Business Bank Account - Is a local bank important?

D

Dearg Doom

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I'm starting a new business as a sole trader and am opening an account for it. My bank branch is a long way from where I live and from where I will be running the business. I had intended to open the business account in the same branch just becasue my other accounts are there. Someone mentioned that this would make cashing cheques difficult. With electronic transfers, I hadn't imagined cashing cheques would be something I would need to do much, if at all. Is this something I should attach some importance too and, if so, why? What do people think about having a business account in a different branch to where my personal accounts have been for the last 15 years?
 
Makes very little difference realy. The only advantage I can see with keeping the account with your old bank would be the fact that they know you and if you needed a bit of leeway you would bemore likely to get it where you are known.
 
Thanks jem. My thoughts exactly on the reason for staying with my current bank. I don't see any good reason to switch to the local branch where I have no history. But I'm only starting out on this adventure and wanted to make sure I wasn't missing anything.
 
Hi Dearg

jem says that the only advantage of staying with your old bank is the bit of leeway. This is a huge advantage. You should really have very good reasons for switching banks or branches within the same bank.

Cashing a cheque is a non-issue. You can make arrangements with your local branch to facilitate you if happen to be cashing cheques regularly.

Brendan
 
Thanks Brendan - I'll be sticking with my original plan to stay with the same bank & branch.
 
Dearg Doom

I have gone through the same process recently. My personal bank is the Permanent TSB and located in the city centre. However their business banking facilities are in my opinion quite poor. For example no internet or phone banking facilities which makes checking on balances etc a time consuming task as I had to do so in person.

I looked at all the banks local to me, met with each one. Got their blurp on what they could offer me and any other ancillary services. Finally settled on Bank Of Ireland. They provided me with no charges for the first two years, internet banking and duplicate cheques for keeping track of expendiature. However the main reason for choosing them over the other banks was they seemed more interested in me and my business venture then the other banks.

My advise, define what you requirements from your bank are. Visit the banks, including your own and see what they can offer.

C
 
Capaill,

I too set up a business account with BOI amd got all the freebies that you mention. But be warned - The internet Banking (Business on Line - BOL) costs 15 per month after the first 6 months. Expensive if all you need to do is to check the account balance. My account manager told me to just phone her if I wanted to check a balance. I have cancelled BOL. Just wasnt worth 180/year
 
Thanks Sol28

Will keep that in mind. Mind you spending half an hour to queue in the Permanent TSB to check my bank balance and print a mini statement will cost me more than €15 per month.

Best of luck with your business venture

C
 
We moved from Bank of Ireland to AIB, simply because BoL just did not work for us. AIB's banking online is very user friendly.

Brendan
 
Hi Brendan

I have to admit that I did not consider AIB due to past experience with them as a personal banking customer where I had numerous bad customer service experiences. I vowed never to bank with them again in any capacity.

C
 
With electronic lodgements and internet banking shouldn't matter. I'm shocked though that some charge for internet banking given it saves them so much on over the counter transactions.

I had an ulster bank account at the other side of town but used the local branch for fast lodgements etc. Given the limited number of payments I neve opened a seperate account as a sole trder but just accounted for everything seperately. It worked fine, any over the counter stuff was ok in local branch.

My only grumble is now they've gone and introduced charges!!
 
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