What to look out for in a new business bank account?

[mrka]

Hi, I am wanting to open a new business bank account for a newly formed Ltd company.

I want to keep it simple, don't need any bells or whistles, keep costs low. It's a simple middle man business that facilitates factories to small and larger businesses needing said services.

Turnover will be under 80k per year, but I will become voluntarily VAT Reg as to 'keep up appearances' as such.

I should be getting confirmation from companies house this week and will have to head into town, or is online an option?

 

[Porky]

During the last 30 years I have probably Been with most banks for various businesses and frankly they are all much of a muchness, they are all crap, “umbrella’s in the sunshine”.

You either need to bank millions with them or owe them millions before you get any decent service.

I would probably recommend trying one of the newer entrants to the market. I am big fan of metro bank myself however they have feed issues with Quick Books they haven’t fixed which means you have to manually export data and update rather than it being automatic. But outside of that I really like them and they open Sundays. The fees are very reasonable but that’s on a significantly higher turnover.

Starling bank has some great reviews and I know a lot of businesses that really like them. As a start up based on your turnover in the first year they might be your best bet?

If I was looking for an account as a start up I would probably look for:

* Free banking in the first year
* Good online access
* compatibility with my accounting software (QB,XERO, Sage etc)

Unless loans / Interest / Cash deposits / international payments are a consideration the above would be my priority requirements.

Good luck

 

[Darren_Ssc]

I would echo the point about all banks being less than great but I would recommend you pick a bank that has a branch near to where you are. The reason being that at some point you are going to need more than a call centre or chat bot can offer and most branch staff are nice and helpful. If your bank of choice has no branches then you are at the mercy of luck.

I have recently had a small problem with Barclays and their saving grace was branch staff who actually gave a **** and did what was necessary to get the problem fixed.

A fancy coloured card and mobile-friendly features are gimmicks you'll soon get bored of.

 

[mrka]

During the last 30 years I have probably Been with most banks for various businesses and frankly they are all much of a muchness, they are all crap, “umbrella’s in the sunshine”.

You either need to bank millions with them or owe them millions before you get any decent service.

I would probably recommend trying one of the newer entrants to the market. I am big fan of metro bank myself however they have feed issues with Quick Books they haven’t fixed which means you have to manually export data and update rather than it being automatic. But outside of that I really like them and they open Sundays. The fees are very reasonable but that’s on a significantly higher turnover.

Starling bank has some great reviews and I know a lot of businesses that really like them. As a start up based on your turnover in the first year they might be your best bet?

If I was looking for an account as a start up I would probably look for:

* Free banking in the first year
* Good online access
* compatibility with my accounting software (QB,XERO, Sage etc)

Unless loans / Interest / Cash deposits / international payments are a consideration the above would be my priority requirements.

Good luck

Thanks.
I had a retail sore 10 years ago, was a sole trader and I opened a business bank account.. They ripped me off big time! Fees.... Fees... more fees..

I don't need fees! Happy to pay my way but not fees for breathing and eating.

It is a requirement isn't it for a Ltd co to have a business bank acc... not only to have your name on your invoice but generally required?

Starling, Monzo, Metro... All the same yes?

 

[Bob Morgan]

"What to look out for in a new business bank account?" The Bank might close the account without warning! - You need a Plan B!

 

[Mr D]

I have had several business bank accounts.
Probably the cheapest I have had was Santander, 7.50 a month. First year free.

The services I am after usually mean internet banking and ease of paying bills. Cash is not a priority but sometimes get out or bank petty cash.

Was with Lloyds tsb for a time and having to use a machine to get a code every time I wanted to do something was annoying. Could take half hour to pay bills each month.
NatWest was ok except idiotic business banking staff and the charges could be up to 20 quid a month for my usage.

 

[Mark T Jones]

I'd say most banks do the basics Ok - some cheaper than others.

The differentiation comes in when you need something beyond just electronic transfers in and out.

I've been with Lloyds many years without hitch - until I needed to make some changes to mandate - when they turned into a nightmare They are also incapable of stopping sending paper statements & receipts, which is absurd in this day & age.

Metro & Monza have slightly uncertain futures, Personally I'd go with either one of the old, big names (santander seems a favourite) or risk Tide/Starling

 

[Deleted member 325090]

My Ltd company and my wife's business both bank with Starling after being with HSBC for many years.

Far better service, nice and simple to setup, answer queries promptly and they don't charge us £6.99 per month for keeping our account tens of thousands in credit, which is nice.

 

[gpietersz]

TSB has two years free banking and reasonable charges after that.

Branch network a bit thin, and they are reducing cashier numbers, so may be a problem if you need to deposit cash (you can do so at a post office though) which we do not need to.

 

[HostXNow]

I will add my vote for Starling. Excellent for Personal and Business. The App is quality.

 

[MyAccountantOnline]

Hi, I am wanting to open a new business bank account for a newly formed Ltd company.

I want to keep it simple, don't need any bells or whistles, keep costs low. It's a simple middle man business that facilitates factories to small and larger businesses needing said services.

Turnover will be under 80k per year, but I will become voluntarily VAT Reg as to 'keep up appearances' as such.

I should be getting confirmation from companies house this week and will have to head into town, or is online an option?

I'm an accountant looking after new and small businesses so see clients using many different banks. I hear good and bad about them all.

