So enough talk, i decided to take my Standard bank accounts and go visit FNB. I did go back to Standard bank to compare the 2015 rates.
Cut a long story short, I will be staying with Standard bank and "managing" my accounts a little better.
Standard bank savings account linked to your business account has got a lot more expensive...IF you maintain a R 10 000 plus amount in your account you only save on 5 transactions, which has increased from R 6000 with all transactions free if the balance was kept over R 6000 for the month.
FNB, R200 business bundle would pay you if you only do a few transactions every month.
At the end of the day, if I move my account from Standard bank (which i have had with them for 15 years plus) it will cost me about R 35 a month more at FNB working out transaction on my current bank statements. I dont get an overdraft facility unless I give them my life savings and property and everything else i own as surety. Only after 1 year will they consider an overdraft facility, calculated on my turnover and conduct of my account. They dont have savings account which you can link to your current account for cheaper transactions like EFTs and debit orders. They do however have a 32 day call account which can be linked and is free but you cannot use it do any transactions.
So as a small business (sole prop) these are my bank accounts and the reasons.
Business cheque account...which is used to collect customer payments and to make large monthly efts.
Business savings account...which a lump sum (cost R5.00 to transfer) is moved from the cheque account to run debit orders (being small business I dont always get my payments on time so the debit orders are returned at half the cost of the cheque account) and smaller eft payments at R1.50 cheaper per transaction than the business cheque account.
Credit card which I transfer (cost R 5.00 to transfer) an amount which is used when i need to swipe a card (card swipes are free) for payments, big saving compared to the business cheque account card swipes.
Elite account...for personal use (cost reduced to R95.00 per month) lots of free stuff for example card swipes, cash withdrawals etc.
I have been searching for a post like this to assist with making a decision as to which bank would suit me as a small business, not even the banks can tell without actually going there and comparing for yourself. I decided to go do it myself.
Am i doing it right, have I made all the right choices, who knows it is the best I could come up with my limited knowledge.
One thing to remember, once tired up with credit cards, overdraft limits etc you pretty stuck with whoever you are with until you can pay up the outstanding balances or prepared to sign over your life savings or investments.
I am surprised that neither one of the banks are prepared to offer me a small loan to cover cover my overdraft and credit card so that i could reduce them to zero and pay off as one amount. Once you get drawn into credit it is difficult to get get rid of it especially when times get tough and you find they start loading you with late payment fees, costs and interest. Thank goodness my debit is small and I have enough assets to sell and pay them off.