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Business Bank Accounts

  • 46 posts
  • # 84654

Hi, I've just passed my level 3 computerised (yipee) and I'm ready to start getting things organised to start my business. I have been looking at business bank accounts and the banks charge per transaction. Is it possible to have a personal account which is only used for business purposes or do I have to have a business account?
Thanks

  • Fellow PM.Dip
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  • 336 posts
  • # 84662

I have a personal account which I use solely for the business.  When I set it up with Barclays they knew this would be the case.  I don't generate enough income to warrant a paid business account and I think they respect that (sorry, I know respect isn't a word usually associated with banks!)

  • 46 posts
  • # 84665

Thank you, was hoping that would be the case, would rather try and keep costs down as much as possible. Every penny counts.

  • 220 posts
  • # 84674

I'm with Lloyds, and when I went Self-employed, I sat down with a chap and explained that I wanted another current account to keep my work bits seperate from personal stuff.  I wasn't stroppy, but I kind of told him what I expected from him and he agreed.  I think if you are honest about how much you are likely to earn, and how you'll be paid - they are quite good.  What they don't want is to give businesses a personal account if they are going to be in the branch several times a week, as this is what costs them money.  Nearly all my customers pay online, with the occaisional cheque which goes in the depositpoint, and a small handfull of expenses every month by debit card.

  • 46 posts
  • # 84675

Thank you, I've booked an appointment with my bank (Natwest) and hope that they will do the same thing. Thanks

  • Fellow PM.Dip
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  • 186 posts
  • # 84679

Hi Lorraine,

I opened a business acount with Nat West who offered 18 months free business banking, I also have a business tax saver account with them so that I can transfer money to cover any tax/NIC4 contributions (for when I am hopefully in a position to earn more than my personal allowance!).

Once the free banking period is over, I will sit down with my business manager & try to negotiate continued free business banking, if I don't get it, I will simply move my account to another bank that is offering free banking.

All the best,
Jo        


    

  • Companion Member PM.Dip
  • Practice Licence
  • 75 posts
  • # 84694

Hi

when I started up mine I went with Santander - free business banking - all online. 
There are branches around that you could pay cash into an automated machine but as I like all internet I don't mind it.

The online is cool - I can see my 2 accounts and my husband's 2 business accounts and can easily transfer money so he pays his bills to me on time !! 

moneysupermarket just did a comparison :
 http://www.moneysupermarket.com/current-accounts/business-bank-accounts/?source=GOO-3B92D7B4&p=0&keywords=free+business+bankingExact&mckv=suiyAVhEO_pcrid_13466615592_mtype_e_kword_free%20business%20banking_2764ri918980&uuid=322577d5365223478d071c9680a1a297&gclid=CPChtMHD7rECFcIPfAodWVUAKg
looks like slightly different Santander deals around now.

Hope this helps,
Kirsty Smile 

  • Companion Fellow PM.Dip
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  • 1137 posts
  • # 84696

Hi 

I have had Santander free Business banking for 10 years now.   In 60 to 90 days Santander are no longer giving any free Business account unless it is 1 you agreed for 12 months start up.

Everyone with  a business account with Santander shall be charged  a minium of £7.50 a month.

This has been all over the news.   I personally think the online service is great.  But there is no more free business banking with Santander  unless you have just started. 
 

  • 153 posts
  • # 84708

I'm with HSBC who offered 18 months free banking followed by charges only for certain transactions - such as paying in cash - so it's still free for how I use it.

With my ex-bankers hat on, it could well be that a personal banker would be happy to open you a personal account if they get more sales points for doing that than for passing your lead to the business banking team!!

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