Business bank account recommendations

[cosmos]

Knowing nothing about business bank accounts and being close to taking the plunge in moving from permie to contract employment, I now need a business bank account.

Can anyone recommend “the best one” (I know, it probably depends on lots of things) or the key things to consider when choosing a business bank account?

I’ve been told to go with Santander by a colleague, but have no information or justification to that, so don’t want to jump in to the wrong thing.

Thanks

[Michael at BI Accountancy]

The normal recommendation for contractors would be Cater Allen (Subsidiary of Santander), which is free banking for life given you stay within a certain amount of transaction etc.

You can see more info here Free business bank account l IT contractor bank account l Cater Allen free banking :: Contractor UK

However you can go through the other high street banks such as Barclays, NatWest...

We currently advise on NatWest due to having an arrangement in which we receive a very quick turnaround, so may be worth checking with your accountant as to who they recommend.

[2BA]

Banks

I used to be with HSBC until I realised they'd changed their T&C's & were charging me £5/mth for the pleasure of having the account. Their interest paid about 2p/mth.

I then did a bit of research & found the co-operative bank. They charge for transactions rather than a fee, & the typical contractor type transactions are pretty cheap, circa 20p... I also now seem to be getting nearly £10/mth interest too.

The only PITA are restrictions on payment dates -I can't make payments at weekends or in the evening. I can set them up, but they have to leave the account during normal working hours.

[TheFaQQer]

http://forums.contractoruk.com/accou...-accounts.html

[BolshieBastard]

Wouldnt touch cater allen with a bargepole TBH (Yes, I have used them in the past).

Yorkshire Bank are doing upto 24 months free banking whether you're a new co or existing co. I currently have free banking with a £25 annual loyalty bonus via my FSB Bank Account with the Co Op. The interface is tulipe (I could design better and Im no developer) but it serves my purpose.

Some people dont like them because they supposedly failed a stress test but so long as you dont have more than 85k held by them (wasnt that increased?) I dont see the problem.

[Andy O]

I use HSBC, and have had no problems. They have both good internet and mobile banking via a secure two factor authentication device. Payments to my personal account are instant. They offer a linked commercial credit card which is good for travel expenses (fee of £32 per year).
For start-up companies they provide 12 months free banking, after that it's £5.50 per month. Their savings account is useless though with a rubbish interest rate, but I have an Aldermore Business Savings account where I move money every month to cover VAT and corporation tax.
I had no trouble in getting a £2000 business loan when I started a couple of years ago to set up with a decent laptop and other office equipment.
No problems with them in 2 and half years, so if you're happy with the small fees I can definitely recommend them.

[PerfectStorm]

Natwest (free for 2 years, though the overdraft is only free for 1 year so remove it in year 2). Had to chase to get them to set up though.

Aldermore Easy Access for the actual money which gives interest at 1.1% (I know, go crazy) but which if you're storing it up to pay corporation tax or waiting for the new tax year can still be worth a fair bit - minus 20% of course as a profit! I just maintain a sundry amount in Natwest and use Aldermore to shift money backwards and forwards as and when needed.

[Andy O]

Natwest (free for 2 years, though the overdraft is only free for 1 year so remove it in year 2). Had to chase to get them to set up though.

Aldermore Easy Access for the actual money which gives interest at 1.1% (I know, go crazy) but which if you're storing it up to pay corporation tax or waiting for the new tax year can still be worth a fair bit - minus 20% of course as a profit! I just maintain a sundry amount in Natwest and use Aldermore to shift money backwards and forwards as and when needed.

Ditto for aldermore

[malvolio]

HSBC. Does what it says on the tin.

[eek]

HSBC. Does what it says on the tin.

+1. £5.50 a month but phone number that gets answered and instant bank transfers....