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Business savings

Hi I have a fair amount of cash in my business bank account. There’s zero interest and no other accounts worth having with the bank. 
Would I be able to take the cash to a seperate new savings account providing it was logged and repaid ti the business including any interest?
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Comments

  • MattMattMattUK
    MattMattMattUK Posts: 10,158 Forumite
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    dannybbb said:
    Hi I have a fair amount of cash in my business bank account. There’s zero interest and no other accounts worth having with the bank. 
    Would I be able to take the cash to a seperate new savings account providing it was logged and repaid ti the business including any interest?
    Is "the business" Ltd or are you self employed?
  • dannybbb
    dannybbb Posts: 101 Forumite
    Part of the Furniture 10 Posts Name Dropper Combo Breaker
    It’s limited..
  • Slinky
    Slinky Posts: 10,683 Forumite
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    Shawbrook are offering 3.15% business savings
    Make £2024 in 2024
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  • dannybbb
    dannybbb Posts: 101 Forumite
    Part of the Furniture 10 Posts Name Dropper Combo Breaker
    Thanks for the replies-im just thinking what’s the difference between transferring it to shawbrook or a ‘personal savings account’ providing it is logged and kept seperate?
  • MattMattMattUK
    MattMattMattUK Posts: 10,158 Forumite
    1,000 Posts Fourth Anniversary Name Dropper
    dannybbb said:
    Thanks for the replies-im just thinking what’s the difference between transferring it to shawbrook or a ‘personal savings account’ providing it is logged and kept seperate?
    You cannot out a limited company's money in a personal account, you need to make it in some way yours first. Either pay it out to yourself as a dividend, then you are free to do what you want with it, or you could use a director's loan, but that has tax and filing requirements. 
    https://www.gov.uk/directors-loans/you-owe-your-company-money

    Why is the money sat in the business doing nothing, for future investment, slowly drawing it down over time, unsure what to do with it?
  • Grumpy_chap
    Grumpy_chap Posts: 16,990 Forumite
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    If you transfer the funds from the LTD to yourself, then it has to be recorded as a loan to the Director and all the rules applying to that come into play.  Simpler to keep business funds in business accounts.
  • Zanderman
    Zanderman Posts: 4,812 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Photogenic
    dannybbb said:
    Thanks for the replies-im just thinking what’s the difference between transferring it to shawbrook or a ‘personal savings account’ providing it is logged and kept seperate?
    Once it's in a personal account it's your money in legal terms, no matter what logging you've done.

    If the money belongs to a limited company it's not yours, so you can't put it in a personal account. 

    Just use a business savings account!
  • dannybbb
    dannybbb Posts: 101 Forumite
    Part of the Furniture 10 Posts Name Dropper Combo Breaker
    Ok thanks for that. 
    It’s just not needed at the moment but has built up enough for it to be  a concern now interest rates are worth having 
    I guess it’s transferring it to another business bank account

    thabks for your help
  • I've got some in Aldermore EA business savings.
  • Zanderman
    Zanderman Posts: 4,812 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Photogenic
    No shortage of choice - over 80 business savings accounts listed here: 
    https://moneyfactscompare.co.uk/business/business-easy-access-savings/
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