Interest on business a/c

[icarus]

I have some funds in my business accounts and I really want to make some kind of return on them. Last year it was no problem: Northern Crock were paying a good rate in their business reserve account. But now all business account rates are on the floor. The best you can do is about 2%, for which you have to trust an Irish casino. Can anybody suggest a low-risk, short termish way for my company to get at least say 2%?

(Thanking you in advance, but bracing self for possible slew of smart-arsed get-rich-quick schemes.)

[AtW]

Can anybody suggest a low-risk, short termish way for my company to get at least say 2%?

Why would banks want to pay you 2% when they can borrow money from BoE at 0.5%?

http://www.bankrate.com/rates/interest-rates/libor.aspx

LIBOR is a joke, 6 months rate is 0.54%

[alreadypacked]

Spoke to my accountant last week, this is the number one question from all his clients. No he didn't have an answer. My current solution is to take the money out in div. and spend it

[NickFitz]

There was an article about small business deposit accounts in The Grauniad's money section a week ago last Saturday (2009-11-07). Unfortunately the online version doesn't seem to have the comparison chart that appeared in the print edition; let me see if I can find the salient points for you:

Best Business Investment Accounts (The Grauniad's words, not mine)

Company           Notice     Min. dep.  Max. dep.   Gross Interest
Secure Trust      60 day     £10,000    £1,000,000  2.52%
Anglo Irish       30 day     £1         £1,000,000  2.5%
Investec Private  3 month    £50,000    £250,000    2.5%
Butterfield       100 day    £50,000    no max.     2.5%
Anglo Irish       7 day      £1         £1,000,000  2.3%
Anglo Irish       None       £1         £1,000,000  2.25%

The account names tend to be too long to fit into the above table; they are, in order from the top and capitalised as in the paper:

• 60 days Notice Variable Interest (Issue 2)
• 30 Day Notice
• Business High 5
• 100 Day Notice
• 7 Day Notice
• Quick Access Business Deposit

I accept no responsibility for any mistakes I may have made in transcribing this from the paper, or indeed any mistakes that were in the paper in the first place - I haven't been following this in their corrections column

[Andy2]

most of them are irish casinos
who is this investec company never heard of them

[DimPrawn]

most of them are irish casinos

WHS.

Try explaining to HMR&C that all your tax money went kaput when Ireland went bankrupt.

[AtW]

There was an article about small business deposit accounts in The Grauniad's money section a week ago last Saturday (2009-11-07). Unfortunately the online version doesn't seem to have the comparison chart that appeared in the print edition; let me see if I can find the salient points for you:

Best Business Investment Accounts (The Grauniad's words, not mine)

Company           Notice     Min. dep.  Max. dep.   Gross Interest
Secure Trust      60 day     £10,000    £1,000,000  2.52%
Anglo Irish       30 day     £1         £1,000,000  2.5%
Investec Private  3 month    £50,000    £250,000    2.5%
Butterfield       100 day    £50,000    no max.     2.5%
Anglo Irish       7 day      £1         £1,000,000  2.3%
Anglo Irish       None       £1         £1,000,000  2.25%

The account names tend to be too long to fit into the above table; they are, in order from the top and capitalised as in the paper:

• 60 days Notice Variable Interest (Issue 2)
• 30 Day Notice
• Business High 5
• 100 Day Notice
• 7 Day Notice
• Quick Access Business Deposit

I accept no responsibility for any mistakes I may have made in transcribing this from the paper, or indeed any mistakes that were in the paper in the first place - I haven't been following this in their corrections column

Why would a proper bank offer higher interest rate to consumers/small businesses (overheads, reserves need to be created) if they could borrow a lot cheaper on interbank exchange at LIBOR being much lower?

[alreadypacked]

Why would a proper bank offer higher interest rate to consumers/small businesses (overheads, reserves need to be created) if they could borrow a lot cheaper on interbank exchange at LIBOR being much lower?

I think that Anglo Irish are owned by a Dutch bank, and are not under-written by the Irish government. Some Dutch banks are a bit unstable at the moment. So it is a bit risky

[Sally BFCA]

Scottish Widows are offering a 1 year fixed deposit account which pays 2.5% interest.

Their accounts can be 'bolted'on to your existing company bank accounts.

[Lumiere]

I think this one is the best at the moment if you want flexibility and UK based:
http://www.harpendenbs.co.uk/business-notice.asp

2%

no notice

25 free withdrawals per year

£5000 minimum deposit