Reply to: Business Bank account funds

[contractorZ]

Yes that's fine. You could always discuss your overall financial position with your IFA to see if there is a better solution for you.

Agree - my IFA has been very useful in long term planning and asset allocation

[Forbes Young]

My company ratesetter account is in my company name and linked to the company bank account.

I have a separate ratesetter account for my personal money in my personal name, linked to my personal bank account.

Hope that helps?

Yes that's fine. You could always discuss your overall financial position with your IFA to see if there is a better solution for you.

[contractorZ]

Is the account with Ratesetter in your name or your company name?

My company ratesetter account is in my company name and linked to the company bank account.

I have a separate ratesetter account for my personal money in my personal name, linked to my personal bank account.

Hope that helps?

[Forbes Young]

Hi,

First time post, I don't work for ratesetter. Not trying to recommend them, just in case anyone is interested in them.

I have had some of my company money on their 30 day market with them since 2011 shortly after they started and not had any problems or lost any money.

In the early days the rates on the 30 day market were better. I just looked back and was getting 3.9% at the start as an example, albeit this still isn't huge.

I must admit I agree with you that I've never been totally comfortable putting company money in Ratesetter given the risk/return so have been careful how much company money I put in there.

It's the only P2P lender I have had company money in, although I do have personal money in others

Is the account with Ratesetter in your name or your company name?

[contractorZ]

"Our Provision Fund does not provide a guarantee and money is not covered by FSCS."

You're welcome.

A 0.7% gain with the risk that the money might disappear doesn't seem worth the while as far as investing company funds goes. I guess it's no different from only investing what you can afford to lose, though.

Hi,

First time post, I don't work for ratesetter. Not trying to recommend them, just in case anyone is interested in them.

I have had some of my company money on their 30 day market with them since 2011 shortly after they started and not had any problems or lost any money.

In the early days the rates on the 30 day market were better. I just looked back and was getting 3.9% at the start as an example, albeit this still isn't huge.

I must admit I agree with you that I've never been totally comfortable putting company money in Ratesetter given the risk/return so have been careful how much company money I put in there.

It's the only P2P lender I have had company money in, although I do have personal money in others

[tractor]

...

Prepaying CT used to be good @ around 4% but now it's only .5%

[TheFaQQer]

https://www.ratesetter.com/lend/provisionfund

You're welcome.

Note that this is why I prefer RateSetter over Funding Circle (where I expected a high level of default, but overall had a better rate of return). I believe you can use business funds with Zopa, but I've yet to try it outside a small personal investment (~£500).

"Our Provision Fund does not provide a guarantee and money is not covered by FSCS."

You're welcome.

A 0.7% gain with the risk that the money might disappear doesn't seem worth the while as far as investing company funds goes. I guess it's no different from only investing what you can afford to lose, though.

[northernladuk]

https://www.ratesetter.com/lend/provisionfund

You're welcome.

Note that this is why I prefer RateSetter over Funding Circle (where I expected a high level of default, but overall had a better rate of return). I believe you can use business funds with Zopa, but I've yet to try it outside a small personal investment (~£500).

What's does it work out as after you have been taxed on the profit though?

[DigitalUser]

Not sure I'd risk the company money for .7%

I guess it's better than "my" money, but still.

https://www.ratesetter.com/lend/provisionfund

You're welcome.

Note that this is why I prefer RateSetter over Funding Circle (where I expected a high level of default, but overall had a better rate of return). I believe you can use business funds with Zopa, but I've yet to try it outside a small personal investment (~£500).

[Forbes Young]

Yes, by "pull it off" I mean move it from MyCo to Personal ownership through dividends etc.

Unfortunately that's the issue for Higher Rate Taxpayers - by taking a dividend, awarding a bonus, taking a higher salary etc, you end up paying income tax (and Employers as well as Employees NI when taking it through a payroll).

[SimonMac]

Your company cannot set up ISAs (NISAs nowadays - New ISAs) of course but it can make tax allowable contributions into your pension fund.

Yes, by "pull it off" I mean move it from MyCo to Personal ownership through dividends etc.

[TheFaQQer]

I use RateSetter (30 day notice period) for my funds - currently earning 2.2% interest. I experimented with Funding Circle but releasing funds was a nightmare, as was the level of default and the work my accountant had to do at year end to ensure everything lined up. Worth it if you plan on having the funds locked in for a while (and I did earn a decent return on what I put in) but I prefer the simplicity of RateSetter and the stable return I'm getting.

Not sure I'd risk the company money for .7%

I guess it's better than "my" money, but still.

[DigitalUser]

I use RateSetter (30 day notice period) for my funds - currently earning 2.2% interest. I experimented with Funding Circle but releasing funds was a nightmare, as was the level of default and the work my accountant had to do at year end to ensure everything lined up. Worth it if you plan on having the funds locked in for a while (and I did earn a decent return on what I put in) but I prefer the simplicity of RateSetter and the stable return I'm getting.

[Forbes Young]

I had/have a HSBC savings account but it's a bit pointless. You only start earning anything decent after 6-12 months and the moment you withdraw anything that resets. So you can only use it for serious long-term savings.

Does your bank offer any fixed term bonds or the like? If not your IFA should be able to suggest some company investments perhaps.

[d000hg]

I had/have a HSBC savings account but it's a bit pointless. You only start earning anything decent after 6-12 months and the moment you withdraw anything that resets. So you can only use it for serious long-term savings.