'Free' Business Bank Accounts

[Morgan]

I've never had a 'business' account in the 4 years I've been a sole trader, I've just used a personal current one set aside exclusively for the business. I'm now thinking ahead to next year where I'll may well want to take payments over the phone. Even if I don't go down that route, I just feel I ought to have an a proper 'business' account now I've done dipping my toe in the water. It's on my do to list.

Quite a few of the big boys offer 'free' business banking, Barclays, Santander etc. Are there any to go for or any to avoid? Does it really mean free? Does it have any bearing on taking payments over the phone ie do they go hand in hand depending who you bank with?

I am only a small business to unlikely to exceed any limits set in terms of transactions. The only thing I'd find maybe useful is the ability to bank cheques etc at the post office but seeing as they are phasing cheques out, I guess this element isn't crucial.

 

[14A]

Some 'free' ones need to have a min. monthly amount paid in, usually around the £1000 figure. Some limited your transactions too.

Last I heard was Santander did a good deal.

 

[TotalWebSolutions]

Have you considered joining the FSB (Federation of Small Businesses)? They offer free business banking via the Co-op, as well as many other benefits such as reduced Internet Merchant Account rates.

Simon

 

[No Nonsense]

Even if you don't join the FSB, the Co-op's Directplus will give you free business banking for 18 months as long as you keep your balance over £1000. I set up my business bank account with them because I've always been relatively happy with their service as a current account holder. The maximum usage figures should be enough and they'll let you deposit cheques at your local post office for an additional charge.

 

[Morgan]

Thank you guys. I didn't realise some had a minimum pay in/balance - I will have to be careful and check that.

Yes I've thought about FSB but not sure it's worth the benefit versus the cost at the moment. Something to consider though down the line maybe.

 

[ScottNelson&Co]

Have you considered joining the FSB (Federation of Small Businesses)? They offer free business banking via the Co-op, as well as many other benefits such as reduced Internet Merchant Account rates.

Simon

Thanks for the tip, but these reviews don't look too good: http://www.reviewcentre.com/reviews66246.html

Although it seems only unhappy customers write reviews:
http://www.reviewcentre.com/products294.html