Top Small Biz Savings Accounts

th_in_gs

I've been looking for an instant-access account that pays better than my bank's terrible deposit account rate. The best I've found is with Northern Rock - their Business Reserve account* (the only business account they still offer, I think), which is currently paying 1.25% AER and is operated by post. It's open to sole traders and limited companies. It offers unlimited, no-notice withdrawals, with the only caveat being that they have to be for over £1000. You need to deposit at least £10,000 to open one.

I'm in the process of opening one now, and it's going very smoothly so far.

*Can't post a link because I'm too new a user, but you can easily find it with Google - just search for "northern rock business reserve".

malc_b

Standard life bank, www.standardlife.co.uk , have business account instant access (or 10 day for a touch more interest). If you opt for only internet access (limited phone withdrawals, 3 pa?) . They pay 1.37% / 1.65% for 1-50k. Any amount withdrawals or deposits.

From 1/10/10 for new accounts the options are 1.1% for a 10 day internet only or 0.5% for instant phone/internet.

FredHead

I'm unsure if the FSCS covers £50k deposits in savings/deposits of certified institutions for companies with a turnover of more than £1m. The advice seems contradictory from MSE and FSCS. What am I missing here?


MSE SAYS:
Savings Safety
The protection your limited company’s savings are due depends on your firm’s turnover.
• Annual turnover under £1,000,000.
• If you have a company with turnover under a million pounds, money in UK registered banks – all the above are - has the same £50,000 per person (company) protection as private individuals (see the Savings Safety guide). So if you’re saving more than that, for ultimate safety you need to spread it over different accounts.
• Annual turnover over £1,000,000
• Here you have no guarantee at all, so it's a question of considering or even taking advice on mitigating risk. The spreading your savings philosophy is quite a good one here too though, as it does mean the risk of losing all your cash is diminished.


FSCS WEBSITE 25/05/10 SAYS:
Is a business covered if the bank or building society it holds money with fails?
FSCS was set up mainly to assist private individuals, although some smaller businesses are also covered. Larger businesses are generally excluded, although there are some exceptions to this (for example for claims in respect of certain compulsory insurances). Our rules tell us which claims are eligible and form part of the FSA's Handbook of rules and guidance, under Redress, Compensation.
As an indicative guide only, for the purposes of deposit and investment claims, smaller companies are protected. A smaller company must meet two of the following criteria (as set out in section 247 of the Companies Act 1985 or section 382 of the Companies Act 2006 as applicable):
• Turnover: not more than £6.5 million
• Balance sheet total: not more than £3.26 million
• Total number of employees: not more than 50
For claims made under an insurance contract, small businesses are protected. A small business under the COMP rules is one that has an annual turnover of less than £1m.
The same levels of compensation apply whether the claimant is a private individual, small business, or a small company.

stphnstevey

th_in_gs wrote: »

I've been looking for an instant-access account that pays better than my bank's terrible deposit account rate. The best I've found is with Northern Rock - their Business Reserve account* (the only business account they still offer, I think), which is currently paying 1.25% AER and is operated by post. It's open to sole traders and limited companies. It offers unlimited, no-notice withdrawals, with the only caveat being that they have to be for over £1000. You need to deposit at least £10,000 to open one.

I'm in the process of opening one now, and it's going very smoothly so far.

*Can't post a link because I'm too new a user, but you can easily find it with Google - just search for "northern rock business reserve".

Anglo Irish Bank
http://www.angloirishbank.co.uk/Business_Banking/Business_Deposits/
2.25% Instant Access

or for higher rate but more notice:

Secure Trust
http://www.securetrustbank.com/savings/60-day-variable-interest-savings-account.htm

Slinky

It would appear the Secure Trust bank 60 day account has now closed, and the 120 day accounts are only open to individuals now.

juwlz

Willowtree wrote: »

We have a small Limited Company that has to pay in to the current Company bank Account, mainly cash as opposed to cheques and credit card payments. We haven't yet found a Bank Account that caters for the paying in of Company cash without big charges for the paying in of cash. Anyone know of any?
Also looking for a Company Savings Account with easy access that pays a decent rate.
It is definitely more difficult with a Limited Company as a sole trader can use a personal account.:j

We're in a similar position, and although we are a sole trader, for various reasons we're looking for something that doesn't involve personal bank accounts. (Apart from anything else, I handle most, but not all, of the banking and am one of the signatories on our main bank account and the Nationwide Business Investor account, but I am not the owner of the business.)

