Reply to: Bank account

[Captain Jack]

I've no problem with people making money either, but it's a competitive market place and there are people who provide more or less the same facilities without any charges at all.

The big objection is it's described as "Free* Banking"

[tiny T&Cs font] *i.e. Not free. [/tiny T&Cs font]

HSBC had a run in with the ASA a couple of years ago after advertising a "Free" business banking package that after close examination of the T&Cs was revealed to be anything but free.

[planetit]

I’ve no objection to people making money, but I don’t feel compelled to help them. I get the same service from Cater Allen, but they actually pay me for using it.

And if any of your customers actually pay you by cheque, the Barclays/PCG account will charge you for that as well.

[malvolio]

Ooh! Nasty commercial people wanting to make money....

Or use a company debit card, Internet banking and online payments to Hector, Companies House and the VAT man and you don't need to write cheques ever again.

[planetit]

PCG and Barclays have established a preferential arrangement for members. Free banking within limits and higher rate savings account seem to be the main benefits. Their relationship manager is very active. See PCG website for details.

It's free unless you ever need to write a cheque (or pay one in). Then it gets expensive.

How they can describe it as free when every cheque you write is charged at 54p is beyond me.

[Mustang]

Pcg

PCG and Barclays have established a preferential arrangement for members. Free banking within limits and higher rate savings account seem to be the main benefits. Their relationship manager is very active. See PCG website for details.

[Joe Black]

And I thought it was a nine month deposit returned with interest...

[mcquiggd]

You have to leave it in there for at least two weeks...

Allegedly.

[planetit]

Will there be a penalty for early withdrawal?

[Lucifer Box]

I can do that too, doesn't sound too hard. Do you want to bank with me?

If you ask nicely I might be tempted to make a deposit with you.

[Rebecca Loos]

I can do that too, doesn't sound too hard. Do you want to bank with me?

[Lucifer Box]

The only down side with Cater Allen is no internet banking, but the call centre is very good.

That's one of the main reasons I will continue to bank with Cater Allen. The phone is always answered within a couple of rings by an on-shore human being. No recorded messages, no IVRs, no hold musak, just a bod with a recognisable accent who picks up the phone and says "hello, what can I do for you today?"

[planetit]

I don’t know. If Barclays/Nationwide etc can offer you free banking (permanently, not just for an introductory period) AND pay some interest, then they should be just as good. I’ve looked around, and never found a better offer (though one or two are about the same). The only down side with Cater Allen is no internet banking, but the call centre is very good.

My main point is that you should not pay for business banking if you are a regular contractor. In fact, they should be paying you.

[malandri]

Cater Allen and others

You don't have to pay to get a business bank account Flinty. As I've already explained to you, you can get a free Cater Allen account through the CUK site (or your accountant).

And it pays good interest.

I keep seeing Cater Allen everywhere: A few accountancies that i talked to suggested opening an account with them for free. Do you know if these guys (Cater Allen) have any advantages over other banks like Barclays/Nationwide etc that provide business account services as well.

Many thanks

[Flinty]

Abbey

Thanks for the advice guys... the only reason I enquired is that I saw the offer for the Cater Allen account, but as I have already started my contract and haven't been paid yet, I was looking for a quick way to set up the business without having to send off all the company info paperwork with the application so that I could get my first payment quicker.

Not trying to offset anything, don't even have an offset mortgage at the moment (I'm not that dodgy!).

I have now found the Abbey account, thanks xoggoth, and am going to send off a application for an account there, although may have to go for umbrella in the short term to improve my personal cashflow in the interim period.

[boredsenseless]

You don't need a business account but the bank will take a dim view of you running a business through a personal account and will close it down.

What punitive charges, BTW? Mine run at around £6 a month and are covered by the interest on the current account. Others are even cheaper.

Most agents won't pay into a 'private account', also the HMRC takes a dim view of interest on Company Money being paid into an individuals private account, how do you reconcile the tax paid on interest since the bank with withhold it at source.

Unless you are a sole trader its a no-no. (i.e. not limited).

Are you doing this so you can use your companies balance to offset a mortgage by any chance?