Business Savings Account?

swillsy · 15 Nov 2022 at 10:35

Hi All, Does anyone have any recommendations for a business savings account? I've never really bothered before but with interest rates and inflation rising I probably should! I use Starling for my current business account. Cheers!

booyaka · 21 Nov 2022 at 16:02

swillsy said:
Hi All, Does anyone have any recommendations for a business savings account? I've never really bothered before but with interest rates and inflation rising I probably should! I use Starling for my current business account. Cheers!

Why would you need one?

A business account is for day to day movement of funds in the business, if you have money in the business that is left over/larger balance - why not take it out of the business/or reinvest into growing the business.

Also most business savings accounts tend to be 1 year/2 year fixed deals - you rarely will find anything with a decent rate and easy access.

swillsy · 22 Nov 2022 at 11:02

booyaka said:
Why would you need one?

A business account is for day to day movement of funds in the business, if you have money in the business that is left over/larger balance - why not take it out of the business/or reinvest into growing the business.

Also most business savings accounts tend to be 1 year/2 year fixed deals - you rarely will find anything with a decent rate and easy access.

It's because I'm dealing with rentals so will wait a year or so until I can afford a new one while I build up cash.

However I think you're right and it would make sense to take it back out and can loan it back when needed for buying!

Axeboy · 23 Nov 2022 at 14:40

Ive got a few savings accounts and bonds, depends on what suits you.

In answer to the chap 2 above, sometimes its not efficient to take the money out of the business depending on peoples tax brackets etc and a pot can be built up quite easily that does nothing. I'd lose a load if I tried to take money out, so I might as well leave it if I dont need it.

Anyways, always check the most up to date deals, I usually use: https://moneyfacts.co.uk/business/business-savings-accounts/

I've currently got an instant savings account with Virgin at about 1.5%, and two fixed accounts I think at either 12months or 18 months doing about 3.5%. One with Allica and one with United Trust. I use the Coop FSB account as my day to day one, no interest of course. Keep in mind it may be worth not going over the FSCS £85k.