Business account actually paying interest?

[nosuchuser]

I've a limited company. Been with my current business bank for about 4 years. Interest has gradually petered out and I'm looking to move to another company who might actually pay me interest on my ~50k balance without daft charges.

Any suggestions please?

[offshorematt2]

Bump back to the top... I'd be very interested to hear this too!

[ringram]

Prepay your corporate tax to HMRC they will pay you base rate on it.

[nosuchuser]

Here's a couple of options:
Current business bank have a 30 day thing paying 1.35% - better than a poke in the eye

RBS business account can be linked to personal mortgage reducing value of loan - but not sure for how long and a complete pain in the arse changing all that st.

And indeed prepaying corp. Might do that this year

[Ribz]

Wow,

Going to look into the RBS linked business account/personal mortgage a little further. Thanks for mentioning it!!!

[CDP]

nosuchuser said:

RBS business account can be linked to personal mortgage reducing value of loan - but not sure for how long and a complete pain in the arse changing all that st.

How does that work from a tax point of view? It's got to count as some sort of perk.

[sbirt]

You could always open a business savings account - both ING and Santander have no-notice accounts paying 2% which is better than the 0% most current accounts pay. You can get more for advance-notice or fixed term.

[CDP]

sbirt said:

You could always open a business savings account - both ING and Santander have no-notice accounts paying 2% which is better than the 0% most current accounts pay. You can get more for advance-notice or fixed term.

ING are Dutch so not an enormous worry but Santander are Spanish. I know the government covers the first 80K of deposits for individuals but does that cover companies too? I'm thinking of Icesave...

[UpTheIron]

CDP said:

ING are Dutch so not an enormous worry but Santander are Spanish. I know the government covers the first 80K of deposits for individuals but does that cover companies too? I'm thinking of Icesave...

Yes, providing it is a small company... ING is covered by the Dutch Government to €100k, Santander UK by UK Government to £85k.

[CDP]

UpTheIron said:

CDP said:

ING are Dutch so not an enormous worry but Santander are Spanish. I know the government covers the first 80K of deposits for individuals but does that cover companies too? I'm thinking of Icesave...

Yes, providing it is a small company... ING is covered by the Dutch Government to €100k, Santander UK by UK Government to £85k.

Thanks, I'll look into them.. The Santander account only looks like 1.5% for instant access but that's still a lot better than the zero rate payed by HSBC

[nosuchuser]

CDP said:

UpTheIron said:

CDP said:

ING are Dutch so not an enormous worry but Santander are Spanish. I know the government covers the first 80K of deposits for individuals but does that cover companies too? I'm thinking of Icesave...

Yes, providing it is a small company... ING is covered by the Dutch Government to €100k, Santander UK by UK Government to £85k.

Thanks, I'll look into them.. The Santander account only looks like 1.5% for instant access but that's still a lot better than the zero rate payed by HSBC

Interesting. My business account is with Cater Allen - part of Santander. CA's Asset 30 is 1.35 with 30 day term, interest paid monthly, will check out the ING offering

Cheers

Edit - ING is 2% for a year only but interest paid monthly.

http://www.fairinvestment.co.uk/business_savings_a...

Edited by nosuchuser on Wednesday 5th September 11:46

[sbirt]

Santander have their "Business Reward Saver" which is 2%, paid monthly. If any withdrawals are made in a month then it only pays 0.1% for that month.

Worth noting that although Cater Allen is part of Santander they have their own banking license, so are covered separately under the FSCS scheme.