advice please?!

Sally63

We have a Limited Company with a high-street bank reserve account holding £85,000.

I would like to transfer it to an account that offers (in order of priority)

1. Security
2. Fairly easy access
3. Good rate of interest

I would've liked to purchase NS&I Income Bonds but it isn't possible to purchase in the name of a Ltd Company, and I'm told my investment must carry our company name.



Any advice would be gratefully recieved!

Rafter

Sally,

The FSCS guarantee and national savings are only geared up for individuals rather than companies.

If you bank is one of the big 5 then it is unlikely to fail but that uncertainty is obviously not much good if you are worried about security.

I suggest you talk to you bank about investing your deposit in gilts (government bonds).

These are as safe as National Savings and the £ itself so your risk would be reduced.

However, their value can rise and fall and you could end up making a loss if you have to sell the guilts at short notice, although you will earn a reasonable rate of return.

The other option is to open a money market account and ask that your money is split up and put on deposit with a number of different highly rated banks each night. That way even if one of these started to get into difficulty it is highly likely it would take a few days to go pop and even if it did go bust overnight only a small amount of your companies money might be effected.

The other solution is to talk to your accountant about some kind of loan/ special dividend or other arrangement that allows you to invest the money in your own name and get FSCS protection - there might well be tax implications though.

Good luck

R.

MrExample

Sally63 wrote: »

We have a Limited Company with a high-street bank reserve account holding £85,000.

I would like to transfer it to an account that offers (in order of priority)

1. Security
2. Fairly easy access
3. Good rate of interest

I would've liked to purchase NS&I Income Bonds but it isn't possible to purchase in the name of a Ltd Company, and I'm told my investment must carry our company name.



Any advice would be gratefully recieved!

None of the major banks offer decent interest rates for business accounts; even their so-called reserve accounts are pretty poor. I'd feel reasonably safe with any of the major UK banks, however.

james42

Best bet is to talk to your accountant and get a company loan. You can then invest this money in Bonds.