Business bank deposit account

[RYH64E]

Can anyone recommend an interest paying, business deposit account?

I have built up more money than I need in my business current account but don't want to pay it out as dividends, there is about £150k spare. Barclays have offered me an instant access deposit account that pays 0.05%, which is taking the piss imo. Can anyone recommend a business account that pays decent interest?

[Paul Dishman]

Barclays do an e-saver account that will pay 1.26% per month if you don't withdraw funds during that month.

Investec do a business account paying >2%, but you'll have to check to see if the terms suit your situation

Edited by Paul Dishman on Saturday 6th February 12:50

[Mr Overheads]

Yorkshire Bank have an offset mortgage account, where your business account is offset against your mortgage, so you don't need to make drawings but get an effective interest rate equivalent to your mortgage rate. THink the mortgage is about 4.5%

[UpTheIron]

Just done something similar myself, no more than 50k per institution...info is a few weeks out of date, but best deals I found for £150k (i.e. 3 accounts) were:

Investec High Five (3 month notice)
Scottish Widows 7 day notice
Santander Business something-or-other

[cerbfan]

Mr Overheads said:

Yorkshire Bank have an offset mortgage account, where your business account is offset against your mortgage, so you don't need to make drawings but get an effective interest rate equivalent to your mortgage rate. THink the mortgage is about 4.5%

I'm assuming this is possible with a Ltd Company business account though.

[M-J-B]

cerbfan said:

Mr Overheads said:

Yorkshire Bank have an offset mortgage account, where your business account is offset against your mortgage, so you don't need to make drawings but get an effective interest rate equivalent to your mortgage rate. THink the mortgage is about 4.5%

I'm assuming this is possible with a Ltd Company business account though.

You can't use money in this way if it's a Ltd co.

If you are self employed, no problem and I did just this many years ago before I incorporated the company.

[cerbfan]

M-J-B said:

cerbfan said:

Mr Overheads said:

Yorkshire Bank have an offset mortgage account, where your business account is offset against your mortgage, so you don't need to make drawings but get an effective interest rate equivalent to your mortgage rate. THink the mortgage is about 4.5%

I'm assuming this is possible with a Ltd Company business account though.

You can't use money in this way if it's a Ltd co.

If you are self employed, no problem and I did just this many years ago before I incorporated the company.

I was half asleep when I wrote that, I meant impossible.

[Laner]

Our Barclays business manager told us to be greatful for 0.05 that it was paying as they had some accounts where they pay nothing!

We joined the FSB which then gave us immediate access to a range of fixed rate/period deals with Close Brothers.