Farm Bank Account

TPF2012

Recently started farming in my own name and had two accounts, one for salary and home and the other I had farm payments going into. I had no cheque book for either account so I went in to see could I get one for the account I was using for the farm. So basically I have an appointment now to set up a business account which is not what I really want, think there is significantly more charges. What do you people do, surely a current account with a cheque book is enough, for what little transactions I'll be at. Kinda feel the bank is pushing me to a business account. Obviously got payments an ordinary account has been sufficient so far. Any advice, Thanks.

J.O. Farmer

I don't know your particular circumstances but I have a young farmers account with AIB and a personal account that my salary goes into and there's very few charges on the farm account and a lot more on the personal account. I think it's a promotion they have/had with little or no fees for the first couple of years.
Listen to what they have to say, ask about the differences both good and bad and check out other banks too.

TPF2012

With aib as well and under 40 so would qualify for that young farmer account, a little research done in last hour. Are there no charges for the first 2 years on that account?

J.O. Farmer

TPF2012 wrote: »

With aib as well and under 40 so would qualify for that young farmer account, a little research done in last hour. Are there no charges for the first 2 years on that account?

I've it over a year now and I think the only charge I've paid is the stamp duty on cheques and that's unavoidable. I only use those for the very odd thing like paying other farmers. I mostly use the debit card.
I think BOI might have something similar too.

TPF2012

I would be worried after the two years, what they would charge you. But would a current account not do me? No charges if a balance of 2500 is kept. I just see the Bank having more of a revenue opportunity with the Business account.

J.O. Farmer

TPF2012 wrote: »

I would be worried after the two years, what they would charge you. But would a current account not do me? No charges if a balance of 2500 is kept. I just see the Bank having more of a revenue opportunity with the Business account.

Probably charge you standard business rates.That's the sort of questions you need to ask.
You can always change bank in 2 years and I think it's straight forward enough even to change direct debits and everything. I know it was for people leaving NIB a couple of years ago when they were pulling out.
There's probably pros and cons. You might pay more in charges but you might get better rates on borrowing. Someone doing with a higher turnover of money on the farm or some of the financial experts here might be able to explain it better.

Muckit

Credit union. No charges. Ours open on saturdays. Do as many things online by EFT. Go in and get your cheque if u need the odd one. Credit card is great too once keep balance paid off in full.

Timmaay

TPF2012 wrote: »

Recently started farming in my own name and had two accounts, one for salary and home and the other I had farm payments going into. I had no cheque book for either account so I went in to see could I get one for the account I was using for the farm. So basically I have an appointment now to set up a business account which is not what I really want, think there is significantly more charges. What do you people do, surely a current account with a cheque book is enough, for what little transactions I'll be at. Kinda feel the bank is pushing me to a business account. Obviously got payments an ordinary account has been sufficient so far. Any advice, Thanks.

Do you actually need an chequebook? I try to do all transfers by either debit card or etf, 99% of shops (either online or actual stores) have credit card facilities, and utterly everyone has a bank account so can give you an Iban off their statement (and if they don't and they want a cheque they can cash you are probably best not doing business with them)

TPF2012

Timmaay wrote:

Do you actually need an chequebook? I try to do all transfers by either debit card or etf, 99% of shops (either online or actual stores) have credit card facilities, and utterly everyone has a bank account so can give you an Iban off their statement (and if they don't and they want a cheque they can cash you are probably best not doing business with them)

Some of our contractors are old school, I paid them cash last year, just think cheques would leave a paper trail for expenses.

JeffKenna

TPF2012 wrote: »

Some of our contractors are old school, I paid them cash last year, just think cheques would leave a paper trail for expenses.

Did they give you some sort of invoice??

TPF2012

Still waiting on a few, should get them though. Only getting a price for some ploughing I got done last year, what is the story with paying for this in 2017 but being a 2016 expense? 2016 will be my first year doing a tax return so I'm a bit naive.

JeffKenna

Just put them in as a creditor for the year end 2016 and therefore a cost for the year. Make sure to get some invoice from them though.

Water John

Not sure how long more cheque books will last.

Username John

With PTSB - just have a normal current account with em for the farm account.
Have a chequebook which I rarely use, but it's handy to have...
Use the debit card most of the time...

I find the current account fine, small overdraft which is handy at times, but they charge well for when you go in the red...

The only advantage I see with a business account is would it be required if you wanted this sort of credit?

https://business.aib.ie/products/finance-and-loans/farmer-credit-line