Banking Cash...
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russy01

Original Poster:

4,795 posts

197 months

Monday 14th February 2022
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Afternoon,

Just had my Jan bank charges statement today and staggered at the cost of banking cash! We operate online and have rarely handled cash - however we recently opened a shop and now have to cash a reasonable amount each week.

Online Payments to suppliers (£X,XXX,XXX) - £60
Banking cash from our shop (£24,000) - £170

At this rate I am expecting our charges to bank cash to hit £3,000pa which is a lot. Natwest are charging 70p per £100.

What do you do to reduce the cost? Somebody has told me they used to cash in at a building society for free, then do a single monthly cheque to get it back to their business account. We have a nationwide in the next town (rural area), I'll chat to them later in the week.

Appreciate any feedback.

Cheers.




CRA1G

7,054 posts

211 months

Monday 14th February 2022
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We have a Building Society account just for cash payments which we then do a contra payment direct into the business account.

russy01

Original Poster:

4,795 posts

197 months

Monday 14th February 2022
quotequote all
CRA1G said:
We have a Building Society account just for cash payments which we then do a contra payment direct into the business account.
Ok nice, so my friend might be right. Ill tap up Nationwide and see if I can get this set up...

steve2

1,827 posts

234 months

Monday 14th February 2022
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CRA1G said:
We have a Building Society account just for cash payments which we then do a contra payment direct into the business account.
Hi Craig, is the Building Society account in the business name or a personal name ?
I also have to bank a fair bit of cash at pretty hefty rates

Vasco

18,009 posts

121 months

Monday 14th February 2022
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Some Building Societies will limit the amount of cash they accept (particularly if any coin) and often allow it only to credit Personal accounts (not businesses).

DavePanda

6,754 posts

250 months

Monday 14th February 2022
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Have you thought about having a cash collection with a company such as Loomis? They tend to be a lot cheaper that counter charges and happily collect small amounts as well as large

hyphen

26,262 posts

106 months

Monday 14th February 2022
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Compare business bank accounts and find the best deal for you. Also start paying for things in cash so you bank less.

Also how does £170 on £24K compare to the fees you are being charged on card transactions? And the risk of chargebacks

ymwoods

2,193 posts

193 months

Monday 14th February 2022
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Not sure of any tax implications, although my accountant never said anything, when I had this issue I ended up paying in at a post office using my personal account and then transferred it over to my business. Got "told off" a few times as I shouldn't have been doing it to avoid the charged but was never refused. Was with HSBC for both business and personal.

DirtyHands

111 posts

99 months

Monday 14th February 2022
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We use Santander business banking and whilst restricted to £1k a month cash pay in over the counter they have never charged us to pay cash into the atm, only downside is it’s restricted to 50 notes at a time so it can take a while to pay in larger amounts of cash

russy01

Original Poster:

4,795 posts

197 months

Tuesday 15th February 2022
quotequote all
hyphen said:
Compare business bank accounts and find the best deal for you. Also start paying for things in cash so you bank less.

Also how does £170 on £24K compare to the fees you are being charged on card transactions? And the risk of chargebacks
Whilst I’d love to spend the cash personally I’m talking about £24k in little over a month! You’d struggle to make a reasonable dent in it unless you had a severe habit!

Also, you’re aware that the charge is less - but that doesn’t mean I shouldn’t seek to reduce it! It’s 0.7% and I’m not going to get a combined rate near that with online card payments, but I’ll still look to save myself up to £3k pa.

Also you note chargebacks etc. Correct yes, but handling reasonably large amounts of cash in a busy environment with many staff isn’t necessarily free from risk.

Cheers.

Vasco

18,009 posts

121 months

Tuesday 15th February 2022
quotequote all
russy01 said:
hyphen said:
Compare business bank accounts and find the best deal for you. Also start paying for things in cash so you bank less.

Also how does £170 on £24K compare to the fees you are being charged on card transactions? And the risk of chargebacks
Whilst I’d love to spend the cash personally I’m talking about £24k in little over a month! You’d struggle to make a reasonable dent in it unless you had a severe habit!

Also, you’re aware that the charge is less - but that doesn’t mean I shouldn’t seek to reduce it! It’s 0.7% and I’m not going to get a combined rate near that with online card payments, but I’ll still look to save myself up to £3k pa.

Also you note chargebacks etc. Correct yes, but handling reasonably large amounts of cash in a busy environment with many staff isn’t necessarily free from risk.

Cheers.
I don't know the type of business, or UK region, but I'm surprised at that volume of cash. Most people I see in shops are using cards nowadays, presumably you can't encourage more to switch?

Ham_and_Jam

3,139 posts

113 months

Tuesday 15th February 2022
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Vasco said:
I don't know the type of business, or UK region, but I'm surprised at that volume of cash. Most people I see in shops are using cards nowadays, presumably you can't encourage more to switch?
You’d be surprised at how popular cash is in certain areas / demographics.

I have a retail outlet and we are still at 60% cash : 40% card.

During the last two years we really pushed for more contactless transactions for obvious reasons. It did increase to 60% card :40% cash, but has since reverted back.

There are core hardened cash users, that will probably never use cards no matter how hard they are pressed, and that is there choice (& right).

Interestingly, we see a significantly higher rate of cash use jtowards the end of the month, just before pay day.

Edited by Ham_and_Jam on Tuesday 15th February 09:15

russy01

Original Poster:

4,795 posts

197 months

Tuesday 15th February 2022
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Semi Rural area, expensive products, >75% older male demographic = Lots of cash.

Evoluzione

10,345 posts

259 months

Tuesday 15th February 2022
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Put it under your mattress.

Dr Interceptor

8,167 posts

212 months

Tuesday 15th February 2022
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Cash is a pain in the arse to bank... We use Loomis - cash gets accumulated in the safe, and when we get to certain amount we call them and it gets collected. The rates are lower than paying in at the counter.

Or take it to Jersey and buy a watch.

Freshprince

216 posts

71 months

Tuesday 15th February 2022
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Don’t know what your business is, but in my c-store we have a self-filling cash machine, so stick it in there and gets paid back to us plus service fees (5k+ p.a).

jeremyc

26,112 posts

300 months

Tuesday 15th February 2022
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Keep it, and pay yourself and staff in cash?

hyphen

26,262 posts

106 months

Tuesday 15th February 2022
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russy01 said:
Whilst I’d love to spend the cash personally I’m talking about £24k in little over a month! You’d struggle to make a reasonable dent in it unless you had a severe habit!
...
It's your own fault for being a goody two shoes and putting it all through the books biggrin







getmecoat For the benefit of HMRC investigators reading this, it's a joke and no I don't have a cash business.

russy01

Original Poster:

4,795 posts

197 months

Tuesday 15th February 2022
quotequote all
hyphen said:
It's your own fault for being a goody two shoes and putting it all through the books biggrin


getmecoat For the benefit of HMRC investigators reading this, it's a joke and no I don't have a cash business.
Maybe there is £50k cash a month coming in and the £26k I bag covers my addictions wink