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After a few years my bank have decided I can't receive work payments into my current account as I'm self employed. Looks like I need a proper business account. I do very little banking so would rather not pay much for this. What options are out there. A quick google finds lots of 'free' ones but it turns out to be a introductory offer rather than long term.
Faced with this choice last year we went with HSBC, free for a period while we find out if the business is really worthwhile and the fees don't look too ruinous after that. I doubt there is anything truly free for the long-term (but in the long term we are all dead anyway). It's worked well for the year we've been active, there was a bit of a kerfuffle in setting up relating to identity documents but that all worked out ok in the end.
Starling bank
Lloyds as Self Employed or Natwest if a business.
The bank can't tell you that you can't receive payments though even if you are SE - they just want to charge you thats all.
Who are they to say why XYZ company is depositing £?.....
I haven’t worked in banking for a while now, but AFAIK you don’t need a ‘business’ account to run a business through it.
Unless there’s a compelling reason to use a specific bank (if for instance you pay in cheques and want to use the bank at the end of the road)
I’d get a ‘basic’ account, they were devised about 10 years ago to ensure that anyone, whatever their circumstances could get an account. They’re good because you can’t under any circumstances go over-drawn and they can’t charge you for using them for anything ever.
They’re not well publicised, but they have to offer them. Services are usually limited to debit/atm card and online banking. No Chequebook or ‘free’ insurance etc.
I asked at my bank (Barclays) as I've just started my own business - all payments are online via transfer or Paypal. I got told I needed a 'business' account. I told them that'll be the end of my business then...
You won't get any debit facilities with a "Basic" account - no pay at till, etc.
You'll have to withdraw the cash on the way in and hope you don't overspend.
Have a look at http://tide.io
Doesn't take long to set up, 20p fee on each imbound payment and £1 for cash withdrawals IIRC.
You get a debit card that you can use for business payments and the app works well.
I had the same problem for an eBay store - HSBC identified that they thought I was using my personal account for business transactions. I've opened an HSBC business account which I think is free for the first year.
It actually helps to have business finances completely separate from personal.
As suggested earlier, Starling Bank. It's free.
Metro is free if you keep 5k in there.
With Lloyd’s we were paying around £80 a month now we pay less than £10 a year.
Yesterday I phoned up my branch and ordered some change. At 6.30 in the evening I ran in collected my money and was on my way in minutes.
Superb service.
Yorkshire Bank, 25 months totally free.
I do a lot of cash and it’s saving me 100’s every month.
You won’t get any debit facilities with a “Basic” account – no pay at till, etc.
You’ll have to withdraw the cash on the way in and hope you don’t overspend
Ive had a Nationwide basic account for 8 years, it comes with Visa Debit.
https://www.moneyadviceservice.org.uk/en/articles/basic-bank-accounts/amp
Coop and FSB and you used to get a £25 bonus per year.
https://www.co-operativebank.co.uk/business/currentaccounts/fsb-current-accounts
Online is basic and not particularly modern.
My Santander business account has always been free for my usage as a sole trader. Pay in up to 1000 cheques (who pays in many cheques these days), debit card. No overdraft but I stay in credit anyhow.
I had 2 years free from NatWest and it’s now £6/month.
Also suggest Starling. Free for small businesses under a certain threshold.
I use them for my personal bank account and am just waiting for them to allow multi-director limited company accounts so I can switch away from HSBC and use them for my business as well.
Had a great experience with Starling so far. Conversely, the HSBC Business online banking experience (specifically the mobile app) is one of the worst I've ever had the misfortune to use. And it costs me the princely sum of £5.50 each month for the (dis)pleasure.
I also opened a Tide 'account' a little while ago but have never dared used it. At least not yet. Their support forums are full of stories about accounts being locked without notice, or much explanation. Plus the fact that it's not actually a proper bank account or a bona fide debit card (rather it's a pre-paid card) seems to cause problems with it not being accepted in lots of places where I'd be likely to use it.
I really wanted to give Tide a shot, but it's still at too early a stage for me (and my business).