Two bank accounts for Ltd company. Any good?

[aaru]

Is it any good having two bank accounts for limited company?

I sent an application to one of the high street bank to open business-banking account. Bank opened two accounts; one current account and another business bonus reserve account! This second is not used from last one year.

My accountant suggested that it might cause confusion with no real advantage.
I am thinking of closing the second account.

I guess there might be a reason why bank opened that second account.

Any suggestions/ views are welcome.

[Alan @ BroomeAffinity]

Business Bonus Reserve account pays interest. Your bank will sweep the balance from the current a/c to the reserve a/c to max your interest. Is it your accountant who is going to be confused or does he think you'll be confused? How complicated can it be looking after 2 accounts?

[Danbro]

Danbro Accounting Limited

Hi,

Your first account ( Current Account ) should be used for your day to day transactions, your current account probably wont pay any interest and if so will be low.

Your business reserve account should be used for your surplus funds in your company like future corporation tax, excess profits not distributed etc, this will pay interest and therefore beneficial

I would always suggest the above route to maximise your return from your company, more money in your pocket

Thanks

Neil

[aaru]

Thanks Just1morethen.
That was helpful. I guess I will keep this bonus account.

[r0bly0ns]

We have 2 business accounts, a current account and a money manager account.

Whenever we get an invoice paid, we put the VAT element in the savings account and leave it there earning interest until the VAT return is due.

[Sockpuppet]

I just stick all my dough in the reserve account and leave only a few £k in the current account to deal with bill / my wages.

[Ardesco]

Useful place to stick 33% of your incomings to pay for VAT and CT IMHO

HTH

[aaru]

Useful place to stick 33% of your incomings to pay for VAT and CT IMHO

HTH

33%? my thought that 25% should be fine...

[Ruprect]

There is something to be said for having >1 account in >1 institution too - spreading the eggs among many baskets, esp if you are over the 36K (or whatever the threshold is that the govt protects), and esp if you have the money with a bank that has a lot of mortgage debt in either the british, spanish or US markets.

Just my 2c.

[MonkeyWorld]

Any opinions on good reserve/business saving accounts to look at ? With Cater Allen for current acc, but looking for something with even better rates for surplus funds.