Company Savings Account

[Bones]

My business account is currently filling up with VAT and Corporation tax, gathering dust but not a penny in interest. What is the best way to move it into an interest paying account while keeping it clearly business funds?

[Ticktock]

My business account is currently filling up with VAT and Corporation tax, gathering dust but not a penny in interest. What is the best way to move it into an interest paying account while keeping it clearly business funds?

HSBC Business Accounts have a savings account too. It's certainly not the best interest rate, but better than nothing at all.

[Bones]

HSBC Business Accounts have a savings account too. It's certainly not the best interest rate, but better than nothing at all.

I am very impressed that you knew my business account is with HSBC!

Yes they have a 'high interest' savings account, it pays 0.02%!! so not worth opening.

I was thinking more of the principle of moving the money to a non business account.

[tractor]

..

I am very impressed that you knew my business account is with HSBC!

Yes they have a 'high interest' savings account, it pays 0.02%!! so not worth opening.

I was thinking more of the principle of moving the money to a non business account.

Barclays used to have a decent savings account also. For over 5 years now, it's been worth squat.

[jmo21]

Aldermore have a 1.1% easy access savings account.

[borderreiver]

I was thinking more of the principle of moving the money to a non business account.

Not a good idea. It's the company's money, so it needs to stay in the company or HMRC will see it as you taking a director's loan (or worse ...)

CA has/had a 30-day business savings account with 1.5% (I think). No idea if it's still available.

[ASB]

If you are not risk averse you could draw up a deed of trust demonstrating that you are holding it on trust for the company and then park it in an appropriate account.

deed of trust needs to be right of course.

[mudskipper]

Santander pay a whopping 1% if you have > £5K and don't make withdrawals.

Pay your corp tax early - HMRC give you interest if you do.

[Bones]

Not a good idea. It's the company's money, so it needs to stay in the company or HMRC will see it as you taking a director's loan (or worse ...)

CA has/had a 30-day business savings account with 1.5% (I think). No idea if it's still available.

If you are not risk averse you could draw up a deed of trust demonstrating that you are holding it on trust for the company and then park it in an appropriate account.

deed of trust needs to be right of course.

That was more what I was getting at, I know where I can put the money the issue was staying on the right side of HMRC. I just wondered if there was any legitimate way of moving the money to a more favorable account. If it sits in a bank account why cant it still belong to the company? (e.g. TSB will shortly be opening accounts that pay 5% on balances up to £2000). I will have a look at the rules for directors loans to see if there is any potential there.
Shirley it been thought of before!?

[tractor]

Santander pay a whopping 1% if you have > £5K and don't make withdrawals.

Pay your corp tax early - HMRC give you interest if you do.

This really did used to be worthwhile when the rate was 8%ish