Can i have multiple business accounts in separate banks?

[Adecco]

Just wondering is there any reason why i cannot set up a company account in 2 different banks?

i.e. I have one limited company - i currently have a business bank account with one bank.
I want to set up a second business bank account with a different bank while maintaining the first one.

i.e. i would then have 2 active business bank accounts in different banks for the sigle limited company.

Any reason i don't know of why this is not allowed?

[Craig at Nixon Williams]

This is a perfectly acceptable and normal thing to do, I'd even encourage it if you have more than £85k in the bank (the FSCS limit).

[Jeremiah@RHJAccountants]

No reason to stop you doing this at all and very much the norm especially if you have lots of cash in the bank account above the FSCS limit.

[Forbes Young]

Just wondering is there any reason why i cannot set up a company account in 2 different banks?

i.e. I have one limited company - i currently have a business bank account with one bank.
I want to set up a second business bank account with a different bank while maintaining the first one.

i.e. i would then have 2 active business bank accounts in different banks for the sigle limited company.

Any reason i don't know of why this is not allowed?

This is perfectly acceptable eg have a deposit account paying interest at a more favourable rate than your company would receive at the bank where it has its current account. Similarly if your company wanted to invest in a fixed term bond/investment with another bank.

[northernladuk]

Could I ask why you want to do this just out of interest?

[tractor]

...

I am surprised. I thought business accounts were excluded but...

As an indicative guide only, for the purposes of deposit and investment claims, smaller companies are protected. A smaller company must meet two of the following criteria (as set out in section 247 of the Companies Act 1985 or section 382 of the Companies Act 2006 as applicable):

• Turnover: not more than £6.5 million
• Balance sheet total: not more than £3.26 million
• Total number of employees: not more than 50

For claims made under an insurance contract, small businesses are protected. A small business under the COMP rules is one that has an annual turnover of less than £1m.

It seems they are not