Business Bank Account Recommendations

[Rpl85]

I'm soon to create a Ltd. company from scratch (no previous trade as sole trader or anything). As part of this I will want to open a Business Bank account.

All of my sales will come through online payment via my website.

What are your views on the best Business accounts for startups right now?

Many thanks.

 

[faradaykeynes]

If you join FSB you get free banking for life

 

[Jayser100]

Santander, also free banking. Who needs to visit a branch when you have the internet?

 

[MyAccountantOnline]

I'm soon to create a Ltd. company from scratch (no previous trade as sole trader or anything). As part of this I will want to open a Business Bank account.

All of my sales will come through online payment via my website.

What are your views on the best Business accounts for startups right now?

Many thanks.

I personally don't think any provide outstanding service.

Have a look at some old posts here - it's a question which is often asked.

 

[TODonnell]

People forget that banks are in business to make money ... from their money!

If you add in that they want to cut costs and that they all have mere operatives at the desks when you go in, it's much easier to understand the mediocre service.

I found Santander to be a good starter. If you don't expect much, you won't be disappointed. You are dealing with Mammon, after all.

We also form companies amd offer mail forwarding: http://www.registeredaddress.co.uk/registrationoptions.php

 

[jon.jenkins@smartaccounta]

The general consensus with most banks is that they are as bad as each other. So you need to go with the one that you feel comfortable that you can trust and will have access to your business relationship manager as this is a very important relationship.

I point most start ups in the direction of NatWest because I have a great relationship manager they offer the 2 years free banking and I think their online banking and smartphone app is better than the rest. When the 2 years free banking is up you can switch to their electronic tariff which means you will probably end up paying nothing or very little.

I have many clients who have had bad experiences with both Santander and the FSB offering. It would appear you get what you pay for.

 

[faradaykeynes]

Jon , i was thinking to move to FSB co-operative FREE banking for life? is it not good?

 

[jon.jenkins@smartaccounta]

In a word no. I have had a few disgruntled clients but that is not to say that it is not for everyone but I am yet to hear a good recommendation.

 

[BusyVids]

Santander offer free business banking, access to your account online and through the ATMs but no over-the-counter service. Support is okay if you can understand the Scottish accents. Been with Santander for 18 years with no problems.

 

[jon.jenkins@smartaccounta]

The only real issue I can see with Santander is that they do not have any business dedicated managers so you deal with the same person for your business that would look after personal accounts and for me that just does not work.

 

[talkinpeace]

My biggest bugbear is that the bulk of my clients pay by cheque (they are required to by law) and as banks are more geared to electronic stuff, cheques can take up to 8 days from when I receive them to being cleared funds.

 

[spicetheice]

I'm soon to create a Ltd. company from scratch (no previous trade as sole trader or anything). As part of this I will want to open a Business Bank account.

All of my sales will come through online payment via my website.

What are your views on the best Business accounts for startups right now?

Many thanks.

I would go with either Barclays or HSBC. These are good banks with exclusive help and support for start-ups. Always consider the credibility of a bank before putting your money in there, unless its your own bank

Cater Allen and Cumberland also have some good options available. But my selection will be globally known banks.

 

[David A]

My biggest bugbear is that the bulk of my clients pay by cheque (they are required to by law) and as banks are more geared to electronic stuff, cheques can take up to 8 days from when I receive them to being cleared funds.

Then for cheques, if you use one of what used to be called the Big Four, you will be stung pretty hard in charges for depositing cheques - once any start-up free banking expires. The upside is that they do operate a true 3 day clearing cycle.

FSB's offering of the co-op bank account can be good - though getting one can be hit or miss if they think you might be in breach of their 'ethical banking policy'.

Santander, unlike Alliance and Leicester that they took over, no longer offer free banking - they go for a monthly fixed fee. They also abuse the cheque clearing cycle to their own ends. For example, we have two separate businesses both with Santander accounts. We wrote a cheque from one to the other and after 3 days it was debited the first business, but another two days to 'clear' so we could draw on it. Also, at the end of each day they tot up the debits before the credits (even Faster Payment credits and cash). If you don't have enough funds before they apply the credits they will charge you £35 as a 'potential unauthorised overdraft fee'.

Look further afield though. Enquire with Cater Allen and ING as well as others.

