Which bank is good for small businesses

[fredmila]

I am considering Braclays and HSBC to open a business bank account. From people's experience, which is the bank that treats small businesses the best (or least badly) in terms of charges, overdraft facilities, nasty letters, taking money from your account, etc?

Also, I already have my personal a/c and credit card a/c with HSBC. Is it risky to put all my eggs in one basket by opening the business a/c with them too? They will know all about my finances.

Thanks

 

[MASSEY]

Their all the same to be blunt, personally i would say use natwest.

 

[gemd89]

I really liked my HSBC business account.

Gemma

 

[ElliottRoss]

Hi

When we started we chose HSBC because they offered free banking for 18 months and also had a good internet banking website.

Regards
Elliott

 

[InternetPaymentProvider]

I hear good news about HSBC all the time - not so much Barclays. Good luck!

 

[Richie N]

We've been with HSBC for 6 yrs but not so happy with them at the moment. We are considering moving to Natwest.

 

[robindunne]

I have heard good things about Santander. Movements of cash between personal/business accounts is instantaneous for example.

 

[MyAccountantOnline]

I am considering Braclays and HSBC to open a business bank account. From people's experience, which is the bank that treats small businesses the best (or least badly) in terms of charges, overdraft facilities, nasty letters, taking money from your account, etc?

Also, I already have my personal a/c and credit card a/c with HSBC. Is it risky to put all my eggs in one basket by opening the business a/c with them too? They will know all about my finances.

Thanks

I think the choice depends on what you want from a bank.

I've banked with Barclays for business purposes for years and in the main have had no problems with them, but 99% of what I do now is online so I dont use traditional branch facilities or see the manager very often at all now.

You'll read horror stories on all of them.

 

[alison640]

I have banked with Santander (Abbey) for all of my 10 years + in business, I have never paid a bank charge yet, I am a sole trader, it works for me, Alliance & Leicester are also part of the Santander group, no bank charges, hearing good reports, check out both.

 

[garyk]

Their all the same to be blunt, personally i would say use natwest.

Seriously they are appalling and its not just my experience either. The worst of a bad bunch.

 

[benjamin_c]

HSBC is the best in my opinion.

 

[MyAccountantOnline]

I have heard good things about Santander. Movements of cash between personal/business accounts is instantaneous for example.

I think you'll find thats the case with most/all banks now with 'faster banking'.

It certainly is with Barclays, Natwest, RBS and HSBC which myself and family use.

 

[makegood33]

I come from China,we opened a HSBC bank account too,HSBC is very good.
By the way, we are supplier in China.
We sullply touch switch, time switch, dimmer switch,wall socket.

 

[Philip Hoyle]

Clients with Lloyds, Barclays, HSBC, Nat West, etc invariably tell me horror stories and tales of mistakes and poor service. Barclays and NatWest seem the worst offenders. Relatively fewer complaints about Lloyds and HSBC.

Clients who use Co-Op, Abbey, Alliance & Leicester and Cater Allen, seem a lot happier on the whole but are generally those clients with "simpler" needs i.e. basic banking and no need for borrowings.

Barclays so-called "managers" are nowadays unbelievably poor - not so long ago, I had to go right back to basics and explain to a manager the difference between buying a limited company (i.e. shares) as opposed to buying the business from a limited company (i.e. goodwill & assets) - he really struggled to understand that a limited company was a separate legal entity! The same manager then almost scuppered a business purchase by delaying for over 6 months - the customer (a professional) had been in business ten years, exemplary record, no borrowings other than a £2k overdraft barely used, who wanted to buy-out a block of fees from another similar professional who wanted to retire - he only wanted to borrow £10k for a £50k block of fees (having saved the other £40k from profits over the years in a Barclays account) - all the figures stood up perfectly fully proven by historic accounts and forecasts - the vendor was also a Barlcays customer at the same branch, so the manager could "check" the figures internally on the target business, but nothing but delay and constantly asking for things he'd been given previously - an absolute nightmare.

If you don't think you'll need borrowings or anything complicated, then Co-Op or Santander should be fine. If you do have borrowing needs or anything else unusual (foreign currencies etc) then out of the others, I'd say Lloyds but only on the grounds that relatively few clients whinge about them - possibly the best of a bad lot!

 

[thecyclingartist]

I joined Lloyds for my biz account last year and it's okay. Wouldn't rave about it but no major complaints. I did have to phone and get them to refund monthly fees since I'm still in the free 18 months but they fixed that and were apologetic. My manager is far far away (Birmingham?) but the staff are always helpful in my local branch. Transfers to other banks (non Lloyds) do take several days.

But I've heard good things about A&L/Santander too and am thinking of moving to them in the new year because my needs are so straightforward as a sole trader. Is their online banking good? That's mainly what I use whoever I'm with.

