hi,
i took over a small business and on my first (significant) bank charges statement i notice i have been charged 500 odd quid with nearly 300 being charges for paying in cash. they (barclays) are charging me 50p in the pound for banking cash and i banked 54k in this period.
are they having me over or is this quite normal?
many thanks,
sean
If you are banking lots of cash, it is often a good idea to get a Girobank account at the post office, and pay the cash in there. They have the facility to automatically transfer the money into your main account every week or so.
"50p in the pound" would seem excessive, but a few % would seem reasonable when you consider the high cost and risk of handling cash as opposed to electronic forms of payment.
50p in the pound? I think you mean 50p per hundred pounds. Why not pay the cash into your personal account (on which there are presumably no charges for cash pay-ins), and then write your business a personal cheque for what the cash was worth, but do it less frequently, such as one cheque a month, which might cost you 50p each time.
No doubt sooner or later they'll notice that you're "laundering" business cash through a personal account, but if they kick up a fuss just change bankers. I gather Abbey offers a charge-free business account.
Not for £54k of cash per month as far as I'm aware.
Not even per year? The guy did say it was a "small" business.
sorry guys, it was 50p in the 100 pound and it was over 3 months.
i just wondered if some bank were like 30p / 40p / 20p...
tanks for replies.
sean
Yes, best you will do if Girobank/A&L
Pay in cash there, and then transfer it to another account!
Tradtional banks dont like cash, the postoffice however has a high need for cash (to pay benefits etc) so is substantially cheaper than your local bank. We had the same problem with HSBC, in the end the manager told us that he didnt was cash anymore (as it was a problem) and to use Girobank.
A second charge to be aware off is "debit turnover". We was also paying a fee p per 100 for any debits from the account. Hence if we transfer the cash from Girobank to HSBC and then wrote cheque we would pay again.
Once you are able to pay cash into an account, you dont need a local branch anymore. Have a look at
Looks like they are having you over, but contact your bank and query it, you may have signed for these charges when taking over the account.
I bank with barclays and do not suffer such high charges. Talk to them.
Regards ned
that sounds out of order, my bank (hsbc) charged 60p per paying in slip (regardless of the amount on it) when annual turnover was under 100k, but after turnover went past that the price was renegiotated and works out at
40-something per slip now!BeanSmart website is not affiliated with any of the manufacturers or service providers discussed here. All logos and trade names are the property of their respective owners.