Business Account Savings and accumulated money

[NorthWestPerm2Contr]

The 3% sounds good, especially on a balance of 30k which I am not too far off. That would equate to about £75/month. Every little helps. However do I have to switch my main account to Santander or can I keep my current bank and just use the reserve?

Also can I have a link please? can't seem to find it

[JamJarST]

The 3% sounds good, especially on a balance of 30k which I am not too far off. That would equate to about £75/month. Every little helps. However do I have to switch my main account to Santander or can I keep my current bank and just use the reserve?

Sorry, no idea whether you need to switch, I would suggest giving them a call.

[JamJarST]

Also can I have a link please? can't seem to find it

Looks like it is 2% and not 3:
Business Reward Saver: Santander Business Banking

[Mr.Whippy]

The 3% sounds good, especially on a balance of 30k which I am not too far off. That would equate to about £75/month. Every little helps. However do I have to switch my main account to Santander or can I keep my current bank and just use the reserve?

I have the Santander Business Reward Saver account and you don't need to switch your main business current account to them.

[NorthWestPerm2Contr]

I have the Santander Business Reward Saver account and you don't need to switch your main business current account to them.

is it worth it from your experience?

[Mr.Whippy]

I have a sizeable chunk of retained cash in there which I've no need/plans to extract just yet... but wanted to be able to have instant access to it just in case. 2% will do all the time I'm not using the money, so yes it's worthwhile for me. Account was straightforward enough to open.

[oversteer]

Spotted this on a search
Saffron Building Society | Business e-saver account

1.5% on £1000+ with instant access and they do 1yr bonds at 2.25%+

Only downside is, I've never heard of them!

[Craig@Clarity]

Bear in mind lovely people that if you're in the flat rate VAT scheme and the interest is interpret as not arisen "in the course or furtherance of any business carried on by the company in question", it should be included in the flat rate VAT calculation a la Thexton Training Limited v HMRC (2010).

If you're transferring and holding money in a deposit/savings account which is money set aside for company taxes, this is exempt supply in the context of VAT and therefore can be ignored from the VAT calc.

[Mr.Whippy]

Bear in mind lovely people that if you're in the flat rate VAT scheme and the interest is interpret as not arisen "in the course or furtherance of any business carried on by the company in question", it should be included in the flat rate VAT calculation a la Thexton Training Limited v HMRC (2010).

If you're transferring and holding money in a deposit/savings account which is money set aside for company taxes, this is exempt supply in the context of VAT and therefore can be ignored from the VAT calc.

What if the money is both to cover company taxes and a rainy day fund?

[Craig@Clarity]

What if the money is both to cover company taxes and a rainy day fund?

If it is for company taxes that is fine even if you're over estimating the amount to put aside because you're very cautious. If you're minimising the risk of the bank losing your entire warchest and you're simply spreading the capital around so that it is covered by the FSCS that should be fine too. It comes down to whether you can argue that you didn't purposely go about trying to maximise your income by looking for the best interest i.e. investing your capital to make it go further. If you're looking for an account to put your company taxes in and the reward for using a particular bank is one which pays higher interest than other, this keeps the interest received as exempt supplies.