Business bank to current to avoid fees

[DiggityDo]

With great hassle I set up a business bank account 2 years ago. My free banking period is over and now they are hitting me with £5 monthly charge.

Right now my ltd company is doing nothing - no money coming in or going out. So it's really annoying to see money being syphoned off for absolutely not even one transaction.

When I am working, the norm would be maybe one invoice payment a month and and a few expenses via my debit card.

So I am really thinking about setting up a regular (non-business) current account and using that as the bank account for my limited company from now on to save on these fees.

It's been so long since I set up my business bank account, I can't remember if there was any particular reason I set it up rather than setting up a separate current account?

So if I set up a separate (non-business) current account for my limited company, totally separate from my personal one, given the low number of transactions in a year, would this be a problem in anyones eyes?
Thanks

 

[UK Contractor Accountant]

A company cant set up a non-business current account!

 

[DiggityDo]

I have both a Natwest Current acc & Business acc and I access them using the same password.

So it's always weird to me that I'm a separate entity to the company but Natwest didn't set up a separate login for the company? It's really annoying actually.

 

[scdirect]

Use something like TIDE banking, its an app, you only are charged fee's when you use the account etc.. Close down your high street account and save money this way.

Type in SCDIRECT when you sign up to get 3 months free transactions

 

[UK Contractor Accountant]

TIDE - it's an App?

Does that mean if you loose/break your Smartphone/ipad you are screwed until you get a replacement.

 

[TheCyclingProgrammer]

Tide are FCA regulated but they aren’t currently a bank:

https://www.tide.co/

 

[Darren C]

TIDE - it's an App?

Does that mean if you loose/break your Smartphone/ipad you are screwed until you get a replacement.

https://www.tide.co/community/search?q=lost phone

The problem with some of these app based accounts is that they often don't have a regular web-based interface. So, like you suggest, lose your phone and you are reliant on their 'customer service' which, likely, is going to be frustrating.

I can't speak for tide as I don't use it but a I do use an app called revolut (they also have a business account) which works on a similar basis. It works well until there is a problem such as a disputed transaction and then it doesn't. I only use now for trivial transactions, I wouldn't trust them with anything else.

 

[DiggityDo]

I can't speak for tide as I don't use it but a I do use an app called revolut (they also have a business account) which works on a similar basis. It works well until there is a problem such as a disputed transaction and then it doesn't. I only use now for trivial transactions, I wouldn't trust them with anything else.

Yeah, I've used Revolut for travelling and it works well when it works. But any time I've had problems, it's been hard work getting it sorted. Their customer support staff are some of the surliest customer support staff I've ever encounted! That said, their app is solid and I've never had any problems with that side of it.

 

[Gordon - Commercial Finance]

Do any of these app or web based platforms have relatively quick set up times? I find myself needing a new business account set up quite quickly and HSBC are taking their time.

 

[DiggityDo]

So I just contacted Revolut customer support asking about their business account and whether they have a separate app for it (as I want to keep it separate from my personal account with them).

They told me there is no app yet, it's "Coming soon".

I asked them if they had a timescale for it - by the end of this year? Early next year?

And they replied it was their "number 1 priority". So that could be anytime

 

[Darren C]

Do any of these app or web based platforms have relatively quick set up times? I find myself needing a new business account set up quite quickly and HSBC are taking their time.

Pretty much instant

 

[Darren C]

That said, their app is solid and I've never had any problems with that side of it.

I agree although I'd prefer it if there was also a regular website too.

I use fairfx for business expenses, where I need to use a card, and although the exchange rates are not so good they seem more of a solid set-up. Their app sucks by comparison but at least you also have website access and decent support staff.

 

[DontAsk]

I have both a Natwest Current acc & Business acc and I access them using the same password.

Same with Santander.

So it's always weird to me that I'm a separate entity to the company but Natwest didn't set up a separate login for the company? It's really annoying actually.

I find it really convenient. Transferring money between the accounts is really easy.

 

[DiggityDo]

I agree although I'd prefer it if there was also a regular website too.

App and website would be ideal. Any problems with app, go in via website. I don't know why it has to be one OR the other with these companies. Fidor bank have a very nice website and current account, but no app. All these "banking services" like Tide have an app, but no website access to your account.

Quite frankly, I'd settle for a good website and no app. If Fidor set up a business bank account and the fees were reasonable, I'd go for that.

I don't know what regulations make it easy for a start-up like Tide to run business accounts, but Fidor (a large German bank) can't, but no doubt it's the UK's monolith banks that are stopping it from happening. Probably with Brexit there will be even less choice. So I hope some of these companies get their act together quickly and get established properly before the UK paddles off into the middle of the Atlantic ocean on it's own...

 

[DiggityDo]

I find it really convenient. Transferring money between the accounts is really easy.

If someone else needs access to the company bank account, then they get to look at your personal finances. That's hardly an idea situation. Should be a completely separate login for a company account, if anything about a company being a distinctly separate entity actually means anything.

For a bank to treat a private customer and a companies finances as one and the same thing just shows what a load of nonsense it all is.

 

[STDFR33]

Use a personal accounts if the £5 charge bothers you.

There may be tax consequences of you doing so, however.