Which bank to set up payments for a very small new business?

[stirling]

Hi,

I'm thinking of opening an account with a building society (preferably) or bank. I don't even know where to begin. I tutor part time and the income is inconsistent. But I want to move away from cash payments to bank transfer.

I've had a really scary, awful experience with Barclays where they shut my account down temporarily (too long!) for the most hideous reason and I was so upset, I vowed to shut my account down. They are rude, show no loyalty towards long standing customers and are troublesome.

Can you please suggest a good place for me to start?

Thank you

You could try a Monzo account? People can pay you really quickly to that, you can set up pots and categories and keep it separate from your personal account.....

Don’t know if you listen to radio 4 but there was a segment on You and Yours last week about Monzo blocking people’s accounts and them not being able to get access to their money for weeks - something to do with security checks/money laundering etc. Might be worth a listen before you decide.

We use Cooperative bank for our small business. Never had any issues.

Many thanks, that's really helpful to hear

You don't need a special business bank account to accept freelance earnings. Just choose whatever current account works for you, whether online like Starling, good for customer service like first direct, branch convenience, one that you can pay in at the post office, cashback product, premium account with travel insurance etc or linked regular savings account. Look on moneysavingexpert or similar for details.

We have a Santander 123 account and all DPs earnings go in there from a variety of sources and we've never had an issue. It also pays cashback on bills that outweigh the £5 monthly fee and 1.5% interest on up to £20k, so good for an all in one bills and savings for annual expenses and tax account.

But only probably works if you are able to separate the act of managing your money from the decision to whether or not it is available to spend. If you are a 'i can spend whatever money is in my current account' type then keeping it all together might not be for the best.

Thank you Barbara that is such helpful info. Yes I banked with santander many years ago, I like the suggestion.

I'd look to open a second current account with your exiting bank. Otherwise I'd look at Starling