Anyone using State Bank of India for savings? (1.5%)

[PerfectStorm]

State Bank of India offer a 1.5% easy access business savings account.

With the tax-free portion of dividends being reduced to 5k + salary in April, it makes sense to save your money in the business as efficiently as possible. The previous method of pulling out your war chest (under the higher limit) to invest elsewhere is no longer an option with the 7% tax.

Anyone had experience with this bank? They seem to offer the best easy access returns but what is their website like, how long do transfers take, what was it like for you to set the account up?

[northernladuk]

Won't you get more being smart using an Aldermore fixed for corp tax another longer Aldermore fixed for anything above the war chest and an instant access at 1.25% for the rest?

[jamesbrown]

Won't you get more being smart using an Aldermore fixed for corp tax another longer Aldermore fixed for anything above the war chest and an instant access at 1.25% for the rest?

It's 1.1% for the easy access account but, yes.

I wouldn't touch State Bank of India TBH. Crappy website (as though someone designed it from their bedroom) and the application process reminds me of "I'll just need two references"...they want articles of association, for example. It has a UK banking license, so FSCS protected. No idea what the customer service is like, but I suspect it's crap if the website is anything to go by. My 2p anyway

[jamesbrown]

BTW, given that ER (via MvL) is no longer really an option until you plan to retire (and will probably be gone by then), and the consequences of being flagged as a non-trading or a close investment holding company aren't what they used to be (i.e. main and small business CT rates are the same now), active investments have become more attractive IMO, particularly when you consider the additional tax required to get the money out and benefit from the CGT annual allowance on personal investments.

[northernladuk]

It's 1.1% for the easy access account but, yes.

Ah yes you are right sorry. Was looking at the wrong product.

[TheFaQQer]

You have to either open in branch, or send certified copies of lots of papers to open the account - I looked recently because I need to spread money between different banking institutions.

If you haven't got money in Aldermore, then that seems to be the best bet - particularly if you want a longer-term fix but not too long. Alternatively, CC Bank do a good 95 day account - their 30 day account used to be much better than it is now, so it may be worth checking regularly to see if it's got better.

Edit - CC Bank no longer do a 95 day account. It's 1.3% on 45 day terms, 2% on two year terms, 2.75 on five year terms.

[LondonManc]

Just makes property seem more appealing.

Take the hit on higher rate tax getting it out of the corporate coffers, invest in property and have a long-term appreciating asset on your hands

[Fred Bloggs]

What could possibly go wrong? Remember Icesave and quite a few others? Iceland defaulted on their overseas debts

[mudskipper]

What could possibly go wrong? Remember Icesave and quite a few others? Iceland defaulted on their overseas debts

Bank of India is covered by FSCS