Cash is a relatively small, but significant, proportion of our takings. We've typically been paying in £1600-£4000 per week (depending on takings).

We have been using the Nationwide Business Investor account for many years, but this month (September 2010) they have introduced rules that limit the number of deposits to 2 per month, and £10,000 for the month in cash. This means that we're forced to bank £5,000 at a time (and carrying that amount of cash to the bank at once isn't covered by our insurance), and keep a large amount of cash on the premises until we can bank it.

The Alliance and Leicester free Business Bank account limits cash deposits to £3000 per month (and max £1m turnover, which counts us out anyway - just).

The Co-op's free banking for FSB members also charges for cash deposits over £4000 per month.

The vast majority of business bank accounts charge so much for cash deposits that any interest earned is far outweighed by the paying in charges.

All we really want is an above-board place to pay our cash into each week without incurring charges for doing so. Obviously, it needs to have high street branches (in Berkshire / Oxfordshire) for us to pay into. We'd be happy to divide the cash deposits between the existing Nationwide Business Account (i.e. to pay in one week's worth of takings twice per month) and pay the other weeks' takings into whatever else we can find.

We could either leave the money there if it earns at least a small amount of interest, or write a cheque or use internet banking to transfer it to the Nationwide Business Investor without penalty.

Does anybody have any up-to-date suggestions?

meunier

Most of the information on this file is now out of date. If you are a charity there is the Cater Allen Private Bank who for amounts of £50K and above are offering 2.5% for a twelve month bond. They have their own licence and the chap said that Santander was guaranteeing 100% of all funds in these bonds (although I would only go by the FSCS coverage set to advance on 1.1.11.

oscarhugo

Harpenden BS's Premier Business Account ( www.harpendenbs.co.uk ) pays 2% on a minimum deposit of £5k. You can't do it on-line however - it has to be by post/phone or in person.

Premier_2

oscarhugo wrote: »

Harpenden BS's Premier Business Account ( www.harpendenbs.co.uk ) pays 2% on a minimum deposit of £5k. You can't do it on-line however - it has to be by post/phone or in person.

It's not bad but you have to maintain at least £5k in the current account.

Cheques take 6 working days to clear (instead of the usual 4 elsewhere)

You can only make 25 withdrawals per year before (otherwise they charge)
(edit: £5 per withdrawal once the 25 free transactions have been used! :eek:

There might also be a 50p fee for any cheque withdrawal for less than £100, even within the 25 'free' transcations - you should double check this)

Obviously being a small BS access to branches, and hence branch services such as cash withdrawal, is limited.

There doesn't appear to be any online access, so if you are not close to a branch, then it's phone or post (or fax if you've set this facility up with them)

stphnstevey

Premier wrote: »

It's not bad but you have to maintain at least £5k in the current account.

Cheques take 6 working days to clear (instead of the usual 4 elsewhere)

You can only make 25 withdrawals per year before (otherwise they charge)
(edit: £5 per withdrawal once the 25 free transactions have been used! :eek:

There might also be a 50p fee for any cheque withdrawal for less than £100, even within the 25 'free' transcations - you should double check this)

Obviously being a small BS access to branches, and hence branch services such as cash withdrawal, is limited.

There doesn't appear to be any online access, so if you are not close to a branch, then it's phone or post (or fax if you've set this facility up with them)

Wouldn't work as a current account as to few withdrawals for day to day things, but could form a good savings account