 

[christian_d]

Then for cheques, if you use one of what used to be called the Big Four, you will be stung pretty hard in charges for depositing cheques - once any start-up free banking expires.

Once the free banking expires, open up a savings account in the businesses name with the same bank. Barclays only charge to deposit cheques in the current account. Then transfer electronically when cleared, all free.

 

[Didleysquat]

I was just thinking i would open up a business saver account with Santander to save my VAT in and had a look at the charges and interest rates web page. As david pointed out above Santander now charge the following on current accounts.

Business Current Account
£7.50 per month (with £1,000 monthly cash deposit limit)
£12.50 per month (with £3,000 monthly cash deposit limit)
£20 per month (with £5,000 monthly cash deposit limit)
Start-up (12 months' fee-free banking)
Start-up Extra (18 months' fee-free banking)

We already have our business current account with them and when we signed up it was sold as 'free banking for life' so i hope they mean that.

As for Santander, the reports of appalling customer service are legitimate, they have pulled some amazing unfathomable stuff on us, real disgraceful behaviour that would put their systems and procedures in the worst light possible.

I understand they had the change from Abbey and intergration with b&b, a&l, rbs (branch network) to deal with but did a pigs ear job at best.

There are no branch facing services (believe me this is a positive) and now the call centres are back in scotland (imo they make the best CS people) things have improved.

What this all means is, if you do a lot of business via bacs, electronic payments, not much cash and a few chq's then when it all runs smoothly its a good'un, just pray it never goes wrong. Now its not free though, mmmm elsewhere may add up better.

 

[talkinpeace]

I'm with the Co op so get free banking.
My bugbear is that cheque clearance has definitely slowed down in the last couple of years because banks hate them.
With a SAntander business account, you are not allowed to pay cheques in at a branch. How daft is that.
And if you live anywhere rural, the distance to ANY bank branch can be a fair bit of petrol.

Some day the law will be changed about compulsory cheque payments, but I'm not holding my breath.

 

[timothy88]

try natwest

 

[mcjohn]

You should find out a bank that cut less costs for service. However, if you go through a BBB accredited bank or financial institutions for business account then it will be beneficial for you. In starting you should use single account but as things goes better you can use more than one account for this prospective.

 

[LIKHAURI]

hello,

I'm from Georgia (former soviet republic), the banking system is quite improved there. So the rules and banking practice is similar as in many European country and if you are a "start up" there is no deference concerning on opening business account. Int banking is a very flexible method to govern your account, remote banking some times is requiring payment, but ofter you start turnover on you account it'll become free (int banking charge) But you will always pay on money transfer, or money withdrawal costs, though after you get a vip status (depends on turnover volume) you will pay much less, perhaps nothing.
thanks for watch.

 

[bdw]

With a SAntander business account, you are not allowed to pay cheques in at a branch. How daft is that.

AFAIK you can pay cheques into any post office. Otherwise you can post them.

 

[David Griffiths]

My biggest bugbear is that the bulk of my clients pay by cheque (they are required to by law) and as banks are more geared to electronic stuff, cheques can take up to 8 days from when I receive them to being cleared funds.

Out of interest, what kind of clients are legally obliged to pay by cheque?

 

[Jet Virtual]

We use HSBC and are very happy with their service. So far ....

Best of luck!

Daniel

 

[talkinpeace]

David

Parish councils and all other bodies governed by the Local Government Act 1972 - there are around 10,000 of them
it will only take an SI to change the wording but until the legislators get their act together ....

 

[cromiem]

The FSB offering is poor, if they still use the co-op acceptance is very low I got declined with a 3 year old ltd company in profit.

 

[cromiem]

The general consensus with most banks is that they are as bad as each other. So you need to go with the one that you feel comfortable that you can trust and will have access to your business relationship manager as this is a very important relationship.

I point most start ups in the direction of NatWest because I have a great relationship manager they offer the 2 years free banking and I think their online banking and smartphone app is better than the rest. When the 2 years free banking is up you can switch to their electronic tariff which means you will probably end up paying nothing or very little.

I have many clients who have had bad experiences with both Santander and the FSB offering. It would appear you get what you pay for.

Thanks what is the electronic tariff called? I am supposed be put on the standard tariff with Natwest in July which is unacceptable, I would like to know more about this electronic tariff.