Mumsnet Talk

I'd like to open a business account (as a sole trader) and I was wondering if anyone has a bank that they'd really recommend.

I bank with First Direct and I'm really pleased with them but they don't do business accounts . I'm tempted to go with HSBC who are offering 18 months free banking at the moment but I think that that's really 'cos I'm really happy with First Direct and they're part of the group.

I've also just seen that NatWest are offering 2 years free banking for start ups.

I'm confused and I thought I'd be best off asking the wise people at mumsnet.

TIA

If you can operate mainly electronically then I would recommend Santander. Their business banking is free if you do everything electronically, they start to charge if you are paying in a lot of cash/cheques etc. Depends on the nature of your business really.

You don't have to have a business account, or even a separate account if you are self employed.

If you have loads of transactions though, it might be easier to have it separately or if you need business cheques. Banks like to convince you that you need a different account so they can charge.

Co-op used to do a very good business account, but they did suspend it for a while. Worth checking out.

I've run my sole trader through my (joint) personal account for 13 years quite openly

If you don't need a business account why do they exist?

You need a business account if you are a Ltd Company.

Thanks.

Thanks everyone.
That's interesting and it's given me food for thought. I thought that, if the banks realised that you were doing business operations through a personal account, they'd start charging.

They might want to talk to you about the number of transactions, but they can't 'just start charging you'. You always have the option to say you are moving banks.

I have run mine through my Lloyds personal account for 18 months now with no problems.

The co-op knew full well what I was doing as they used my bank statements as verification of my turnover for my extra mortgage!

Santander do free business banking. I bank with them. Fair warning: they are hopeless.

We have our business account with HSBC and would recommend them, we got 18 months free banking then if you stay under their threshold of electronic transactions and cheques paid in per month after that it can still work out as free. Found them very helpful and it's much easier to keep track of transactions with a separate account rather than trying to run things through a current account.

I banked my Financial Ombudsman cheque from Santander just before Christmas.
Nuff said.

We have Co-Operative FSB Business bank account. Can really recommend it. It's free banking and they are very helpful during difficult times.

The only pre-requisit is that you join the Federation of Small Businesses - another recommendation from me, even if it's just for their legal advice line.

I'm doing Co op for my new company
I did the online application before Christmas and have STILL not received a paying in book or dongle to pay bills

but once it is alive I'll move DHs company to them from Santanderrrr