Best savings scheme for a business?

Fuzzcat

My Ltd company is building quite a lot of cash that I won't need for some time. The business savings account is giving 0.05% interest - what's the best return on this money (£20k+)?
Can I lend to e.g. UK Government (don't want a risky dodgy deal)?
Thanks

Borrowedtune

Thanks for raising this topic: I hope there are some replies as I'm in exactly the same situation.

mulronie

Unfortunately rates available to business are generally lower than those available to consumers - one reason being that businesses are more likely to be "on the ball" and so won't continue to leave large balances after an initial bonus period runs out.

However there are still half-decent rates out there, just use a comparison site like this or this!

Small businesses enjoy deposit protection under the FSCS government scheme, up to £85k, provided the bank is a member (most are, but check), and:

• Turnover: not more than £6.5 million
• Balance sheet total: not more than £3.26 million
• Total number of employees: not more than 50

Barbeduk

I might open that Bank of Cyprus fixed rate bond moneysupermarket recommend.

scooo

Aldermore
2.15% on 1Yr fix or 1.5% on Easy Access.
Service is good and staff very helpful, unbelievably it's almost like they appreciate your custom!

dhs87

scooo wrote: »

Aldermore
2.15% on 1Yr fix or 1.5% on Easy Access.
Service is good and staff very helpful, unbelievably it's almost like they appreciate your custom!

Saw their ads all over the Metro last week. Thought it'd be worth another mention.

DJBenson

It's a shame that Barclays are killing off the ING brand as that is currently paying me 2% on my business savings (average balance 10K).

I take it this money is for tax (VAT/corporation tax)?

If any of the money is in excess of tax liabilities, you'd be better withdrawing any retained funds as dividends (up to the relevant limits) and sticking the cash in the best personal savings account.

I know a lot of contractors like to retain their "warchest" in their company account but I'd rather withdraw it and put it in the best account possible.

Since starting my business in August, I've taken out almost £20k in dividends between myself and my wife and have all the money in a mixture of accounts (personal ISA's, Nationwide FlexDirect, Lloyds Vantage etc.) so all paying in excess of the best business rates.

Borrowedtune

Thanks very much for the tips re Aldermore.

I am now intending to open an account with them as a place to park the funds for next year's Corporation Tax bill.

Borrowedtune

Just had an email telling me that Aldermore are cutting their instant access business interest rates starting from 1st July.

planteria

some folks take spare cash out of their companies, stash it in a higher rate personal account, and then put it back into the company by year end to keep the books and 'Director's Loan Account' straight.

ozzage

Some folks would be better served keeping their company money properly separate from their personal, technical legality aside.

I second Aldermore. I use them for exactly this purpose and they are very good. But then I haven't had this email yet...