Which Bank for a Ltd Company?
Which Bank for a Ltd Company?
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Discussion

Greenmantle

Original Poster:

2,217 posts

138 months

Thursday 26th January 2017
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Hi

Just creating a Ltd Company and now I need a bank account for it. Who is best for the no frills cheapest company account?

John

Davel

8,982 posts

288 months

Thursday 26th January 2017
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The best but maybe not the cheapest is Handelsbanken...

hyphen

26,262 posts

120 months

Thursday 26th January 2017
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Depending on the nature of your business i.e. if just invoicing and online transfers:

CashPlus- free
Metro Bank - free 50 transactions a month if you keep a £5k balance (They partner wth some accountants to offer a £2k min balance offer rather than £5k with 200 transactions too)
Cater allen - 30 free if £5k balance

Most other banks do a 12-18 month free period.

Edited by hyphen on Thursday 26th January 15:32

Dicky Knee

1,100 posts

161 months

Thursday 26th January 2017
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The least hassle will be the bank you use personally.

williaa68

1,540 posts

196 months

Thursday 26th January 2017
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Dicky Knee said:
The least hassle will be the bank you use personally.
This. I didn't do this and regret it. Metro were useless - they couldn't understand that although most of my clients are in regulated industries I am not regulated. Ended up with TSB who are ok but not cheap. Would have been easier to use Lloyds

surveyor

18,705 posts

214 months

Thursday 26th January 2017
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I've recently set-up a sister company to an existing. Our existing bank (RBS) produced about 6 different forms to complete print sign send off. I usually miss something and rather than sending the original forms back, they will send me blank forms to fill in...

Santander so far have been a breath of fresh air....

K12beano

20,854 posts

305 months

Thursday 26th January 2017
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I opted for the same bank as my personal banking, Lloyds. I got "free banking" for first 18 months I think.

They have been a right PITA the number of times their security system won't let me pay for things - fair enough first time was a Mac, but subsequently Trainline gets regularly blocked for me. Then I run up a big 'phone bill trying to sort this out. You just don't know this sort of hassle until you experience it though.

This leads to lots of swearing - and I often seem to be in the middle of an open plan client's office ... rolleyes

I've stuck with them for the slight paranoia that money from there to a personal account doesn't have to go inter-bank (especially with the regularity that someone's systems will go down on a Friday!), but for "excess" funds - i.e. Money set aside for CT and future expenditure - I thoroughly recommend Aldermore who seem to get better and better to use. If they did a business current account I'd probably switch.

Grumpy Griff

183 posts

279 months

Thursday 26th January 2017
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surveyor said:
I've recently set-up a sister company to an existing. Our existing bank (RBS) produced about 6 different forms to complete print sign send off. I usually miss something and rather than sending the original forms back, they will send me blank forms to fill in...

Santander so far have been a breath of fresh air....
I second that, I have three different business accounts with three different banks. Santander where by far the easiest to set up. And the online and app banking is very simple!

Greenmantle

Original Poster:

2,217 posts

138 months

Friday 27th January 2017
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Thanks for all the advice.
My first choice was based on the common sense that I should go where my personal account is being held and it looks like some of the issues above mean that it isn't always plain sailing. I had a feeling that this was the case that is why I posted here. Anyway I am going to stick with this choice (18 months free) and see how it goes.
Thanks again.

John

buggalugs

9,292 posts

267 months

Friday 27th January 2017
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I have personal and business account with RBS but to be honest I'm not entirely comfortable with it. for now the convenience factor is keeping me there but it's a few too many eggs in the same basket.

I have had scenarios like needing to extend my personal overdraft a few years ago and apparently nobody but my business account manager (That I'd never met because they'd been through three of them in a short time) was able to okay that even though it was my personal account that predates the business. They were on holiday and I had a serious run around trying to get it sorted.

It makes me worry that if I was ever in distress financially on either the personal or business side then there's no 'containment' there and literally one bank / person could turn the lights off on me just like that.

Dicky Knee

1,100 posts

161 months

Friday 27th January 2017
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buggalugs said:
I have personal and business account with RBS but to be honest I'm not entirely comfortable with it. for now the convenience factor is keeping me there but it's a few too many eggs in the same basket.

I have had scenarios like needing to extend my personal overdraft a few years ago and apparently nobody but my business account manager (That I'd never met because they'd been through three of them in a short time) was able to okay that even though it was my personal account that predates the business. They were on holiday and I had a serious run around trying to get it sorted.

It makes me worry that if I was ever in distress financially on either the personal or business side then there's no 'containment' there and literally one bank / person could turn the lights off on me just like that.
My experience is that relationship banking exists only in the marketing brochure.

Banks will shower you with offers of loans and overdrafts when you don't need them. If you have a problem you are on your own.

My recommendation is that when you get the first inkling you may have a problem (and before it is visible in your personal or business accounts) borrow as much as you can. Draw it and put it in another bank.

Edited by Dicky Knee on Friday 27th January 22:35

ClockworkCupcake

80,108 posts

302 months

Saturday 28th January 2017
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We used to use Cater Allen (née Flemings) but their lack of counter services was a real pest for paying in cheques, back when cheques were a thing, so we moved to HSBC Business who also had free banking for low volume companies. But these days HSBC charge £5.50 pcm and we're considering going back to Cater Allen as we no longer need to pay in cheques.

ClockworkCupcake

80,108 posts

302 months

Saturday 28th January 2017
quotequote all
buggalugs said:
It makes me worry that if I was ever in distress financially on either the personal or business side then there's no 'containment' there and literally one bank / person could turn the lights off on me just like that.
Indeed. This is one of the reasons I have always kept business and personal accounts at different banks, and also never taken a bank's credit card.

anonymous-user

84 months

Saturday 28th January 2017
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We use HSBC for one business and Barclays for another. Both were ok to set up.

Bonus is that each of them can 'feed' live account information to our accounting system (Xero).

dfen5

2,398 posts

242 months

Sunday 29th January 2017
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With NatWest. Fairly easy to setup once you get past the loads of forecast questions. Not had any real problems but the online banking seems a bit 'basic' or domestic for a business.

TheBudapest37

1 posts

117 months

Tuesday 31st January 2017
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I have found Santander Business Banking excellent for my Ltd Co for the last 7 years.

Stay in credit and there are no charges.

XJ75

499 posts

170 months

Tuesday 31st January 2017
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I use Cater Allen and while I can't fault their customer service, the lack of branches, lack of mobile banking and lack of faster payments has made me look elsewhere.

My accountants are currently recommending Metro.

XJ75

499 posts

170 months

Tuesday 31st January 2017
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A key factor for me are banks that my accountants have access to read the statements online, so much easier than submitting paper statements.

Zoon

7,305 posts

151 months

Tuesday 31st January 2017
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ClockworkCupcake said:
We used to use Cater Allen (née Flemings) but their lack of counter services was a real pest for paying in cheques, back when cheques were a thing, so we moved to HSBC Business who also had free banking for low volume companies. But these days HSBC charge £5.50 pcm and we're considering going back to Cater Allen as we no longer need to pay in cheques.
Going by the paltry interest rates I'm not quite sure why you'd bother.

ClockworkCupcake

80,108 posts

302 months

Tuesday 31st January 2017
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Zoon said:
Going by the paltry interest rates I'm not quite sure why you'd bother.
Do any banks pay decent interest on accounts these days?

Interest is so poor these days that switching from HSBC's monthly charge of £5.50pcm, to free banking, would leave me better off.