Cash in business accounts

[sfp]

Is cash in business/company UK bank accounts protected or guaranteed safe to any extent, or is it open to cyprus-style grab or at the mercy of bank failure?

[bigee]

first 85k

[sfp]

bigee said:

first 85k

So that definitely extends to business accounts too?

[Steffan]

sfp said:

bigee said:

first 85k

So that definitely extends to business accounts too?

I suspect commercial accounts and incorporated accounts are excludes from the FSCS schemes.

[bigee]

.

"I run a small business, what about me?

The FSCS deposit protection scheme covers small businesses. To qualify they have to meet at least two of the following conditions. They must:

have annual turnover of less than £6.5m.
have a balance sheet of less than £3.26m.
have fewer than 50 employees"

The above is copied/pasted from a report(BBC) i read a couple of years ago......check with your own bank,but seems pretty clear to me...

[ellroy]

bigee said:

.

"I run a small business, what about me?

The FSCS deposit protection scheme covers small businesses. To qualify they have to meet at least two of the following conditions. They must:

have annual turnover of less than £6.5m.
have a balance sheet of less than £3.26m.
have fewer than 50 employees"

The above is copied/pasted from a report(BBC) i read a couple of years ago......check with your own bank,but seems pretty clear to me...

Spot on.

£85k does NOT apply to a business unless it satisfies the above criteria.

[WhereamI]

ellroy said:

Spot on.

£85k does NOT apply to a business unless it satisfies the above criteria.

Which, of course, the overwhelming majority of businesses do.

[RYH64E]

Am I right in thinking that the guarantee is per bank rather than per account? I've got 4 Barclays business accounts (for 2 companies), a personal Barclays account, and a couple of personal accounts with Nat West (one joint with my wife, who also banks with Lloyds).

Would I be better opening some accounts with other banks? I seem to have accrued too many bank accounts already!

[Steffan]

RYH64E said:

Am I right in thinking that the guarantee is per bank rather than per account? I've got 4 Barclays business accounts (for 2 companies), a personal Barclays account, and a couple of personal accounts with Nat West (one joint with my wife, who also banks with Lloyds).

Would I be better opening some accounts with other banks? I seem to have accrued too many bank accounts already!

The guarantee only relates to one account per individual bank I believe.

[ninja-lewis]

Steffan said:

RYH64E said:

Am I right in thinking that the guarantee is per bank rather than per account? I've got 4 Barclays business accounts (for 2 companies), a personal Barclays account, and a couple of personal accounts with Nat West (one joint with my wife, who also banks with Lloyds).

Would I be better opening some accounts with other banks? I seem to have accrued too many bank accounts already!

The guarantee only relates to one account per individual bank I believe.

Does it not cover £85,000 per banking licence, regardless of how many accounts that consists of - thus 4 Barclays accounts of £20,000 (total £80k) would be covered. With the banking licence bit being rather important as several high street banking brands share the same banking licence.

http://www.thisismoney.co.uk/money/saving/article-...

[Steffan]

ninja-lewis said:

Steffan said:

RYH64E said:

Am I right in thinking that the guarantee is per bank rather than per account? I've got 4 Barclays business accounts (for 2 companies), a personal Barclays account, and a couple of personal accounts with Nat West (one joint with my wife, who also banks with Lloyds).

Would I be better opening some accounts with other banks? I seem to have accrued too many bank accounts already!

The guarantee only relates to one account per individual bank I believe.

Does it not cover £85,000 per banking licence, regardless of how many accounts that consists of - thus 4 Barclays accounts of £20,000 (total £80k) would be covered. With the banking licence bit being rather important as several high street banking brands share the same banking licence.

http://www.thisismoney.co.uk/money/saving/article-...

I think this guarantee does cover appropriate bank accounts in an individuals name up to a maximum of £85,000 subject to them not being commercial accounts which require additional tests already mentioned by previous posters on here.

Thus if you had £35,000 in an authorised bank current account, £25,000 in a savings account and 25,000 in another personal account with the same bank these would be covered.

The definitive answer would be available from the Bank of England. You will probably have seen the Bank of England promising in recent statements that all UK residents with bank accounts with the Bank of Cyprus would be protected to £85,000 in the event of collapse by the BofE.

In reality I think the big danger is no longer that the banks will fail but that economic failure and QE will devalue currency and fuel inflation worldwide. The real danger now is that our currency will fall in value rendering all savings less valuable. The only protection against this is to hold legitimate offshore currency accounts or invest in other commodities which my fare better. Or may not.

You will need specific advice from an authorised Financial Services representative who specialises in such transactions but that may be no guarantee that your money will be secured. Investments can fall in value as well as rise.

[ellroy]

It is per banking license as stated, i.e. £85k could be over several accounts, but for each legal entity.

Therefore, husband gets one £85k, wife another etc.

So if there were separate businesses each satisfying the above criteria they should each also be covered to £85k.

[tescorank]

Surely client accounts must be 100% covered?

[Steffan]

tescorank said:

Surely client accounts must be 100% covered?

Depends on what you meany bu clients of the bank. Bank Account holders can only claim £85,000 each individually. If they have more invested it is at their risk. Client accounts with Solicitors is another matter. The Solicitors Complaints Bureau might pay out but I personally doubt that.

Essentially you are on your own above the £85,000 figure. T%he maximum government guarantee is £85,000.

[Octoposse]

sfp said:

Is cash in business/company UK bank accounts protected or guaranteed safe to any extent, or is it open to cyprus-style grab or at the mercy of bank failure?

Cyprus-style grab unlikely - if the UK needed to come up with x billion by next Monday it could just print the stuff (thus devaluing your holding anyway!). So the UK can always honour its £85k/€100k guarantee which Cyprus could not.