Business bank savings with instant access

ThomasGullen

Hello! We're a UK business looking for a business bank savings account with instant access. We are currently with ING direct who provide 1.99% AER but this is ending this December and it gets reduced to 0.5% AER so are looking at other options. The amount we have to save is significant so it's definitely worth my time looking around.

It seems that anything over 1% AER is hard to find, but I did spot the "Business Instant Access Savings Account" with the "State Bank of India" (can't post links!) who have a premesis in London it seems.

1.5 AER with instant access and no fees from what I can see.

What I would like to know is if our money is as safe in this savings account as with ING Direct, or if we're running any additional risks by picking a bank that originates in a different country?

Thanks for any help/advice!

Freecall

Welcome to MSE.

We are in exactly the same position with ING. It would seem that no other account will be available with them after December.

The State Bank of India is a member of the Financial Services Compensation Scheme so it should be ok for the £85k protection.

Not sure if it is the best around though as I haven't really started looking yet. I will be interested to see what pops up.

Here is the link for others who might want to look.

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ThomasGullen

Thanks for reply. This £85k protection, if we put significantly more than that in and the bank goes bankrupt are we basically screwed? I'm not sure what India's position is on bailing out banks. Finding it hard to weigh up the risks.

opinions4u

if we put significantly more than that in and the bank goes bankrupt are we basically screwed?

Correct............

ThomasGullen

Past a certain point then, isn't it safer to invest the money in low risk stocks/shares? I don't feel comfortable knowing that our money past £85k is at risk of total loss.

block10

I use Aldermore business saving account with 1.10% easy access. It has no min balance requirement (£10k- for annual fee to be waived) unlike SBI.

Aldermore also have 1 year fixed @ 1.6% with one free withdrawal (up to 25% of balance)

Freecall

I understand your concern regarding the £85k limit but this is the current situation with your ING account so nothing will change.

As for investing in the shares of other companies you would have to check your company's Articles to see if it is permitted. The pro's and con's of one company buying shares in another sounds a bit beyond the normal MSE remit though.

jimjames

ThomasGullen wrote: »

Thanks for reply. This £85k protection, if we put significantly more than that in and the bank goes bankrupt are we basically screwed? I'm not sure what India's position is on bailing out banks. Finding it hard to weigh up the risks.

Does FSCS cover businesses? It depends on size so you may not even be covered anyway.

http://www.fscs.org.uk/what-we-cover/questions-and-answers/qas-about-deposits/#Is_a_business_covered_if_the_bank_or_building_society_it_holds_money_with_fails_

Freecall

jimjames wrote: »

Does FSCS cover businesses? It depends on size so you may not even be covered anyway.

I think that we had to assume that the OP was referring to a 'small' business (ie. worth less than £3 million with turnover less than £6 million).

If this is not the case them I would suggest that the whole discussion is well outside the MSE arena.

On the original point however I am sill interested in what rates are kicking around at present. The ING 1.99% was the best a year ago. Before that Anglo Irish was about the best but they have pulled out of the market as well.

jimjames

Freecall wrote: »

I think that we had to assume that the OP was referring to a 'small' business (ie. worth less than £3 million with turnover less than £6 million).

Agreed. I thought it worth pointing out just in case as it was referred to as a "significant sum" which could be open to interpretation.

It also wasn't very easy to find out on the FSCS website so others may not be aware.

opinions4u

Freecall wrote: »

I understand your concern regarding the £85k limit but this is the current situation with your ING account so nothing will change.

Depends where the money is, who holds the banking licence and what the view the government of the day would have towards bailing out:

a) Customers under that banking licence with more than £85k
b) Business customers under that banking licence