FSCS rules for business accounts?

jenistews

Hello,
With the virus frenzy going on I had some money I wanted to move into a different account/financial institution. The only one I have free right now is a business account.
Can I move money there / how would it be protected / what do I need to do from a business point of view. Classify it as a loan?

I hope you can help/has this been covered before?

Malthusian

jenistews said:

Hello,
With the virus frenzy going on I had some money I wanted to move into a different account/financial institution.

Why? What is different about the bank you have your business account with?

Mixing personal money with business money is likely to be a bad idea for all sorts of reasons.

dunstonh

With the virus frenzy going

The only frenzy is from people doing silly things for no good reason using Covid-19 as an excuse.

jenistews

Malthusian said:

jenistews said:

Hello,
With the virus frenzy going on I had some money I wanted to move into a different account/financial institution.

Why? What is different about the bank you have your business account with?

Mixing personal money with business money is likely to be a bad idea for all sorts of reasons.

Rather I should have said I have more than £85k total, so I want to move some of it somewhere else.
Would it be better to set up another bank account like starling quickly to move?

jenistews

dunstonh said:

With the virus frenzy going

The only frenzy is from people doing silly things for no good reason using Covid-19 as an excuse.

As an independent financial advisor you would say it's best NOT to protect money by moving it to multiple banks now?
This is a silly thing to do is it?
Please explain why, it would be good to hear your professional opinion.

masonic

jenistews said:

Would it be better to set up another bank account like starling quickly to move?

I wouldn't contemplate doing anything else. There are lots of options and you should be able to setup a sufficient number of savings accounts to spread the money around within a matter of days.

bowlhead99

jenistews said:

dunstonh said:

With the virus frenzy going

The only frenzy is from people doing silly things for no good reason using Covid-19 as an excuse.

As an independent financial advisor you would say it's best NOT to protect money by moving it to multiple banks now?
This is a silly thing to do is it?
Please explain why, it would be good to hear your professional opinion.

You can set up an account same day, in many cases online, with loads of financial institutions. 

In that context, moving a bunch of money which is unrelated to your business into your business bank account (which probably doesn't pay as much interest as the top non-business account) and then wondering about the bookkeeping/commercial aspects afterwards... and only doing it because you believe there is a 'frenzy' and your regular bank is going to go bust... seems like a decision being made by someone who isn't thinking straight.

The account that you operate to hold your business funds is not likely to be the best place for your non business funds, there is no reason to rush to use it for some inappropriate purpose for the sole reasons that it's a(a) available to you and (b) you are panicky. In such cases you are best served by taking the free advice from the professional who reckons you shouldn't do things for no good reason while blaming coronavirus for not thinking things through cooly and logically.