investing service charge funds for flats

Alex_Jackson

Hi

I recently bought a flat which requires payment of a monthly service charge, as is normal. I just found out that the funds are paid into a Barclays account which seems to be quite a bad deal - it pays no interest, I think it charges an annual account fee and it charges for every cheque that is paid out.:mad: Given that they have the benefit of our cash year on year, I am surprised by all of these costs and the fact that no interest is paid. I've looked at Martin's advice on the best current/ savings accounts etc.., but I assume that these can only be opened by individuals. Does anyone know if there are better accounts that can be used to invest such funds?:beer:

cheers

Alex

Mikeyorks

Alex_Jackson wrote: »

I think it charges an annual account fee and it charges for every cheque that is paid out.

Presumably that's because it's a business account? If this is a management company .... is it in your jurisdiction to suggest where and how they hold the funds?

If, on the other hand, it's a 'Resident's Society' - then a Treasurer Account / Trustee account might fit the bill {Search on the Current Accounts forum using (Treasurer Account)}. But current interest rates on those are unlikely to be much outside the window of 0.1% ---> 0.5%.

Mikeyorks

Duplicate thread : :rolleyes:

http://forums.moneysavingexpert.com/showthread.html?t=1402395

Alex_Jackson

Thanks for your response. I think it may be a business account, yes - is this quite usual for business accounts?

I'm a director of the management company along with the two other flat owners, so luckily we do have to power to move accounts if we wanted to.

I'll have a look into the treasurer accounts, thanks for suggestion, but I wondered if there are any other accounts where companies can save to get a better rate of interest and ideally where it is not necessary to pay an annual charge?