business banking

[daltontrees]

To answer earlier question, a couple of customers have mentioned they are happier writing cheques to our company but no-one ever said they wouldn't have made a cheque to me or my business partner personally. I think it looks more professional to have company account, especially when dealing with bigger commercial clients.

OK, when I started with our bank the charging structure was bearable. Then the year free banking was up and the costs were indeed Ok. Then we got a letter saying that in a few months time the bankl would be adding (for no additional service) a service charge of £120 a year. That really p****d me off. I then looked at changing banks but all the local banks did the same thing at about the same time. I thought about shifting account to get another year free somewhere, but it's so much hassle to change it.

As has been said, banks are in business like us, but if they could do it without levying a service charge before, why charge now? If they did that to their personal current account customers they wouldn't have any left.

Final moan on the matter is this. The service charge (ignoring the extra transaction charges) is the same whether you use the bank once a year or a thousand times. Whether you are putting £1000 through it or £100,000. If I was startign again I would try and get by with a personal account for as long as possible before paying for a business account.

[Paul Jenks]

I've been with the FSB for 10+ years and have only had the need to use their services a few times. On these occasions they have provided me with good and timely advice. One of the main benefits is the free banking link with the Co-Op. The Co-Op service was a bit pony for the first year or so though they now seem to have sorted their software and access facilities. Most of our payments are Bacs and we have either 3 or 5 (don't recall exactly),nominated post offices to drop money into, so the girls in the office can do it on the way to or from work.

Banks have to make money and as they are mostly PLC's they have to show increases year on year, which is why they look for new ways to make it. PPI is one of them along with LIBOR fixing.

Historically, as I understand it, retail customers deposited money and the bank could then lend this to borrowers for a charge, interest. As this lending wheeze became more sophisticated they found they could lend much more than they held on deposit. I believe it was self-regulated at about 10%, i.e. If they had £100 on deposit, they could loan £1000.

Over the last 15-20 years this figure came down to about 2%. This worked wonderfully for the banks, as they could lend more and therefore charge interest. It was 'great' for the borrowers as the banks were throwing money around.

The crunch came when people began to default on the loans and there was not enough in the kitty to cover the losses.

Governments are now endeavouring to get the figure back up to 8% though this will take some time as there is a vested interest for some banks and entire banking sectors to work at a lower figure for competitive advantage.

The idea behind seperating the deposit and investment arms of banking is to insulate Joe Publics hard earned cash from the derivitives, hedge funds, speculation and debt bundles that lead to the mess in the first place.

Co-Op is a steady and conservative bank. Lloyds used to be until it was pressured by the government into buying HBoS to prevent it failing.

Most of the money created by QE has been swallowed up by the banks to re-inforce their balance sheets. Most seem to have forgotten about the powerhouse of the economy, small businesses, and it only the tenacity of the entrepenuer and those he or she employs that continues to keep the wheels of commerce rolling.

[daltontrees]

Dead right. Small businesses earn money, banks literally make it out of fresh air. They are a necessary evil, I plan to continue to use them only to teh extent things can'be done any other way.

[daltontrees]

thieving gets at my bank have just written to say they are putting the service charge on our business account up by 40%. What other form of business in this economic climate could do this? I wish I could.

Edited January 30, 2013 by Steve Bullman
language please

[Paul Cleaver]

thieving gets at my bank have just written to say they are putting the service charge on our business account up by 40%. What other form of business in this economic climate could do this? I wish I could.

 

banks are like supermarkets - good for a while then they put prices up - ive changed my business banking several times over the years

Edited January 30, 2013 by Steve Bullman

[likeitorlumpit]

Nat West are great

They only charge for cheques in/cheques out/ BACS/ cash in/ cash out/ DD/SO's

Other than that, I can't fault them.

[likeitorlumpit]

Membership Rates

 

Less than my annual bank charges with hbos.

 

That would save me about £150 p.a.

Do they do internet banking.

Do you get interest on monies in credit.

Any other benefits?

[Taupotreeman]

May well be worth going in, speaking to your branch manager and asking him to cut some of the fees. A lot of the NZ banks will drop certain fees if you have the balls to just go in and ask them but most people just accept what they are charged.

[Peter]

That would save me about £150 p.a.

Do they do internet banking.

Do you get interest on monies in credit.

Any other benefits?

 

Yes, yes and the main reason I use them is they are one of the better ethical banks. Not sure if that is a benefit in everyone's eyes but its certainly a plus for me.

[Acg128]

Bank with Santander. Our high street has two branches. One with a grumpy old witch who states the letter of the law regarding paying in and the other with several cheerful ladies who take cheques and cash over the counter with no hassle and big smiles. Guess which branch is always busy and which is empty.

 

Too funny it's exactly the same where I am haha.