Reply to: Business Account Savings and accumulated money

[Mr.Whippy]

So in that case my previous comment was pretty much spot on - i.e. the above building society keeps you at a good rate and you don't have to have a huge sum in there nor do you have to watch withdrawals etc.

I plan on keeping my in there untouched until I need it at which point I'll take the whole lot out and put what I don't need into something else with a decent rate..... Or moving it after the 1 year bonus ends... whichever comes first.

[NorthWestPerm2Contr]

I phoned them. The rate goes down proportionally after each withdrawal (and as stated above down to 0.1% for the month of withdrawal) such that after 12 withdrawals you will be down to 0.1%. e.g. you start on 2% go down to 1.84% after 1st withdrawal (after the 0.1% month) then down to around 1.6% after second withdrawal etc.. etc.. You really need to keep the money in there to get a decent rate.

So in that case my previous comment was pretty much spot on - i.e. the above building society keeps you at a good rate and you don't have to have a huge sum in there nor do you have to watch withdrawals etc.

[Lewis]

The Santander Reward Saver has quite a few caveats, including:

• A bonus rate of 1% for the first 12 months, i.e. for the 2nd years the rate will be 1% instead of 2%.
• A slightly lower rate of 1.84% for the year if you make only 1 withdrawal in the first 12 months.
• A rate of just 0.1% for any month in which you withdraw money.

Still better than Barclays though!

I phoned them. The rate goes down proportionally after each withdrawal (and as stated above down to 0.1% for the month of withdrawal) such that after 12 withdrawals you will be down to 0.1%. e.g. you start on 2% go down to 1.84% after 1st withdrawal (after the 0.1% month) then down to around 1.6% after second withdrawal etc.. etc.. You really need to keep the money in there to get a decent rate.

[NorthWestPerm2Contr]

The Santander Reward Saver has quite a few caveats, including:

• A bonus rate of 1% for the first 12 months, i.e. for the 2nd years the rate will be 1% instead of 2%.
• A slightly lower rate of 1.84% for the year if you make only 1 withdrawal in the first 12 months.
• A rate of just 0.1% for any month in which you withdraw money.

Still better than Barclays though!

The best one from the list for me personally is Safron. Although 1.5% it has none of this notice BS and reduced interest rates for withdrawing etc.

[ChimpMaster]

The Santander Reward Saver has quite a few caveats, including:

• A bonus rate of 1% for the first 12 months, i.e. for the 2nd years the rate will be 1% instead of 2%.
• A slightly lower rate of 1.84% for the year if you make only 1 withdrawal in the first 12 months.
• A rate of just 0.1% for any month in which you withdraw money.

Still better than Barclays though!

[NorthWestPerm2Contr]

I'm looking at the SecureTrust 120 notice account. 3% is worth it for me. Does anyone have any experience with them?

Yes I definitely agree with you there. Especially when they are saying only £1000 required. means I can immediately start making money on 20k+. I need some reviews and to be satisfied that they aint gonna take my money before I can sign up...

[Lewis]

Find & Compare the best Business Deposit Savings Accounts | Business Notice Accounts

I'm looking at the SecureTrust 120 notice account. 3% is worth it for me. Does anyone have any experience with them?

[THEPUMA]

Find & Compare the best Business Deposit Savings Accounts | Business Notice Accounts

[Craig@Clarity]

What if the money is both to cover company taxes and a rainy day fund?

If it is for company taxes that is fine even if you're over estimating the amount to put aside because you're very cautious. If you're minimising the risk of the bank losing your entire warchest and you're simply spreading the capital around so that it is covered by the FSCS that should be fine too. It comes down to whether you can argue that you didn't purposely go about trying to maximise your income by looking for the best interest i.e. investing your capital to make it go further. If you're looking for an account to put your company taxes in and the reward for using a particular bank is one which pays higher interest than other, this keeps the interest received as exempt supplies.

[Mr.Whippy]

Bear in mind lovely people that if you're in the flat rate VAT scheme and the interest is interpret as not arisen "in the course or furtherance of any business carried on by the company in question", it should be included in the flat rate VAT calculation a la Thexton Training Limited v HMRC (2010).

If you're transferring and holding money in a deposit/savings account which is money set aside for company taxes, this is exempt supply in the context of VAT and therefore can be ignored from the VAT calc.

What if the money is both to cover company taxes and a rainy day fund?

[Craig@Clarity]

Bear in mind lovely people that if you're in the flat rate VAT scheme and the interest is interpret as not arisen "in the course or furtherance of any business carried on by the company in question", it should be included in the flat rate VAT calculation a la Thexton Training Limited v HMRC (2010).

If you're transferring and holding money in a deposit/savings account which is money set aside for company taxes, this is exempt supply in the context of VAT and therefore can be ignored from the VAT calc.

[oversteer]

Spotted this on a search
Saffron Building Society | Business e-saver account

1.5% on £1000+ with instant access and they do 1yr bonds at 2.25%+

Only downside is, I've never heard of them!

[Mr.Whippy]

I have a sizeable chunk of retained cash in there which I've no need/plans to extract just yet... but wanted to be able to have instant access to it just in case. 2% will do all the time I'm not using the money, so yes it's worthwhile for me. Account was straightforward enough to open.

[NorthWestPerm2Contr]

I have the Santander Business Reward Saver account and you don't need to switch your main business current account to them.

is it worth it from your experience?

[Mr.Whippy]

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?

I have the Santander Business Reward Saver account and you don't need to switch your main business current account to them.