Business Deposit Accounts?

[jamesbrown]

I was thinking about this on the way in to work this morning.

Let's say the average day rate for a contractor is £400+VAT. And he works 220 days a year.

That's approx £105k going into his account throughout the year.

£18k (very roughly) of that is being saved short term to pay his VAT

£18k (very roughly) being saved for a year to pay CT.

That leaves around £70k left.

He pays himself salary + divs of around £40-50k pa.

£20-30k in the warchest to be saved long term - every year.

I know those figures are very VERY rough and every one of us would split it slightly differently, but generally speaking I'm sure that's not too far off the mark as an average.

Now multiply that by the number of contractors in the UK.

Why isn't there just one bank that's saying "You know what, that's a shed load of money that I could attract if I just offered something decent in return".

It depends what you mean by "decent." It's all relative, afterall. What matters to the banks is the differential between the rate at which they can lend (for mortgages etc.) and the rate at which they can borrow (from savers, from each other, from central bank schemes). Unfortunately for savers, money is very cheap at the moment. They can't earn much from borrowers, there's plenty of liquidity in the system, so they don't pay much to savers.

[JRCT]

I was thinking about this on the way in to work this morning.

Let's say the average day rate for a contractor is £400+VAT. And he works 220 days a year.

That's approx £105k going into his account throughout the year.

£18k (very roughly) of that is being saved short term to pay his VAT

£18k (very roughly) being saved for a year to pay CT.

That leaves around £70k left.

He pays himself salary + divs of around £40-50k pa.

£20-30k in the warchest to be saved long term - every year.

I know those figures are very VERY rough and every one of us would split it slightly differently, but generally speaking I'm sure that's not too far off the mark as an average.

Now multiply that by the number of contractors in the UK.

Why isn't there just one bank that's saying "You know what, that's a shed load of money that I could attract if I just offered something decent in return".

[TheFaQQer]

No, Aldermore is about the best you can expect really, at least for easy access (actually, probably for deposit too, as they have that flexible interface where you can choose your period).

TheCyclingProgrammer mentioned this one in a couple of threads, which looks pretty good too (for a notice account):

30 Day Notice Account - CC Bank I Cambridge & Counties Bank

Just bear in mind the FSCS limits, which apply per banking license (not per brand), so you only want 85k distributed across any one banking license, ideally.

That's where I have my company money - Aldermore instant access, Aldermore longer term deposit account for the corporation tax money, CaCB for 30 day account.

Beats the 0.1% from Santander by some margin

[jamesbrown]

No, Aldermore is about the best you can expect really, at least for easy access (actually, probably for deposit too, as they have that flexible interface where you can choose your period).

TheCyclingProgrammer mentioned this one in a couple of threads, which looks pretty good too (for a notice account):

30 Day Notice Account - CC Bank I Cambridge & Counties Bank

Just bear in mind the FSCS limits, which apply per banking license (not per brand), so you only want 85k distributed across any one banking license, ideally.

[swebb]

I'm already using Santander and Aldermore for deposit account for my business, both pay some interest but not much. Are there any other banks/BB's paying some interest on company accounts ? I had a quick look around and nobody really stood out.

Cheers