I have been fortunate to built up a substantial balance in my business account with HSBC which puts me multiples over the FSCS protection limits. While HSBC should be safe, it seems prudent to spread funds into at least one other bank to reduce my exposure to any banking issues generally (failures, exit gates, cyber attacks etc) while perhaps earning some interest.
Would anyone here happen to have any recommendations on any banks with business savings accounts?
(I started the process with Virgin Money but I recall their IT systems are antiquated. A good IT system is desirable to move funds around easily as the balance will fluctuate).
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Business Savings Account Recommendations?
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- Lemon Half
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Re: Business Savings Account Recommendations?
do protection limits (eg 85K) apply to business accounts ?
Re: Business Savings Account Recommendations?
didds wrote:do protection limits (eg 85K) apply to business accounts ?
Yes according to the FSCS:
"I have a company which is a partnership/limited company. How is my money protected?
If your business is a separate legal entity, e.g., a limited company or LLP, it is protected up to £85,000. This is in addition to the £85,000 protection across all individual accounts you hold within the bank/banking group. In this situation, the business is the protected entity, not each individual."
https://www.fscs.org.uk/industry-resour ... ion-banks/
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- Lemon Half
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Re: Business Savings Account Recommendations?
I've used Aldermore for my Ltd co. instant access savings for many years, currently paying 2.3%. Not great but much better than my business current account still at 0.1%.
For cash I'm not likely to need instantly and to get a higher return, I tend to use the Loanpad premium p2p account (60 day notice) currently at 5.4%, but note this is not a savings account and not covered by the FSCS in event of problems, it's p2p lending. To me the risk seems acceptable and lower than many p2p accounts I've seen, and I've used it for around 4 years and they've always paid the expected interest rate without fail with no losses.
For cash I'm not likely to need instantly and to get a higher return, I tend to use the Loanpad premium p2p account (60 day notice) currently at 5.4%, but note this is not a savings account and not covered by the FSCS in event of problems, it's p2p lending. To me the risk seems acceptable and lower than many p2p accounts I've seen, and I've used it for around 4 years and they've always paid the expected interest rate without fail with no losses.
Re: Business Savings Account Recommendations?
@Tubaman - belated thanks for that excellent tip (which I only just noticed). Much appreciated!
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- Lemon Slice
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Re: Business Savings Account Recommendations?
TAllen wrote:I have been fortunate to built up a substantial balance in my business account with HSBC which puts me multiples over the FSCS protection limits. While HSBC should be safe, it seems prudent to spread funds into at least one other bank to reduce my exposure to any banking issues generally (failures, exit gates, cyber attacks etc) while perhaps earning some interest.
I'd suggest you may be increasing risk by considering going elsewhere. Other matters you would need to consider the likelyhood contrasted with the inconvenience and time expense. Where interest is concerned have engaged HSBC Money Market?
Re: Business Savings Account Recommendations?
BobGe wrote:TAllen wrote:I have been fortunate to built up a substantial balance in my business account with HSBC which puts me multiples over the FSCS protection limits. While HSBC should be safe, it seems prudent to spread funds into at least one other bank to reduce my exposure to any banking issues generally (failures, exit gates, cyber attacks etc) while perhaps earning some interest.
I'd suggest you may be increasing risk by considering going elsewhere. Other matters you would need to consider the likelyhood contrasted with the inconvenience and time expense. Where interest is concerned have engaged HSBC Money Market?
(Belated response, only just spotted this)
Good tip thanks @BobGe. I think I did look at those and the minimum appeared to be £50k (although their page appears contradictory). That should do ok but the option with lower balances. Will follow-up.
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