Horrified by savings rates

poppysarah

I've got business money in a Co-op fixed term thing that ends in a month. They've kindly sent me a list of interest rates if I want to reinvest it with them.

After I stopped laughing at the rates I realised they are seriously insanely low.
1.62% GROSS/AER for 6 months being higher than the 12 months 1.34%

So what do I do with the cash?

I've had a look around and the best I can see is the standard life thing

• Tiered rates from 2.00% - 2.40% variable gross pa/AER

http://www.standardlife.co.uk/content/savings/business/businessnotice.html#premium10day

All suggestions welcome.

I'm thinking about putting 25k on zopa and lending it out ... but 25k is the most you can do with applying for a CCL I think

nrsql

Compared with inflation 2% isn't bad.
Zopa would probably be quite high risk at the moment - anything that gets you much more than top savings accounts will be.

You should also look at how you think sterling is going to perform against other currencies - which will also be reflected in the inflation rate but probaby with lag.

martinman3

One account that doesn't appear in product search websites is the Premier Business Account from Harpenden Building Society, currently 3% gross AER.
http://www.harpendenbs.co.uk/business-notice.asp
I would guess that the rate will fall before end of month but it would need to fall by quite a bit to be worse than the Standard Life rates.

Gorgeous_George

Zopa is fun.

The risk of increasing bad debt in a recession is obvious but by targetting the less risky markets in chunks of £10, the risk is mitigated somewhat.

Time will tell.

GG