Deposit protection for limited companies

[MaxAndRuby]

My bank have just told me that moving funds into different accounts with different banks is pointless, as the government only guarantee £50k on Limited Companies cash full stop.

Does anyone know whether this is correct?

[215cu]

It's per financial institution.

So moving savings from NatWest to Ulster bank makes no difference, they are both owned and operated by RBS.

However, split £100K between HSBC and Nat West, the whole amount is covered.

Edited by 215cu on Wednesday 8th October 13:10

[SLCZ3]

Actually if you have lets say, 50K in Natwest and 50K in RBS you will get the whole lot as they are both trading as different banks, and are seperately approved/registered.

[Zen.]

The deposit protection scheme was set up primarily for private individuals.

Small businesses get similar protection to savers if the limited company can satisfy at least two of the following criteria:

A turnover of not more than £6.5m
A balance sheet total of not more than £3.26m
A total number of employees of not more than 50.

Partnerships - not the individual partners - could claim up to £50,000.

For a sole trader account, the sole trader could claim up to £50,000 in total, but can only claim for either personal or business accounts with each institution - they cannot claim for both.

Edited by Zen. on Wednesday 8th October 13:47