Personally I've not been into a bank branch for years and have very basic banking requirements for my accountancy practice, it's all done online. I used to use Barclays, didn't have any major issues with them, and now use TSB and again had no problems with them.

It might be worthwhile looking at Natwest, Royal Bank of Scotland or Mettle to get FreeAgent free. Its very good accounting software and deals very well with VAT. If you dont get a discount via an accountant, and normally pay full price, that will save you over £300 in your first year. I have quite a few clients using it now.

 

[Numerix Accountancy]

Hi, I am wanting to open a new business bank account for a newly formed Ltd company.

I want to keep it simple, don't need any bells or whistles, keep costs low. It's a simple middle man business that facilitates factories to small and larger businesses needing said services.

Turnover will be under 80k per year, but I will become voluntarily VAT Reg as to 'keep up appearances' as such.

I should be getting confirmation from companies house this week and will have to head into town, or is online an option?

Hi,

Most of the high street banks will offer 12 months to 18 months free Banking.
Worth looking at the monthly charge after this period.

I think at the moment HSBC Business Banking works out best, if all your payments in and out are electronic.

In terms of the free ones, other than Tide, have a look at Coconut.

It has really good features, in relation classifying transactions, and lets you generate Invoices.

Regards

 

[Paul Kelly ICHYB]

The things to look for are the same as most things - it does what you want for the price you are prepared to pay!

 

[Sky Racer]

Natwest are very good. Not too expensive, online site is good and their banking app is excellent. No issues with them or the service at all

 

[ExoPaul]

My daughter set up with Monza online. Dead simple, really fast, they are incredibly friendly on support. No issues so far.
Not sure if they match your needs but for simplicity its worth a look.

She originally went to Barclays, they signed her up, she filled all the forms, and then they decided to give her a personal account instead of a business one because "our online support team believe it would suit you better at this present moment in time"........ except in their small print any personal account used for a business will be shut down for breaking the terms of service.

So she went for an online company instead.

While I understand another persons reply suggesting that banks like it are on dodgy ground, remember that they are guaranteed under financial banking laws should they go broke, and if you are making less than £80K a year, then you are probably going to find the guarantee covers most if not all of a years worth of revenue sat in your account.

 

[fisicx]

Been with NatWest for years. It’s just a tool to move money. Costs me virtually nothing.

 

[Darren_Ssc]

She originally went to Barclays, they signed her up, she filled all the forms, and then they decided to give her a personal account instead of a business one because "our online support team believe it would suit you better at this present moment in time"........ except in their small print any personal account used for a business will be shut down for breaking the terms of service.

I used a personal account for 5 years before opening a business account. In reality, they don't do anything if you're a sole trader. I opened a business account a couple of years ago, get worse service because the business side of things is years behind the personal alternative and pay for the privilege.

As an example, changing address via the personal account takes 30 seconds. Doing the same with my business account took 6 weeks and a claim for damages because if your new address doesn't match the royal mail database it causes chaos with their computer system that's held together with sellotape.

That said, I have an account with Monzo for travel and small transactions. Yes, their online offering is slick but I still wouldn't hold more than £100 in it.

 

[Bob Morgan]

Been with NatWest for years. It’s just a tool to move money. Costs me virtually nothing.

I would not advise complacency, based upon continued mediocre performance and mere cost. NatWest/RBS will be closing many of their Branches. Accounts will then be absorbed by a District Branch - And, then the 'Fun' really starts!

Rather than cost you 'Virtually Nothing' it could cost you 'Dearly!' - Just on the cusp of a rather large payment arriving! PLAN B: More than one Business Account! - Spread the Risk!

 

[fisicx]

I haven’t visited a bank in years. They could close all their branches tomorrow, wouldn’t make any difference to me.

 

[Bob Morgan]

Wouldn’t make any difference to me.

Even when your account has been closed, without notice?

 

[fisicx]

Even when your account has been closed, without notice?

How would going into my local NatWest fix this?

If there is a problem I just pick up the phone.

 

[Bob Morgan]

How would going into my local NatWest fix this?

If there is a problem I just pick up the phone.

And it is answered in India?

 

[fisicx]

And it is answered in India?

Answered in the UK.

Many years ago I had a problem with my business bank card. I went to the branch and they couldn’t help. All they could offer was a courtesy phone to talk to the online team. I’ve never been back.

 

[Darren_Ssc]

And it is answered in India?

Branch staff are the last refuge when 'computer says no'. UK call centre staff will just hang up on you if your query takes them over the two minute target time, their Indian counterparts will spend an hour apologising first.

 

[Bob Morgan]

Answered in the UK.

Many years ago I had a problem with my business bank card. I went to the branch and they couldn’t help. All they could offer was a courtesy phone to talk to the online team. I’ve never been back.

Was that before the 'Relief of Mafeking?'

 

[fisicx]

Branch staff are the last refuge when 'computer says no'. UK call centre staff will just hang up on you if your query takes them over the two minute target time.

Not in my experience. NatWest call centre staff were helpful and worked hard to resolve the problem.

 

[Bob Morgan]

Not in my experience. NatWest call centre staff were helpful and worked hard to resolve the problem.

They might have 'Worked Hard' but did they resolve it?

 

[Bob Morgan]

"What to look out for in a new business bank account?" The Bank might close the account without warning! - You need a Plan B!

We appear to have moved away from my argument!

 

[fisicx]

They might have 'Worked Hard' but did they resolve it?

Of course.