Business Savings Account - Northern Rock?

PauliPauli

Was looking around for a no notice savings account for surplus business money not earning much interest with our current business bank account

Found the Northern Rock Business Reserve offering 5.4% Gross...

http://www.northernrock.co.uk/savings/business-savings-accounts/

although just noticed that it has suddenly dissapeared from moneyfacts website from this best buy page...

http://www.moneyfacts.co.uk/business/bestbuys/business-investment.aspx

Just wondering why, does anyone have this account or know of a better rate for business savings?

Pauli

interest_Ted

I use the NRK account, as I don't know of a better rate. Drawbacks are that it is post only and statements only every 3 months. But I use it for long term large amounts, and so far have only made deposts and no withdrawals. I wish they would make it on-line, but their on-line banking system (I use for some personal banking) is so archaic that it is probably better to use the post !

For normal 'everyday' surplus money I use Standard Life Bank. We usually make a few deposits each month and at least one or two withdrawals. I find their Business Premium 10 day notice account very good. It is online, reliable, and currently pays a rate of 4.6%. I have given up on their Direct Access account as the amount of notice required makes little difference to the 10 day notice, when forecasting business requirements.

For close in emergency/top up funds, I just use a linked deposit account at the same bank as our current business account.

I have no idea why the NRK account has dropped out of the Moneyfacts list. Curiously I have never used the moneyfacts website to look for business accounts. I have generally used google etc and walked around local banks and building societies.

Note that some local societies do business accounts, usually for local businesses. Can be useful if you are getting hit for bank charges (i.e. cheque deposits) as you can pay in your cheques there and earn interest. But it takes longer for the cheques to clear, and will depend upon your cash flow requirements as to whether it might be worthwhile or not. Nationwide also do a similar sort of account, but you need £5k to get started. I consider these from time to time, but in our case, the savings have never amounted to enough to warrant the changes.

Ted

PauliPauli

We have a business direct account at HSBC which is fine and virtually fee free. its fine for us as we deal mainly with consultancy never cash, but gives a paltry interest rate of 0.1%, so northern rock will complement it well.

Discovered that all these price comparison best buy sites are not as straightforward as they seem .. backdoor methods of assessing who goes on and "methods" for getting yourself listed .. well their not in it as a public service ... got a very "doublespeak" email reply from msfacts as why they were removed !!

Mr_Maker

I am very concerned i run a small LTD company and currently a member of the FSB we use their Diamond savings account which has 40k in it this is Close Brothers Bank in London, i have read that this money doesnt come under the FSA 50k guarentee so if the bank goes bust we have had it, i want a decent interest rate of interest where my money will be safe anyone got any ideas, i would presume Northern Rock would be a good place as its now owned by the government, please any help very much appreciated

soulsaver

Mr_Maker wrote: »

I am very concerned i run a small LTD company and currently a member of the FSB we use their Diamond savings account which has 40k in it this is Close Brothers Bank in London, i have read that this money doesnt come under the FSA 50k guarentee so if the bank goes bust we have had it, i want a decent interest rate of interest where my money will be safe anyone got any ideas, i would presume Northern Rock would be a good place as its now owned by the government, please any help very much appreciated

The FSCS does protect 'smaller businesses' depositors in FSA authorised/regulated UK banks, as per retail investors, to the same amounts £50k.
http://www.fscs.org.uk/consumer/key_facts/limitations_of_the_scheme/

I understand Close Bros is FSA regulated but I'm not sure what 'the FSB' is?

Andy_J_Locos

soulsaver wrote: »

The FSCS does protect 'smaller businesses' depositors in FSA authorised/regulated UK banks, as per retail investors, to the same amounts £50k.

I understand Close Bros is FSA regulated but I'm not sure what 'the FSB' is?

FSB is the federation of small businesses.

Close Brothers do offer a good rate of interest for small businesses - I've just transferred my Diamond account balance there to a better paying 3 year bond - but how safe they are (as a non-high street recognised name), who knows?

With Northern Rock only paying 1.25% now, finding somewhere to put surplus business cash is a difficult in the extreme. Santander had a limited offer 2 year bond paying 3% but that has now closed. If anyone has any recommendations I'd be keen to hear them!

bluesun

Hi
I am also worried that small businesses could not be covered by the 50k guarantee and when trying the link given by soulsaver it just gave me an error.

Does anyone know if we are covered? and if so, can you provide a link to the information?

Thank you

janusd

can't post links, so go to the FSCS site and use the following..

/what-we-cover/products/banks-building-societies/qas-about-deposits/

and you want the last question (14)

soulsaver

Andy_J_Locos wrote: »

FSB is the federation of small businesses.

Close Brothers do offer a good rate of interest for small businesses - I've just transferred my Diamond account balance there to a better paying 3 year bond - but how safe they are (as a non-high street recognised name), who knows?

With Northern Rock only paying 1.25% now, finding somewhere to put surplus business cash is a difficult in the extreme. Santander had a limited offer 2 year bond paying 3% but that has now closed. If anyone has any recommendations I'd be keen to hear them!

I meant I don't know what it is as far as its relevance to the question - regulated deposit taker, or whether Close Brothers is the deposit taker. The link has been moved - it confirms small business coverage here
http://fscs.org.uk/what-we-cover/eligibility-rules/
but typically of gov sites it doesn't confirm a definition of 'small' or point you in the direction of a definition in this statement, but does under the point 14 mentioned in the above post.