Instant Access Savings

phynbarr

As a small business owner it makes sense to me to set aside the VAT I'm due to pay into an Instant Access - ISA? Account? so that it's available when I need it and not sucked into the business. I can put aside a regular amount monthly.

I've done a bit of digging but most instant access accounts limit withdrawals to once or twice a year and I'll be looking to withdraw quarterly to pay VAT

And the bank accounts I've looked limit limit deposit amounts to around £250 regular amounts.

Any advice on best places to look?

thanks in advance

Prism

How about an Aldermore instant access at 1% (variable). I have enough cash to use fixed rate savers which mature just before tax payment time but until then easy access should work ok

badger09

phynbarr wrote: »

As a small business owner it makes sense to me to set aside the VAT I'm due to pay into an Instant Access - ISA? Account? so that it's available when I need it and not sucked into the business. I can put aside a regular amount monthly.

I've done a bit of digging but most instant access accounts limit withdrawals to once or twice a year and I'll be looking to withdraw quarterly to pay VAT

And the bank accounts I've looked limit limit deposit amounts to around £250 regular amounts.

Any advice on best places to look?

thanks in advance

Instant access usually means instant access:cool: ie no limit on the number/frequency of withdrawals.

It sounds as though you have been looking at Regular Saver accounts, which pay better interest, but limit the amount you can pay in each month.

Do you have a current account with Nationwide? If not, have a look at their FlexDirect which pays 5% on up to £2500 for a year. You have to pay in £1000 each month, but you can take it out again immediately. It also gives you access to a Regular Saver, up to £250 each month @ 5%, but crucially, it allows you to make withdrawals.

eskbanker

phynbarr wrote: »

As a small business owner it makes sense to me to set aside the VAT I'm due to pay

[...]

Any advice on best places to look?

If it's business rather than personal money then you should use a business account for it - banks tend to have small print preventing use of personal accounts for business purposes. Some will get away with it but why take the chance, especially if your business money and personal money are all in one account, which, if frozen, would cause significant inconvenience.

See https://forums.moneysavingexpert.com/discussion/5964987/high-interest-savings-for-business-account for a current discussion about such accounts....

phynbarr

Bother. Can't find a way to thank individual posters but thanks for your input. Plenty of food for thought