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ways to max return on Ltd Co. cash reserve?

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    ways to max return on Ltd Co. cash reserve?

    I am sure a few people here have some decent amount of money stuck in business reserve accounts. Well now that interest on saving has gone to the dogs, its time to start thinking of ways of maximising return.

    Interest on my Abbey Business reserve account is now down to about 1.5%. Thats half of previous month A shame i could not just withdraw the cash as put into my mortgage to reduce my interest payments

    Question is where should we be investing surplus funds to get a better return than those idiot banks are willing to give? preferably guaranteed returns.


    It seems that interest of international savings accounts are quite high( Halifax 8% unless mistaken) and I was wondering if the scenario below is ok without breaking any laws.

    Say I know someone I can trust that has an international personal savings account. I then give then a loan (e.g. £50k) form my business account. They then pay me monthly interest as paid by that bank account. Could this actually work?



    cheers

    css_jay99

    #2
    Why not lend it to yourself at commercial rate of interest and use it to offset your mortgage?

    The interest you pay will then be profit, and you can pay that to yourself as a divvie, less the tax.

    Comment


      #3
      Originally posted by css_jay99 View Post
      I am sure a few people here have some decent amount of money stuck in business reserve accounts. Well now that interest on saving has gone to the dogs, its time to start thinking of ways of maximising return.

      Interest on my Abbey Business reserve account is now down to about 1.5%. Thats half of previous month A shame i could not just withdraw the cash as put into my mortgage to reduce my interest payments

      Question is where should we be investing surplus funds to get a better return than those idiot banks are willing to give? preferably guaranteed returns.


      It seems that interest of international savings accounts are quite high( Halifax 8% unless mistaken) and I was wondering if the scenario below is ok without breaking any laws.

      Say I know someone I can trust that has an international personal savings account. I then give then a loan (e.g. £50k) form my business account. They then pay me monthly interest as paid by that bank account. Could this actually work?



      cheers

      css_jay99
      I believe you can lend money to whoever you want at whatever interest rate you want.

      But if you reach a certain level you might have to register as a bank.

      But a one off loan to a friend should not get you into any trouble.

      Remember though if you lend to a account in a foreign country, you will most likely be running a currency risk.
      "Condoms should come with a free pack of earplugs."

      Comment


        #4
        Originally posted by Archangel View Post
        Why not lend it to yourself at commercial rate of interest and use it to offset your mortgage?
        where do i find some info on the rate of interest to use?. This kinda contradicts what ThomasSoerensen says that i can set the interest at whatever rate. Additionally wont an employee/directors loan constitute an attributable BIK?


        Originally posted by ThomasSoerensen View Post
        Remember though if you lend to a account in a foreign country, you will most likely be running a currency risk.
        friend has an international account with Barclays. i assume those accounts are subject to a max of basic rate tax

        Comment

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