Business Account Savings and accumulated money

[NorthWestPerm2Contr]

I know there have been some threads before about business account savings and how crap their rate is. My question is two fold (both related really):

1) Do I have to keep the money set aside for tax + vat + warchest all at the same bank or can I temporarily transfer them over to another bank to get a better interest rate?

2) Has the situation with business account savings improved? Does anybody know of a good deal at some bank where you can get say 0.5% or 1% on 20k +

[Craig@Clarity]

Hi,

I can answer 1 for you:

1.You can have as many company bank accounts as you like and move money between those company bank accounts as you see fit. They should be in the limited company name as to avoid the transfers being treated as director's loan.

[NorthWestPerm2Contr]

Hi,

I can answer 1 for you:

1.You can have as many company bank accounts as you like and move money between those company bank accounts as you see fit. They should be in the limited company name as to avoid the transfers being treated as director's loan.

Top guy

[NorthWestPerm2Contr]

anybody know a decent account?

[northernladuk]

Hi,

I can answer 1 for you:

1.You can have as many company bank accounts as you like and move money between those company bank accounts as you see fit. They should be in the limited company name as to avoid the transfers being treated as director's loan.

Question 2.

Santander have a reserve account alongside the main one which have better rates, both are in the business name and can just move money between the two.

[NorthWestPerm2Contr]

Question 2.

Santander have a reserve account alongside the main one which have better rates, both are in the business name and can just move money between the two.

Do you have to be with Santander in the first place though?

[Greg@CapitalCity]

Smaller

Yes, agree re question 1. Just pay particular attention to the end of Craig's sentence - make sure any accounts you open are in the business name, otherwise the loan effect will cancel out any benefits of putting £20k into a non-business account.

As for banks, our clients tend to find the best rates with the 'smaller' banks like Santander though opening up a business account can take a while! Otherwise ask your existing bank what term deposit deals they have. The only other suggestion I have it pay your Corporation Tax as early as possible each year - the HMRC pay 0.5% interest on funds recd before the due date. Its not a lot, but its always good to get a little bit of money back from the tax office.

[NorthWestPerm2Contr]

surely there must be some bank out there paying more than 0.5% interest for such significant savings?

[JamJarST]

I am with Santander, I have a basic business account with them. Took a couple of weeks to open that account, but once that was up and running it took 15 minutes on the phone to open the company savings account. This has no minmum balance and earns .5% if I remember correctly. The money is available instantly. They do a higher rate account of 3% I think, as well but it requires a minimum balance of £30k.

[NorthWestPerm2Contr]

I am with Santander, I have a basic business account with them. Took a couple of weeks to open that account, but once that was up and running it took 15 minutes on the phone to open the company savings account. This has no minmum balance and earns .5% if I remember correctly. The money is available instantly. They do a higher rate account of 3% I think, as well but it requires a minimum balance of £30k.

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?