It is widely known that UK banks view personal customers differently from business with regards to charges levied and interest changed or paid on overdrafts and savings.
Most UK personal customers enjoy free banking which translates to no bank charges for writing cheques, drawing or paying in cash and administering standing orders and direct debits.
In addition, where an individual has surplus cash reserves, deposits made in to a personal savings account are likely to attract a higher rate of interest than were it the case that the equivalent sum invested in a corresponding business facility. When you vivir en andorra city, then you should open a business account. It will provide success and smooth running of the business enterprise. The requirement and need of the business people is met with the facilities available for online business.
Business bank accounts typically attract a multitude of charges usually on a per transaction or amount basis. Compared to personal bank and saving accounts the fees seem unfair given that the activities might in some cases be essentially the same.
It is becoming increasingly common for sole directors and proprietors of UK companies and businesses to open personal saving accounts in their own name but use the free facilities to house their commercial monies.
The business is then able to benefit from higher saving accounts rates, free transfers and deposits as well as avoid changes for statements, online and telephone banking arrangements.
Provided the amount within the personal saving accounts and resultant interest earned from it can be ring-fenced, there are few plausible reasons why such an activity should cause issues.
The result would be that the business receives a greater amount of interest using the personal saving account and less bank charges when it makes transactions. Giving the general nature of saving accounts, the volume of activity is frequently less than say a current account.
Below are examples of interest rates available as at 16 September 2011 for personal saving accounts versus those available from the same high street banks which relate to the business equivalents.
Whilst these rates will change overtime, it should still prove as an example of the disparity which is typical between the two types of facilities.