Tina.

 

[lorr]

Hi

I am with natwest never had any problems very helpfull

lorr

 

[Rhodes100]

If you want to establish a lease or have a lease assigned to you then a landlord will want a bank status report.

One disadvange of these new banks ex building societies, the Santanders of this world is that in my experience they do not provide a bank status report in the form that would be acceptable to a landlords solicitor.

So if you choose one of these ex building societies to bank with just because they provide free banking it could affect your ability to prove your reputation and ability to grow your business in the long term.

I would alway suggest you still with one of the traditional banks one of the main four unless you have no ambition to establish a business worth anything.

 

[Minuteman Press]

HSBC. Never had a problem.

 

[90DC]

I am afraid i cannot reccommend RBS or Natwest. As people have said though, there are horror stories with all banks.

I have heard good reports about Barclays and Santander, but i am with Lloyd's and have had no problems. I use Alliance and Leicester for my personal banking, Lloyd's try to get me to switch this to them but i don't have a need.

Hope this helps.

 

[Geoff T]

I would alway suggest you still with one of the traditional banks one of the main four unless you have no ambition to establish a business worth anything.

I disagree - TBH my reaction to this statement was "shoe makers"! I don't buy the old "big 4" is relevant any more!

It depends what you want from a bank, and the type of business... eg, I use Santander, as most of my transactions are electronic, and the added usefulness of immediate transfer between personal and business accounts is helpful...

Look, compare, decide... But don't let irrelevancies cloud the decision...

 

[smooreaccountancy]

When I set up, I went with Santander as they had "free lifetime banking". The only problem would be if you had many cash transactions (eg you are a newsagent or fish and chip shop).
They have loads of branches as Abbey and A&L are under the Santander umbrella too,

 

[alison640]

Just a quick update on Santander..... They are currently changing their internet banking which has caused a few problems for me over the last 2 weeks, however, during a telephone conversation with them yesterday they asked if they could send me a gift.... through the post today a very nice bottle of red wine....Thanks, very well received !!

 

[Richie N]

Seriously they are appalling and its not just my experience either. The worst of a bad bunch.

What makes you say that, can you give a reason why?

My experience with HSBC for the last 6yrs has been great but then they changed our relationship manager without any reason whatsoever and the service has now become appalling. Moving our accounts from Manchester to Oldham.
I have been trying since June to get a new relationship manager (back in Manchester) and it's been an ongoing complaint, apparently I will hear back next week what's happening but that's how they treat their loyal customers.
Aren't they meant to be your local bank....

 

[Andrew @ PLA]

If you are a small business and in the FSB try the co-op bank ..... could do a LOT worse.

 

[Richie N]

If you are a small business and in the FSB try the co-op bank ..... could do a LOT worse.

Yeah with the Co Op for personal account but don't like the FSB, so don't get the opportunity to transfer to them...

 

[CDAPartnership]

I have been in business for over 20 years with one business and another , and have banked with them all at some point, however, I would recommend Barclay's for day to day banking, as they still appear to have the old fashioned bank manager - who still has some authority!

I was once told, to keep my borrowing and deposits with separate banks as it reduces the right of set off. Read more in this article

http://www.nationalmoneyhelpline.co.uk/faqs/banking-questions/is-your-money-safe/

 

[bobbyriggs]

Definitely barclays - they were really helpful when we started.

We have still got great bank charge rates from them 12 years later!

 

[kontracta_com]

Just a quick update on Santander..... They are currently changing their internet banking which has caused a few problems for me over the last 2 weeks, however, during a telephone conversation with them yesterday they asked if they could send me a gift.... through the post today a very nice bottle of red wine....Thanks, very well received !!

Please tell us what the internet banking problem was to get that bottle of wine! I've never been the biggest fan of theirs since we moved to them. However I'm willing to be bought if they send me some vino - even if it probably gets consumed whilst I'm being passed between departments next time I call them

 

[Spongebob]

I ended up with Barclays simply because they were the only bank that would give a recently discharged bankrupt a business account - even the Co-op turned me down!

I have to say that I have found them excellent. I had a problem a couple of weeks ago when I had given my landlord a cheque for a months rent and simultaneously transferred in sufficient funds from an account with another bank, confindently expecting the money to arrive immediately.

The money went missing for four days. I assumed that Barclays would bounce the cheque and resigned myself to an awkward conversation with my landlord. However, they paid it despite me not having the funds in the account and not having any overdraft facility. The money I'd transferred arrived the next day and I was charged the grand total of 28p interest!

That's the sort of service I'm looking for from a bank. I won't hear a word against Barclays...





...until they inevitably do something to hack me off!