Company Savings

Dal_Whinnie

I am a director of a non profit company whose income is generated by member subscriptions. The company has excess funds of about £250k and we are looking to get a better return than we currently do from our bank. We are risk averse so do not want to put the money into anything speculative. We have looked at interest rates for bonds and investment accounts with other authorised banks but in each case, we would need to register each directors details and verify their identity. Given that their are 15 directors this would be an administrative burden for the Admin Team.

Does anybody have any alternative suggestions?

jimjames

Dal_Whinnie wrote: »

Does anybody have any alternative suggestions?

Stick with your existing bank? Have you asked if they have any suitable accounts?

If others require validation of all signatories/directors then you'll either have to do that are stay where you are.

Work out how much extra you'd get each year and see if it is worth the hassle.

isofa

We use an account from Aldermore for this very purpose (although we aren't non-profit, just a standard company) so you might get an even better rate.
http://www.aldermore.co.uk/business/business-savings/
Incredibly simple to operate online. Our bank couldn't offer anything like the rate, in fact mostly near to zero, so we now keep all our cash, other than a float for expenses and wages in the business savings account. We are getting 1.5% a year, but I suspect non-profit companies may be offered higher. They have a fixed rate at 2% too. Several good small banks offer business savings, but we were happy with Aldermore.

Edited to add although I believe they need all details of directors, it's operated by the significant owner/director, so might be worth ringing to find out more. 250K will bring in £3750 in instant access and £5K in fixed rate. Got to be worth the hassle of getting some forms signed!

(I'm basing this on our company account with one of the large UK banks, which pays a wonderful zero percent on all balances but is happy to bill us monthly for every single transaction, which I suspect is similar to most companies.)

Borrowedtune

I started a business account with Aldermore a few months back as a place to park surplus cash (following suggestions made on here) as my mainstream business account pays next to nothing.

I am happy with the service. Very easy to set up too.

Dal_Whinnie

jimjames wrote: »

Stick with your existing bank? Have you asked if they have any suitable accounts?

If others require validation of all signatories/directors then you'll either have to do that are stay where you are.

Work out how much extra you'd get each year and see if it is worth the hassle.

Our existing bank pays a very low rate of interest hence why we are looking at possible alternatives.

Thank you

ozzage

Thanks for this post and the responses. I've just opened an Aldermore account as I'm getting 0% in my business current account!

Dal_Whinnie

This site gives details of the best savings account rates and sites such as moneyfacts.co.uk give fuller comparisons including business accounts as distinct from individuals.

I believe the requirement for all directors to verify their personal details is to do with money laundering but it does cause admin problems if, as we do, we have a number of directors.

Thank you all for your comments