Savings accounts for businesses?

bylromarha

Hi all

I have around £5k sitting in my business account for my new start up. The majority of it is money from a Princes Trust loan, others are local grants I've been awarded.

Due to lease issues, my shop premises is STILL not mine :mad:, so this money is just sitting not earning interest. I don't intend to have the lease sorted now until january, so would like the money to earn some interest.

I've just looked at Martins high interest no notice accounts, but they both specify set up with personal accounts.

So my question is

a) Know any good business savings accounts?

OR

b) How will the tax man feel if I transfer the money to my personal account to transfer to a savings account, and then transfer back again via the personal account when I actually need the money for the business?

Any thoughts?

Treading_Water

I think the Federation of small businesses are currently offering a business account with decent interest. But you will need to be a member - something you might like to consider anyway.
Unfortunately you can't get the same interest on business accounts as on personal accounts. I have no idea why - perhaps one of the sites 'experts' can tell us.
I think if you put the money into a personal account it could be construed as misapropriation - particularly as it is grant (not earned) funds.

olly300

Do not put any business money in a personal account unless it's your salarly, paying back expenses you have incurred on behalf of your business or dividends.

You can get yourself into lots of trouble with the taxman. If they decided to investigate you they would legally go through your all business and personal accounts, and may give you a high tax bill and penalities as a result.

HSBC gave me a business current account with a linked business savings account. I suggest you go and talk to your bank and see if they can do this for you.

johnllew

Alliance & Leicester Commercial Bank pays 4.95% AER on £1 upwards in their Business Instant Reserve Account: https://www.alliance-leicestercommercialbank.co.uk/content/SB020057.asp#account55