company savings - safest place

diveleader

Apologies if this has been asked before, I searched and couldn't find an answer.
A relative of mine has 500k in the HSBC (in ltd company current and savings accounts) from the disposal of rental property.

Where would the safest place for this to be kept - I'm thinking of government backed savings for it.

They do not want to repurchase any more property at this stage, so the funds could be tied up for approx 3 years

Many thanks

diveleader

Anybody with a view?

richardlionheart

Seek advice from an IFA

silvercar

I posted similar question on the tax board.

Assuming the company is classified as a "small company" turnover under 6.5m, less than 50 employees and balance sheet under £3m (you may only need to satisfy 2 of these), then FSA/ FSCS guidelines suggest that the company would be covered as an individual ie first 50k of savings protected. This being the case you would just need to spread the dosh around.

corngoat

Hi Silvercar

An interesting post as I too have been worried about the money in my Ltd. Company - about £40K. do you have a link to the site where this is stated?
:beer:

diveleader

Thanks Silvercar.
Anyone with thoughts on any savings backed by the government?

I,_Brian

HSBC is one of the safest banks out there - while indeed it appears savings would only be protected to £50k, so far HSBC stock has not been in the least bit depressed through the recent financial turmoil.

In fact, on a year on year comparison, HSBC only lost 3% of share price, as opposed to the second best - Barclays - who lost 56%.

Personally, I decided the least risk would be to pay a fat dividend and overpay my mortgage.