I am hoping to start teaching some classes and wanted to get a bank account organised for the money. Any suggestions? It won't be a lot of money but I thought I should keep it seperate from my personal account. A lot seem to charge a monthly fee or expect you to have a certain amount of money in the account which I won't have.
We used to be with HSBC but when the fee free period ended the bank charges hit us. We always had ecellent customer service though.
We joined the Federation of Small Business and now have their fee free co-op account.
Don't touch the Santander charges free accounts with a bargepole. It is really difficult to pay in especially if you deal in cash (and parents often still pay cash for classes) Its all done by machine you can't use the counter service.
Dh is in the process of closing his Santander business account he is a vocal teacher.
I will have to look up the FSB fee but we looked atthe figures at the time and it cost a lot less than HSBC's fees. You pay so much for every cheque you pay in, so much for every £100 of cash you pay in etc.
You don't need a dedicated business account that will cost you in the end! As long as it is a separate account for bookkeeping purposes that is just fine. In some cases even just a separate savings account is ok!
The only reason I have a dedicated business account these days is because of international income and VAT! Previously I run my business through my personal account (just a separate one). I am a business trainer and coach and often this comes up. When you are ready and need a dedicated business account then shop around for the best deals and offer at the time :-)
Pegasi I might have a US contract soon. Why did international income make you set up a business account, if you don't mind my asking? I doubt VAT will be an issue, I made less than £5,000 last year and I don't see that changing any time soon!
It was simpler with income coming in from various countries as the bank offered extra services with a business account that helped me like a merchant account for credit card processing etc. My accountant and dedicated bank account manager advised mr when the time was right for the switch. It also helps that I am a business coach and trainer plus this isn't my first business so knew what I could do and with the additional support/advice when to leap!