Business banking costs

[jon-]

Hi Guys,

Quick question. I've 2 business accounts with HSBC, and between them they can float towards 6 figures in cashflow. They're always positive, one of them has a credit card which is used and cleared each month but other than that no overdraft or loans.

I don't have any contact with the business managers, I don't use the branches for anything other than paying in a cheque once a year, everything is done online.

I'm feeling a bit miffed I get charged for payments into the accounts and online payments going out. I don't earn any interest on the account to offset these pointless charges.

Is there any point me making the case to HSBC about banking costs, or are these just part of business banking. It's only about £20 a month, but I don't like paying for doing all the work myself.

[bugmenot]

HSBC might have a better suited plan for you which will work out cheaper.

An account at another bank might even be better suited. Take some time to shop around.

I believe there are some switching deals with periods of free banking around at the momment but generally costs are just apart of business banking I'm afraid. You're getting a service, so you have to pay for it.

[Du1point8]

Which account are you on?

I have the online only account, meaning Im not charged for online amounts coming and going, but I get royal fecked if I do anything physical.

Likewise there is another account that is a vice versa of that...

Not sure if there is a happy medium inbetween.

[Shnozz]

Du1point8 said:

Which account are you on?

I have the online only account, meaning Im not charged for online amounts coming and going, but I get royal fecked if I do anything physical.

Likewise there is another account that is a vice versa of that...

Not sure if there is a happy medium inbetween.

I also have the HSBC online only account and don't deal with any cash transactions so costs are minimal. I think it's £5.50 a month after an 18 month free period.

Santander might be worth a look if you don't need any support. V straight forward but under-resourced business banking.

[Camoradi]

£20 a month sounds a little "uncompetitive"..

I'm with RBS who do a basic business account package for £5 per month. This covers a small number of over the counter transactions. Like you I do most of my transacting online and get my customers to pay direct into the account. If I were in your position I'd speak to HSBC and see if they can switch you to another tariff

[robsdesk]

I'm with Cater Allen & have been for the last 2 years, zero cost, decent people on the end of the phone & counter service via RBS branches.

Granted my needs are simple (a couple of payments in per month, a couple out & a couple of direct debits) but they've been good to work with.

[Chest Rockwell]

robsdesk said:

I'm with Cater Allen & have been for the last 2 years, zero cost, decent people on the end of the phone & counter service via RBS branches.

Granted my needs are simple (a couple of payments in per month, a couple out & a couple of direct debits) but they've been good to work with.

Yep, as an IT Contractor I'm with Cater Allen too and can echo the above.

However, they do lack 'Faster Banking' in that transfers are one business day if kicked off before 4pm. For example, if you needed to transfer money (dividend, expenses and/or salary) to your personal account then you would need to transfer before 4pm for next day 2pm arrival into your personal account. If you don't mind that and your transactions are limited to less than 30 per month then CA are a good choice for free business banking. They say that opening balance must be £5000 but I opened mine with £100, so I don't think that is an issue any more.