PDA

View Full Version : Business banking if bank goes under



texto
28th September 2008, 18:09
If a bank goes under, I know that FSA/FSCS guarantee 100% of savers money on £35000 provided the bank is regulated by the FSA. Does the same apply to business bank accounts which contain large sums of money? It does not seem adequate to me. OK for a personal savings account but not for a business bank account.

Do you (or can we) hold multiple business bank accounts for your limited company to get around this?

texto

Sockpuppet
28th September 2008, 18:15
If a bank goes under, I know that FSA/FSCS guarantee 100% of savers money on £35000 provided the bank is regulated by the FSA. Does the same apply to business bank accounts which contain large sums of money? It does not seem adequate to me. OK for a personal savings account but not for a business bank account.

Do you (or can we) hold multiple business bank accounts for your limited company to get around this?

texto

Yes, businesses with turnovers below £1mln are covered.

You can hold as many bank accounts as you like.

Old Greg
28th September 2008, 19:06
Related to this - I see that Northern Rock are offering 5.11% for their Business Reserve account (minimum 10k deposit) - government backed. I think OG Ltd will be opening up one of those babies and reducing the sums in Cater Allen to the minimum to allow for month to month expenses.