What interest are you getting on business deposits?

[Leftie]

As the title suggests really.

We run an online account where we hold this years profits, carried forward profits, and anything we are holding pending the HMRC wanting it ( VAT and Corporation tax). We get instant internet access and 4.4% gross on balances over £100K.

I wondred how this compared to what others are getting for a comprable level of access?

We have used term deposits in the past on 3, 4 or 6 month tie in and got a similar rate but the capacity to keep topping up the account with 'resting' cash is attractive so that even relativey small amounts are still working rather than sitting in the current acount at 0.8%. I don't want too much hassel in moving money about as transfers between our current and deposit accounts are instataneous at present, whereas when moving it between different banks you seem to lose between 3 and 5 days interest in the 'ether', but would be willing to do that if the benefits were large enough.

I had thought about term deposits for a lump sum and keeping £100K in the exiting depsoit account as a sort of half way measure but term deposits rates don;'t see significantly better than the 4.4% we are getting.

[workshy fop]

Opened one of these on Friday - Alliance and Leicester.

Business Instant Reserve Account

Current interest rates from 12 January 2007

Balance Gross rate* Gross rate* at current base rate Gross AER**
£ 1 - £ 49,999 Base - 0.70% 4.55 4.64
£ 50,000 - £ 5,000,000 Base - 0.25% 5.00 5.11

[Leftie]

workshy fop said:

Opened one of these on Friday - Alliance and Leicester.

Business Instant Reserve Account

Current interest rates from 12 January 2007

Balance Gross rate* Gross rate* at current base rate Gross AER**
£ 1 - £ 49,999 Base - 0.70% 4.55 4.64
£ 50,000 - £ 5,000,000 Base - 0.25% 5.00 5.11

Are there any introductory offers or conditionas to that?

[workshy fop]

Nope. Couldn't see any dodgy small print. A&L seem to be doing the best rates for everything at the moment. Opened a personal one too.
T & c's on the website.

[Leftie]

workshy fop said:

Nope. Couldn't see any dodgy small print. A&L seem to be doing the best rates for everything at the moment. Opened a personal one too.
T & c's on the website.

Thanks, will take a look

[simpo two]

But do they make a charge, either monthly or per transaction?

[Leftie]

Leftie said:

workshy fop said:

Nope. Couldn't see any dodgy small print. A&L seem to be doing the best rates for everything at the moment. Opened a personal one too.
T & c's on the website.

Thanks, will take a look

Went in yesterday.

They ( A&L) are offering 5.11% AER on deposits over 50K and ten withdrawrls a month allowed without charge.( Business Instant Reserve), and a 30 day notice acount paying 5.22%aer (Business 30 day notice account), again over £50k.

Banking is free if no cash is involved and at least £1000 a mopnth comes into the account, otherwise they want £5 a month. They will take £1000 in cash a month without charge. Both maanged by post, intenet or fax. Free travel insurance, but I think that is conditional unpon taking their credit card (could be wrong there) which is £30pa.

Based on what I am currently getting I can make/save £1500 a year on this package.

Special deals for starts ups.

[Leftie]

Leftie said:

Leftie said:

workshy fop said:

Nope. Couldn't see any dodgy small print. A&L seem to be doing the best rates for everything at the moment. Opened a personal one too.
T & c's on the website.

Thanks, will take a look

Went in yesterday.

They ( A&L) are offering 5.11% AER on deposits over 50K and ten withdrawrls a month allowed without charge.( Business Instant Reserve), and a 30 day notice acount paying 5.22%aer (Business 30 day notice account), again over £50k.

Banking is free if no cash is involved and at least £1000 a mopnth comes into the account, otherwise they want £5 a month. They will take £1000 in cash a month without charge. Both maanged by post, intenet or fax. Free travel insurance, but I think that is conditional unpon taking their credit card (could be wrong there) which is £30pa.

Based on what I am currently getting I can make/save £1500 a year on this package.

Special deals for starts ups.

I think I will open up accounts at A&L, but keep my other accounts running as I think it may take 2 or 3 months for clients to change over the BACS details. I will then run down the other bank's accounts as there is only a £3 a month base charge.

I will open new personal accounts at A&L too, as they will give a decent ISA rate but I have a 'allinone' type account which has our mortage on which I will keep open as it allows me to dip into it without having to apply for an extension everytime I need a few bob.