Best business deposit account

LouC

Hi there

I currently have my business reserves in Abbey, but they've just released their latest interest rates, and they are dire (1.5% in reserve account, 2.5% in time deposit)

I know most interest rates are low at the mo, but does anyone know of anything better. I've got perhaps 80K to put away.

I've also heard that you can just take out a commercial account (ie just a normal savings account) - is that correct? As an IT contractor i'm always IR35 wary.

Any advise greatly appreciated

Lou

nrsql

Cater Allen
Bank of Scotland

mbamick

Hi LouC

I think that this will be a common dilemma. I have my business current and deposit account with A&L. Their rate has dropped to 2.02% on the deposit account.

Moneyfacts provides a Best Buy list for Business Investment Accounts [interpret "investment" as "savings" or "deposit" account]. See: http://www.moneyfacts.co.uk/business/bestbuys/business-investment.aspx

The best interest rate looks to be Allied Irish at 4.5%. I've been checking out the T&Cs at: http://www.angloirishbank.co.uk/Treasury_Services/Business_Deposits/Terms_and_Conditions_-_Premium_Business_Deposit_Ac/Terms_and_Conditions_-_Premium_Business_Deposit_Accounts.html

But remain undecided at this stage.
Kind regards
Mick

LouC

Thanks very much for the info - much appreciated

cottager

For OH we had been wondering about the Business Savings Account offered by Standard Life. See http://www.standardlife.co.uk/content/savings/business/business_index.html
But predictably the rates have dropped recently.

Still, they offer other business accounts as well, including a notice account and a fixed rate bond, so it may be worth a look to see if there's something there of interest to you (from the point of view of perhaps splitting off some of your funds).

martinman3

Scottish Widows Bank has very recently announced a new "Business Fund Deposit Account" which has a guaranteed rate which is linked to its own base rate, not the BOE one, until 31st Dec 2012. It also has a bonus of 0.5% for the first 6 months (though not sure if from announcement or opening of account). Operates by phone or post, deposits/withdrawals using BACS to/from a linked current account which can be with any organisation.

http://www.scottishwidows.co.uk/bank/savings/business_fund_intro.html

The rate before the last cut was 3.50% AER including 0.5% bonus. Rate will not be less than 0.25% below Scottish Widows base rate until 31st Dec 2012, currently 2.00%. But their website has not been updated to correctly show what the current rate is.:mad:

Edit: I have just been told on the phone that the rate will be adjusted on 1st Jan.

Note that Scottish Widows Bank has a separate FSCS license from Lloyds TSB and depositors will be protected by FSCS up to £50k if they are a small business with an annual turnover of less than £1m. Larger businesses are not protected by the FSCS.