Best Free Business Banking UK

I used to have a free business Bank account with HBOS - Halifax Bank of Scotland. However they started charging £15 a month so I looked for an alternative. On their website they say free business banking, but what they mean is that they don't charge for transactions.

RBS made £8.2 bn profit last year (1) so I think the introduction of these bank charges were hardly a vital step to avoid imminent bankruptcy.

The best free business bank seems to be Alliance and Leicester - Free Business Banking. quite happy with this account so far.

Increase in UK Bank Charges

Banks are increasing charges through introducing new types of charges. This is response to the investigations of the FSA who are declaring some bank penalties as illegal. For example customers who were charged mortgage exit fees of more than £65 can claim the excess back.

However to retain profit margins many banks are introducing new charges including

New Bank Charges being introducing

LLOYDS TSB

Introduces charge of £35 for people who use credit card infrequently. Personal loan rate up half a per cent

ALLIANCE & LEICESTER

Jump of 0.4 per cent in loan rates in past two weeks

BRITANNIA BUILDING SOCIETY

Mortgage exit fee up from £75 to £110 in January

CITIBANK

Charging £120 a year for current accounts from 1 May

MINT

Loads up to 1 per cent on to interest for personal loans

NORTHERN ROCK

Loan rate rises 0.3 per cent to 6.1 per cent in January

MORGAN STANLEY

Raising fee for foreign purchases on credit cards from 2.75 per cent to 3 per cent from April

MBNA

Introduces charge of £10 for credit card users in credit last month. A 7 per cent rise in interest rates for personal lending, from 7.9 per cent to 14.9 per cent.

Late Credit Card Payments declared illegal

Last year the OFT - Office of Fair Trading ruled that late payment charges were illegal. Encouraged by consumer groups consumers have been seeking to reclaim some of the £4.7bn which is estimated to have been taken by the banks in illegal charges last year.

Single Mother gets Money Back from Bank

A single mother has personally reclaimed more that £23,000 in bank charges for herself and her friends despite having no financial or legal training.

She received back over £500 for penalty charges made by her bank, the Halifax. She threatened to take them to court unless they would pay the money back. After getting the money back she took on the cases of friends and families in the past couple of years she has neted an amazing £23,000 from banks from false charges.

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Just shows always worth complaining...

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