HSBC: Business High Interest Deposit Bond

**DeludedAussie** · 28 December 2010, 16:40

Originally posted by d000hg View Post

Has anyone used something along these lines? Are they of any use or is it nearly always better to take profits as dividends and invest personally?

Business High Interest Deposit Bond
A fixed bond from between three months and three years for deposits of £5,000 or more, with a guaranteed rate of interest for the life of the bond.
Features and benefits

Your option – invest for three or six months, one, two or three years.
Receive a fixed rate of interest for the full term of the bond.
Choose interest to be paid either monthly or annually. If the bond is for three or six months however, the interest is paid at maturity.
Invest £5,000 minimum – no maximum.
Interest will be tax deducted for amounts under £50,000.
Available to all HSBC Bank current account and savings account holders.
Bonds under £50,000 can be closed early, subject to a fee. If your deposit is for £50,000 or more, early withdrawal is prohibited.

Interest rates (search for "Business High Interest Deposit Bond")

Rates are crap

Best thing you can do with your finances is buy assets -

Nothing to stop you buying a property outright if you have the cash and dont need the mortgage - Focus on low growth high yielding properties - Like flats above shops (These wont appreciate as much as quality prime property if there a boom) but will yield 8%+

**d000hg** · 28 December 2010, 19:56

Property is a very long term investment, for money you really don't expect to need
Is it actually better to buy as a business, or personally?

**thunderlizard** · 28 December 2010, 20:15

Originally posted by d000hg View Post

Has anyone used something along these lines? Are they of any use or is it nearly always better to take profits as dividends and invest personally?

(a) Yes, I've bought exactly one of those in the past, for cash the company wasn't going to need for over 6 months, and in the days before rates went through the floor. Worked as expected.
(b) I wouldn't make the decision along those lines. If it's the business's money, the business invests it. If it's personal money, you invest it personally. Even if you consider your company your personal plaything, I doubt there's enough difference between personal and business rates to justify emptying the balance sheet on those grounds.

**DeludedAussie** · 28 December 2010, 21:02

Originally posted by thunderlizard View Post

(a) Yes, I've bought exactly one of those in the past, for cash the company wasn't going to need for over 6 months, and in the days before rates went through the floor. Worked as expected.
(b) I wouldn't make the decision along those lines. If it's the business's money, the business invests it. If it's personal money, you invest it personally. Even if you consider your company your personal plaything, I doubt there's enough difference between personal and business rates to justify emptying the balance sheet on those grounds.

My point is look at the rate - If you lock in for 3 years you get 1% annualised- Which is a joke

Thats why I maintain buying a high yielding asset

**DeludedAussie** · 28 December 2010, 21:04

Originally posted by d000hg View Post

Property is a very long term investment, for money you really don't expect to need
Is it actually better to buy as a business, or personally?

No right answer - I ve wrestled with this for a while and concluded that

if you have taken basic dividend and
still have a sizeable chunk of money (ie: 100K +) and
Can find a property which wont grow much but will yield good returns

then its worth doing

HSBC: Business High Interest Deposit Bond