banking

[murdock]

why 2 accounts?

[wynn]

The idea of two accounts, at different banks, for the business is that if you are running a bit low and you have a cheque rd'd at bank one because a large deposit failed the bank will freeze your account and try to grab any other deposits, you just move these other deposits etc to the account at bank two and no hiccup in your cashflow while you sort out the smelly stuff at your first account.

[Pap_sak]

I am also looking at a dual banking account - being a sole prop helps. FNB has started to charge for putting cash into it's ATMs - bank fees for last month R1300 and I do not even have an overdraft.

Capitec fees VS FNB business

Cash deposits 0.75% around 1.15%
debit card puchases free - think around R6.50
monthly fee R4.50 vs 49.50
debit orders R2.75 vs R14.25 (CRAZY)
Payments/transfers R2.50 vs around R7.50

Then, of course, you get 6% interest on your capitec account and a nothing on the big 4.

I think changing accounts it always a big deal (changing debit orders is the big pain) but doing it over a few months should take the sting out of it - might keep the fnb account though as new suppliers like to have the account in the business accounts name - and capitec still do not allow you to do this....

[AndyD]

why 2 accounts?

Mainly flexibility and it also helps keep costs down by taking advantage of their different charging structures. I haven't used it as a cash flow tool as Wynn suggested yet but that might also be an option if you need it in a squeeze.