I was applying on a PC where there are no video options. Its a bank, not a video game. I guess children making the "rules".

HSBC used to be decent, now as bad as the rest.

I may go to someone else. Its the inertia to move really.

All their business managers are either glorified tea ladies who know zero about real business or are snotty kids from ex polytechnics with a humanities degree and associated £100k debt who think their course at the poly and 6 months of brainwashing from their zen master can tell them how to interpret accounts or run a slide rule over a business plan.

 

[DontAsk]

To be fair, I've banked with Santander for business for years and found them pretty decent.

Same here. first as sole trader and then Ltd. Absolutely no issues.

They are all crap.

Rubbish.

 

[Ian J]

Incidentally, my personal banking is mostly with HSBC, which I don't have any issues with but thought it sensible to keep them separate. Does this make sense or am I just being silly here too? Would there actually be advantages to keeping my business and personal accounts in one place?

My personal banking was with First Direct and when I opened my business account it seemed natural to go with HSBC . That was 20 years ago and I have had no issues with staying with the same group

 

[Paul Kelly ICHYB]

Just stick with Mettle until you have an issue!

 

[CHUKTC]

Has anyone had experience with Handlesbank?

 

[Ozzy]

Not for my own banking but I do know the bank. More aimed at established higher turnover businesses, not so much your start up or small business (unless you have some sizeable startup investment)

 

[japancool]

Has anyone had experience with Handlesbank?

They won't give new companies accounts is mainly what I know. Other than that, they were supposed to be quite good last time I looked at them, which was about 6 years ago.

 

[Talay]

Has anyone had experience with Handlesbank?

Spoke to them a couple of times a few years apart and got near to taking things forward but I didn't like their tariff charges and couldn't be bothered to argue back in 2018 and again in 2021.

Monthly fees, fees for BACS payments, faster payments, standing orders, etc. all very old fashioned and trying to get a fee for everything but offering zilch interest to compensate.

My feeling was that if you needed more personal banking, had various financing issues and so forth, then they could offer a more bespoke set of facilities at a lower level than the bigger banks but the offset was this 1970/80s style "charge for everything" style banking and that didn't suit us.

They would be near the top of the list if we were reviewing banking because our requirements are getting more complex.

 

[CHUKTC]

Thanks guys for your replies. We too are finding the main high street banks seem unable to cope with our needs.

 

[Talay]

I should also add that the "new" banks seem linked the the Facebook generation with their childish requirements.

I tried to open a Ltd Co. account with Monzo. Nope, cannot. So I opened a personal account with them, still cannot open a business account.

Starling Bank - please upload a video of your face - I am on a PC you clown. Nope, we've locked down your account until someone in Toytown has a nappy change and feels well enough to leave his safe area and respond to your request to turn the effing lights back on.

Open one account with Starling, ok - then another for an identical business - nope. Why ? we won't tell you and we're taking our ball home, so there !

Run by bloody children thee places.

Starling now asking whether my company has changed what it does or they will turn the lights off again. WTF ?

WISE - pay £16 open an account in hours it seemed. OK, not for all transactions but for my cross border ones it is where I send funds from anyway.

If you take cash and need to bank it, I suggest you find the nearest Post Office where there is a personal bank you can use to deposit freely and set up a personal account you use only for depositing business cash. Just get it paid in for free and then transfer it across monthly. The main banks are all closing down branches and they charge X% to deposit cash. Heck, even your local Nationwide can supply some coins and so forth if you need them !

 

[Gettingthereslowly]

Handlesbank in my experience will only deal high net worth clients/businesses. Really need net assets of £1m plus.

Service wise, they are excellent. But as other posters have said, they charge for nearly everything.....got pay for that service somehow!

 

[Mark T Jones]

Handlesbank in my experience will only deal high net worth clients/businesses. Really need net assets of £1m plus.

Service wise, they are excellent. But as other posters have said, they charge for nearly everything.....got pay for that service somehow!

I know it's an old thread, but..

I used to keep a close eye on banks that offered good service, to recommend to clients who were prepared to pay for it.

Long term favourites were Allied Irish and Handlesbanken. I added Metro for a while

AIB have withdrawn from the UK.

Handlesbanken really weren't helpful to clients during lockdown- didn't sign up to BBL and were extremely tough on CBILS (I ended up guiding a few of their clients through Funding Circle)

Metro seem to have lost interest in small business.

I genuinely have no idea where businesses should ge for good service now

 

[Ozzy]

I genuinely have no idea where businesses should ge for good service now

This is relative really to the individual.
I bank with NatWest and cannot remember the last time I spoke to our relationship manager for the business or the relationship manager for my personal banking. They both email me a couple times of year to arrange a meeting and I always decline as have no need for anything.

I've found most new business owners these days just want an app on their phone to check their accounts to see if invoices been paid, or to send payments. They (usually millennials we spoken to) don't want to be bothered by the bank, don't want to speak to anyone. Instant messaging in the app is the preferred option to contact the bank, if they ever need to ask anything.

With that in mind, the digital bank providers are a "good service" for what the current generation of business founders are after.

 

[MBE2017]

With that in mind, the digital bank providers are a "good service" for what the current generation of business founders are after.

The big proviso IMO is many of these new banks are not covered for compensation since technically they are mostly companies rather than banks, people need to check and ensure they are happy with what is, and more importantly not offered.

I would recommend opening two accounts, use them both in case one is shut down or suspended unexpectedly as so many seem to find.

 

[Mark T Jones]

This is relative really to the individual.
I bank with NatWest and cannot remember the last time I spoke to our relationship manager for the business or the relationship manager for my personal banking. They both email me a couple times of year to arrange a meeting and I always decline as have no need for anything.

I've found most new business owners these days just want an app on their phone to check their accounts to see if invoices been paid, or to send payments. They (usually millennials we spoken to) don't want to be bothered by the bank, don't want to speak to anyone. Instant messaging in the app is the preferred option to contact the bank, if they ever need to ask anything.

With that in mind, the digital bank providers are a "good service" for what the current generation of business founders are after.

The reality is that most micro businesses don't need service- just basic transaction processing and perhaps a specific specialism such as foreign currency transactions.

There are however many businesses who need specific, periodic support, often on a transactional or cyclical basis, and the ability to discuss with someone who actually has a clue is a huge benefit.

Historically my litmus test was 'how quickly can your bank agree an emergency £10k overdraft. Post crash that changed to 'will anyone actually get back to you?'

I no longer have any idea which bank has people who can actually answer specific question, let alone make decisions - can apps do this?

 

[Ozzy]

I no longer have any idea which bank has people who can actually answer specific question, let alone make decisions - can apps do this?

That, sadly, is becoming a commodity of the specialist banks. The main stream banks (both digital, and those that used to be on the high street before they became wine bars) are all moving towards self service wholesale service.

 

[japancool]

Historically my litmus test was 'how quickly can your bank agree an emergency £10k overdraft. Post crash that changed to 'will anyone actually get back to you?'

Handelsbanken used to be able to do this, but they don't deal with new businesses.