Best Bank

[reddog]

Hi I'm new to contracting. Been looking around on the boards and it looks like the best banks for a business are Abbey or Cator Allen. Both seem to offer similar terms and rates (though the reserve rates are'nt competitive compared with a person savings account - is there another way of storing money in your company?). Can anyone suggest which is the better? Or even another option?

I'm 30 (need to make some cash while the work is still there!) and plan to contract for 5-7 years while getting as much cash into the business as possible before folding (hence want the best banking deal), does this seem like the best approach tax wise?

[DimPrawn]

Abbey owns Cater Allen. Cater Allen has NO Internet banking which is a massive pain in the arse.

[VectraMan]

Abbey owns Cater Allen. Cater Allen has NO Internet banking which is a massive pain in the arse.

Yep - completely unnacceptable IMO.

I went with Barclays setup by the company formation agents, but that was also a pain in the arse. I'd advise walking down to your local high street and go see whichever bank you feel like. They're all more or less as bad as each other, and it'll be less painful if it's one you can easily get to.

One good thing about Barclays for me is my personal banking is also Barclays, so I pay myself online and it takes no time at all. One bad thing is that I've asked them for a deposit account no less than three times and they've ignored me every single time. Grrrr. And because I've ended up with one in Manchester I can't go shout at them - see above Re: going to your local high street.

[reddog]

cheers guys - I get the picture - high st it is then

[planetit]

You’ll earn about twice as much interest with Cater Allen compared to Abbey (and Barclays will actually charge you for looking after your money).

Take your pick, but to suggest that they are all the same is nonsense.

[VectraMan]

You’ll earn about twice as much interest with Cater Allen compared to Abbey (and Barclays will actually charge you for looking after your money).

Take your pick, but to suggest that they are all the same is nonsense.

I can't help feeling that if interest and banking charges are significant to your business you're doing something wrong.

[hyperD]

I think if I had £50,000 sitting waiting for the HMR&C, I'd prefer a years worth of interest on it (~£2000 with Cater Allan).

But hey... my wallet is full of moths!

[DimPrawn]

I pay no bank charges with Cater Allen on my IT contracting company account and actually earn over a £1000 interest over a year, so if you don't fancy a "free" grand, go with the highstreet business bank account and pay 50p everytime you write a cheque or £1 every time you receive a BACS payment.

[Spartacus]

The advice to go to the High Street sucks big time. All accounts are not the same. I use Cater Allen myself and highly recommend them. No charges and a rate of interest that blows virtually all other business accounts away.

The lack of internet banking is at best a minor inconvenience. Their call centre is on-shore and probably the best I've used. It is directly answered by an English accented human being within two or three rings every time. No IVRs, no menus to navigate, just some bod who answers the phone and asks you what you'd like to do.

[Viktor]

I use HSBC and I'm on free banking at the moment, but after you can use :

http://www.hsbc.co.uk/1/2/business/a...usiness-direct

you have free banking, internet & telephone banking etc.

Regarding cash with HSBC you can use a standard business savings account or a high interest business account if you have over 5.000 cash savings (above 4 % interest). You have all details on the website...