Abbey cuts business account interest rates

[chicane]

Just noticed that I'm getting a fraction of the interest on my Abbey business account that I was last month. Further inspection reveals that Abbey have cut the interest rate to 0.10% for balances of less than 50 grand.

The rate was previously 2.0% for balances between 25k and 100k which gave a worthwhile amount of interest each month - at least enough to cover some outgoings.

It's a bit of a shame - it makes the Abbey business account significantly less competitive in my opinion. Does anybody know if Cater Allen (also part of the Santander Group) are following suit with their interest rates?

[max]

Just noticed that I'm getting a fraction of the interest on my Abbey business account that I was last month. Further inspection reveals that Abbey have cut the interest rate to 0.10% for balances of less than 50 grand.

The rate was previously 2.0% for balances between 25k and 100k which gave a worthwhile amount of interest each month - at least enough to cover some outgoings.

It's a bit of a shame - it makes the Abbey business account significantly less competitive in my opinion. Does anybody know if Cater Allen (also part of the Santander Group) are following suit with their interest rates?

Have you considered using their reserve account? Currenly 3.51%, and perhaps even their Time deposit for when you hit the 50k, currently paying 5.5%+

http://www.anbusiness.com/services/c...html#ancillary

[Pondlife]

Have you considered using their reserve account? Currenly 3.51%, and perhaps even their Time deposit for when you hit the 50k, currently paying 5.5%+

http://www.anbusiness.com/services/c...html#ancillary

WHS.

Keep the minimum you need in the current and the rest in the reserve. Transfer across as and when required and the money is instantly there.

[chicane]

Have you considered using their reserve account? Currenly 3.51%, and perhaps even their Time deposit for when you hit the 50k, currently paying 5.5%+

http://www.anbusiness.com/services/c...html#ancillary

Yep - just waiting for the accountant to call back so that I can find out if doing so is still worthwhile given the potential of extra book-keeping effort and accountancy charges.

I suspect what you suggest is what Abbey are angling at by reducing the interest on the business current account to such a pitiful figure.

[Lewis]

FYI

I get 5.38% APR on balances above £1 with Bank Of Scotland.

[max]

Yep - just waiting for the accountant to call back so that I can find out if doing so is still worthwhile given the potential of extra book-keeping effort and accountancy charges.

I suspect what you suggest is what Abbey are angling at by reducing the interest on the business current account to such a pitiful figure.

Keeping money in a reserve is standard practise. If your accountant wants more money it'd be time to get a new accountant.

[max]

FYI

I get 5.38% APR on balances above £1 with Bank Of Scotland.

which RBS account is that?

[chicane]

which RBS account is that?

"Bank of Scotland" is a different organisation to "Royal Bank of Scotland" as far as I know.

http://www.totalbusinessaccount.co.uk/?intsrc=promo1B

[max]

"Bank of Scotland" is a different organisation to "Royal Bank of Scotland" as far as I know.

http://www.totalbusinessaccount.co.uk/?intsrc=promo1B

my mistake..missed that one. Doh.. normally referred to as HBOS.

[blacjac]

Yep - just waiting for the accountant to call back so that I can find out if doing so is still worthwhile given the potential of extra book-keeping effort and accountancy charges.

I suspect what you suggest is what Abbey are angling at by reducing the interest on the business current account to such a pitiful figure.

I fail to see what extra book keeping effort or charges there would be.

I constantly swap company funds between current and reserve accounts.
My accountant has no idea that I do this, nor is it any of his business. All he cares about i2 the total amount of money I have got and the incomings / outgoings.

Unless your accountant control.s your bank accounts. Which sounds more like and MSC than an accountant to me......