banking ethics

[wynn]

I opened an 'EFFINB' personal cheque card account, R99 PM no further charges unless I draw cash from another bank ATM.
I even charge items as low as R12 for free.
Obviously it is like a debit card where you have to have funds available but they will negotiate an overdraft if you want which I didn't.

I now transfer funds from my business acc via eft which is a lot cheaper than paying the client direct then I pay suppliers from my 'EFFINB' cheque card which costs nothing but t the same time I earn 'e-bucks'

System suits me until they change the playing field again.

[Darkangelyaya]

Maybe it is time to swing by Capitec.

Just try them, honestly, the times of your business having 'credibility' because you are banking with a 'reputable' banking institution, are long gone.

Obviously, Capitec doesn't offer business accounts per se, but, like I said, they really don't care what you name the other savings accounts.
They also offer a Mastercard-backed debit card, which means you can do online purchases too. And they offer almost instant loans, so if you build up a relationship with them, I'm sure you can have access to whatever credit you may need.

The business of banking is extremely competitive, and you will see that they will come to you, if you ever need vehicle finance or bonds. Anyway, Capitec is in the process of expanding in that direction too, last I heard. (Yes, it's a savings account; but honestly, who really uses cheques anymore - except for one IQ challenged client of mine who always 'forgets' to draw cash when I deliver firewood).

[Blurock]

No business matters should be conducted at a branch any more. A banking branch is really just a manual ATM. Do you still use cheques? What? Do you still stand in queues? What???!

We live in the space age now. Convenience is what makes one business stand out above another. The same applies to banks. If a bank is not willing to come to you to open an account and switch the debit orders, they are not worth dealing with.
Deal only with the business bankers for business (they are not all clued up, but its better than standing in a queue).

[ians]

Clearly you dont bank at Standard Bank.


That was going to be my next question, as a sole proprietor, do i have to have a bussiness bank account, why cant i have a bank account in my personal name? I was told by the bussiness banker that i cannot run my bussiness through a personal cheque account, i dont believe it, but maybe some of our more educated tax consultant and legal people can advise us a little better. I dont have a personal account and do everything through my bussiness account maybe it is time to change it and save tons of money.

[Darkangelyaya]

Clearly you dont bank at Standard Bank.


That was going to be my next question, as a sole proprietor, do i have to have a bussiness bank account, why cant i have a bank account in my personal name? I was told by the bussiness banker that i cannot run my bussiness through a personal cheque account, i dont believe it, but maybe some of our more educated tax consultant and legal people can advise us a little better. I dont have a personal account and do everything through my bussiness account maybe it is time to change it and save tons of money.

There is no reason why you HAVE to have a business account. Using one account for everything just make bookkeeping a bit more of a challenge, but then you've been doing that anyway, right?
Hence my firm belief in Capitec. If you want to keep finances more separate, then open savings in your name, and linked savings in 'your business' name.
I have income from private healing sessions etc, that I don't charge VAT on, and that gets put into my personal account, and declared as cash income to SARS.

[Dave A]

I think Standard Bank is starting to take notice of their client defections to other banks. A couple of months ago I got a call offering a bundled deal on my personal banking products which was a pretty good deal all told. When I asked why the sudden interest in saving me money, the answer was they didn't want me to be tempted to go elsewhere.

Once all the changes were sorted (the deal affected 4 personal banking products I have with Standard), I thanked the representative concerned and asked when they'd get around to getting competitive again on their business banking costs.

Like any good rep she feigned surprise that they're more expensive than anyone else at the moment... and given that she'd just saved me far more money than I would by switching my business accounts - well, I'll give them a chance to get around to it for a while longer, methinks.

At least until I don't need an overdraft facility on my business accounts anymore - at that point switching becomes dead easy.

As a bare minimum, I hope the tide is turning on all the new charges banks have been introducing in recent times with seeming impunity. The new entrants are definitely rattling some cages.

[Darkangelyaya]

Unfortunately my last remaining bond is with them. Dry toast till that's off my back.
Can anyone verify if additional payments on bonds could still be used to reduce capital?

[Blurock]

Unfortunately my last remaining bond is with them. Dry toast till that's off my back.
Can anyone verify if additional payments on bonds could still be used to reduce capital?

Not too sure about Standard bank. Safe too ask them first. Interest should be calculated on daily outstanding balance and capitalised monthly, but some banks may still hide behind archaic systems and obscure clauses in their contracts. Definitely an area that should be investigated and taken up with the ombudsman if necessary.

I used to have a bond account with Absa. What irritated me was that you only received a bond statement once a quarter and that transactions were only reflected for that period. You could never get a print out or statement reflecting all the transactions for the year. I believe the same applies to vehicle finance. So if you want to reconcile your accounts, you have to gather all the scraps of paper. Banks suck!

[Chrisjan B]

I had a bond with ABSA (with access bond type facilities) too which was linked to my online banking profile and I were able to deposit and withdraw money via Internet Banking. All extra payments were available to withdraw as I have seen fit. It was a source of low interest loan - we even bought a car and paid it via EFT. You could not make payments directly from the loan but the money could be transferred to my credit card or cheque account and the EFT done from there... I was also able to check my balance daily if so wish...

Darakangelyaya to the best of my knowledge you pay interest on the outstanding amount of your bond, so any additional payments should save some interest - it use to be like that when I worked at ABSA some 17 years ago....
You will want to confirm it with your bank.....

One reason I still have accounts with ABSA is that I can transfer funds from my credit card to my business account as needed and transfer it back to credit card if and when needed...
It is not as cheap as the bond option above but I don't have to beg for credit from His Majesty or M'Lady....

This is the longest post I have ever done on TFSA.... and not even some of my twisted humor!

[ians]

I have a credit card with ABSA bank and it is part of the fine tuning, getting rid of it.

My plan is to find out more about running my bussiness through a personal account and sterr in that directions, i dont see why i cant as i am a sole proprietor, i will keep the CC namk account as a bussiness account.

A question while on the Vat subject,

if i am registered with VAT as a sole proprietor must i charge VAT for my hobbies which have nothing to do with main line of bussiness or can i have a saving account and buy and sell products without declaring VAT for sales or claiming VAT for purchases?