Business Bank Accounts

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I started a tiny business at the end of January. I've spent a lot and not made much money, but I'm enjoying it and things are picking up!

Can anyone recommend a bank for a business bank account? My current account is with a building society, so I'll need to go somewhere else for business.

I've looked at HSBC and TSB as they have local branches, but I really just need a current account with a card and online banking.

Please not Barclays, can't stand them!

Are you a sole trader or a limited company?

If you are a sole trader, you don't really need a separate business account.

My business account is with co-operative Bank, but they are a bit rubbish really - terrible online banking service.

All the major banks offer business accounts though.

Just be aware that if the bank realises you are using your personal current account for business purposes you will incur charges for ALL of your transactions on the account. NOT just for the business ones. The reason people say just use your normal account is to avoid business bank charges.
You can usually get a 'free' business bank account for at least a year with the major banks and then you will be charged per transaction, or per month, after your 'free' period.
If you have a small business and use a business account and have an accountant to draw up your accounts you may save on accountancy fees, because, with putting everything through your private account they will have to put through the private parts as 'drawings/personal'
so the fees will be higher for their time.
We are with NatWest (the bastards are shutting our very busy branch though).
All the big banks are much the same .

Please read the thread on here about HSBC, they have behaved appallingly and forced people out of business due to their incompetence. I am still waiting for a call back from September.
The branch staff can’t help with anything and the call centre are awful
I use Yorkshire Bank and they are great, local contacts but a UK call centre if I need it. I appreciate it’s not an option for people not in Yorkshire though. I got 2 years free banking with them

Thanks guys :)

I'm a sole trader.

I'll avoid Co-op and HSBC then! I'm looking at Yorkshire Bank now, but why are they not an option if you're not in Yorkshire? They look pretty good :)

Sorry I didn’t know they were all over the place, obviously they are online but I also like to have a local branch and I didn’t think there were any outside Yorkshire.
They gave me 2 years free banking

Watching this with interest! I'm also self employed and thinking about setting up a business account to make accounting easier and more transparent.

Yorkshire bank offer 25 months free banking pretty sure u can open on line x

Trouble with the introductory period free banking is that when they do start charging, it's usually more than the banks who charge from day one. I've had clients suddenly seeing bank charges of £50/£100 per month when the free period ends. By that time, you've got your standing orders and direct debits set up, your customers have your bank account details are are used to sending BACS payments to you etc., so it's a real pain to change to a different bank and get everything changed over. You're also losing the relationship and setting up again with no prior knowledge, so maybe more problems if you need anything special like an overdraft. You're best going to a bank which will cost less in the long run, i.e. research their fees for paying in cash/cheques, research cost per BACS in, cost per DD/SO out, etc. Some banks charge a straight £10 per month from day one which usually works out cheaper than zero for 2 years and then £50 thereafter.

Yorkshire Bank bloody turned me down. Guess I'll have to stick with my personal account for now :(

I use a deposit account for my business banking. The bank don't know that I use it for business. It has only Paypal and Amazon deposits and cash withdrawals. No direct debits.

I have used Santander - very quick and easy to set up and not had any problems. They change £7.50/month admin fee, I think you can get deals to get a years free, but I wasn't offered this when I set up.

They have been very good.