Banking issues

[Snap8TheCat]

I'm a childminder. HSBC are being a bit difficult about my use of my personal account as a 'business' account. I've tried to explain I don't have a business name or address but it's very much 'computer says no' because I'm self employed.

I have a feeling they want me to open a business account with fees attached but I don't see why I should.

Any help please?

I didn't until I started work with DH and we setup a limited company.

And they're personal cheques notnisines

They can't force you ... I have similar problem with my bank. I have an old no frills student account. Once in a while, they run a campaign for changing it as it clearly don't make them money (but it does cost them a few pennies).

I have a no frills basic account with TSB. I just resolutely say no thanks when they "suggest" a "better" one. You don't have to have a separate business account as a childminder. Just the ability to trace your money for the benefit of the taxman.

Thank you. Good to know they can't force me. They've made me fill out a form with lots of odd questions and it's made me super nervous that they are going to shut me down.

If they do, just take your business elsewhere.

OK, so legally there is nothing to say you must have a Business bank account if you are a Sole Trader, you can run your business and personal banking through the same account. If you have a Ltd Company then the Company does, legally, have to have its own bank account.

But... it is very common for banks to put a clause in their Ts&Cs to say you cannot use one of their personal accounts to run your business. Many Sole Traders ignore these rules and manage to fly under the radar, if the bank doesn't notice then you're finally if they start to ask questions then you may find they convert your account to a business one or close it completely. It's definitely worth keeping your head down and see if they go away but it might be worthwhile opening an account with a totally separate bank, just in case.

How do you pay into the account? Lots of cheque deposits can sometimes trigger questions.

No cheques, all internet transfers and childcare voucher companies so no cost really to them.

I wonder if it is the number of incoming transactions per month that is triggering it. Are there a lot of transactions, like more than 10, more than 20? I wonder what the threshold might be.

I have 11 mindees on the books so at least that many incoming. Not a massive amount of transactions outgoing though, I only have usually 2 pages of bank statements per month, same as DH.

Anyway they've restricted my daily withdrawal limit now, whilst the 'process my information'.

Take your custom elsewhere!

I may not have a choice!