Small Business bank accounts

Is it essential to have a business account? Why not operate through an ordinary current account which costs next to nothing?

Rob Graham

It depends on the current account name and the level and type of activity - as well as if it is allowed!

Hello,

I suppose if I traded under my own name then I could get away with running a personal account.

I also have a Barclays Merchant account which I'm sure would not go down to well with a personal account!

What I'd like to find is either an online forum or newsgroup where I can find out what other small business owners have done to reduce bank and other charges. Also to bounce some ideas about.

Any other suggestions?

Abbey National I use, pretty good with online banking, snags are: Visa Electron card supplied with account not accepted everywhere. You are only supposed to pay in via hole in wall which adds a day to the process - 5 days instead of 4

I'm currently with Barclays and their business account does give me a visa debit card which is acceptable everywhere.

I'm also happy that it's a debit only card!

What I suppose I'm looking for is to save on my current bank charges.

Don't pay any charges with Abbey National unless go overdrawn.

Is that true with their business accounts???

Yes, mine is small business account - just reading the latest blurb:

Two tariffs, one completely free within defined transaction limits, other free for 18 months followed by competitive charges- this is for higher volume banking. Interest on credit balances forever guaranteed.

Sounds good to me. I have a branch approximately 100m down the road!

I think the interest on credit balances is rather immaterial but I suppose all the pennies add up.

Thanks.

Is that miles or metres?

Not a comparison but I've been using an Abbey National business account for my Ltd. company for the past year or so and it seems to work OK and it's free, unlike just about all other Ltd. company accounts. It even pays interest on current account balance.

It's only free for a limited number of transactions (30 to 40 a month or so I think) but that's no problem for me.

Yes, I think they're just about the only free business account at the moment now that Flemings/Cater Allen have gone (odd, since Cater Allen are Abbey National anyway).

Well it was '3% until Jan 2003' according to the out of date stuff I have. Dunno what it is now. As I said, the only snags are: You must pay in by envelope in cash machine which takes 5 days instead of

- so you have to shop around if its your only card.

I don't use an overdraft, so have only got hit a couple of times for bounced cheques, so I don't know what they are like if you consistantly run the account in o/d conditions.

Hi Chris,

Thanks for that second recommendation for the Abbey.

Since no-one else has got there yet - try the Business Account Finder from The British Banking Association/Business Moneyfacts

Daytona

Hi Daytona,

Thanks for that.

I'll go check it out.

I just tell my bank that they make enough interest from my float compared with what they pay me in interest, so I don't want to see any changes on the account thank you very much.

Occasionally, they need reminding of this agreement, but it's been fine for the last four years.

SE