Business Bank Account question

[hobnob]

Any downsides of using the same bank as I have my personal account with?

There's no inherent downside, and I have my business/personal account with the same bank. However, there is a potential risk if that bank had problems, i.e. you wouldn't be able to access your personal money or take a loan from the business.

As a specific example, I knew some people who were working for BCCI (the Bank of Credit and Commerce International) when that collapsed in 1991. All employees had to have a BCCI bank account, and their salary was paid into that each month. Some people then set up a standing order to automatically zap the money over to their "real" account the following day, while other people just used the BCCI account as their main account. So, when the bank shut down, they lost their jobs and they couldn't access any of their savings, which wasn't a happy time. I promised myself that if I ever worked for a bank then I'd move my money to a different bank.

I think it's lower risk if you're using a big bank (e.g. Barclays). Also, even if you did lose access to both bank accounts, you'd only have to last out until you got the next payment from your client. So, in practical terms you should be fine.

[PerfectStorm]

No issue at all. In fact, for a new business, it can be helpful as the bank will already have history on how you conduct your account which will make KYC checks easier.

You quite often get the very fastest Faster Payments times too.

[Grah]

Thanks for the answers guys. I was on holiday between gigs last week so didn't look at a computer for work all week. Heaven.

Will sign up my company with my own bank.

Cheers,
Grah

[PerfectStorm]

I've worked out what the magic secret to getting accepted onto Monzo is. Applying for a Business Pro account at £5 a month, thereby suddenly they can support your type of business. The first month is free, and you can downgrade after that