bank account

[Sausage Surprise]

Another vote for Cater Allen from me - online banking is limited but serves it's purpose no problem. The telephone service is very good though.

[Gonzo]

It's the zero interest on balances of <£5000 that put me off Cater Allen.

I wouldn't have let that put me off. The only time that MyCo's account had less than £5000 in it was before the first ever invoice was paid.

Remember that you will have VAT money in the account for up to 3 months and CT money in the account for up to 21 months before you have to pay either of them. If you find that you have spent those and taken the balance down to zero then you are going to be in trouble.

[Lewis]

I wouldn't have let that put me off. The only time that MyCo's account had less than £5000 in it was before the first ever invoice was paid.

Remember that you will have VAT money in the account for up to 3 months and CT money in the account for up to 21 months before you have to pay either of them. If you find that you have spent those and taken the balance down to zero then you are going to be in trouble.

Yep absolutely. If I was using Cater Allen I would move VAT, CT and monies that will go as dividends into an Asset30 account to get the better interest. So theoretically the Corporate Account could go below 5K quite regularly. Leaving the VAT and CT in the Corporate account with its terribly low rates would not be the best option. Althought I am now thinking a combination of BOS Business Account and CA Asset30 account is best :-)

[Gonzo]

Yep absolutely. If I was using Cater Allen I would move VAT, CT and monies that will go as dividends into an Asset30 account to get the better interest. So theoretically the Corporate Account could go below 5K quite regularly. Leaving the VAT and CT in the Corporate account with its terribly low rates would not be the best option. Althought I am now thinking a combination of BOS Business Account and CA Asset30 account is best :-)

They gave MyCo a Reserve Account. Free if there are less than 20 transactions a month (I think) which has never been a problem. The difference between the rates on that one and the Asset30 account make it not really worth running two accounts.

[Lewis]

They gave MyCo a Reserve Account. Free if there are less than 20 transactions a month (I think) which has never been a problem. The difference between the rates on that one and the Asset30 account make it not really worth running two accounts.

You could gain:

1.19% AER on balances between 5k and 10K
0.63% AER on balances between 10K and 25K

If you can open an Asset30 for free why not. I used to be with them when they were Flemings, it was easy to phone up and move from one account to the other. You just need to give 30 days notice before taking money out but like you say you always know when you are going to need that CT and VAT money.

[MickeyP]

They gave MyCo a Reserve Account. Free if there are less than 20 transactions a month (I think) which has never been a problem. The difference between the rates on that one and the Asset30 account make it not really worth running two accounts.

I agree with Gonzo. Why bother with the asset 30 when, as it's name suggests, it's a 30 day notice account? The reserve account has a plenty healthy enough interest rate.