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


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