Business Deposit Accounts: 1 Month Fixed Rate
1 Month Fixed Deposit Business Account
Applicable compensation scheme
The accounts featured in the above table are covered by a number of different compensation schemes.
For banks and building societies who are members of the Financial Services Compensation Scheme (FSCS) you should check whether your business meets the qualifying criteria. The following information is taken from the FSCS website:
FSCS was set up mainly to assist private individuals, although some smaller businesses are also covered. Larger businesses are generally excluded, although there are some exceptions to this (for example for claims in respect of certain compulsory insurances). Our rules tell us which claims are eligible and form part of the FSA’s Handbook of rules and guidance, under Redress, Compensation.
As an indicative guide only, for the purposes of deposit and investment claims, smaller companies are protected. A smaller company must meet two of the following criteria (as set out in section 247 of the Companies Act 1985 or section 382 of the Companies Act 2006 as applicable):
- Turnover: not more than £6.5 million
- Balance sheet total: not more than £3.26 million
- Total number of employees: not more than 50
The same levels of compensation apply whether the claimant is a private individual, small business, or a small company.
More information about the various compensation schemes can be found by clicking on the links below:
Financial Services Compensation Scheme
Isle of Man’s Depositors’ Compensation Scheme
Guernsey Banking Deposit Compensation Scheme
Eligible Liabilities Guarantee Scheme
One Month Fixed Rate Business Deposit Accounts
The interest rate on most business current accounts is poor. For businesses holding capital it therefore makes sense to try and improve the interest received by shopping around and considering other types of account.
A Fixed Rate business account pays a set amount of interest for a specific period of time; the interest rate cannot be changed.
A One Month Fixed Rate business deposit account provides a guaranteed rate of interest for a month, after which time the account will mature and the business will be able to consider other options.
Unlike notice accounts most Fixed Rate business accounts do not allow early access to the savings. Business owners should therefore take care to ensure that they can lock away the capital, without access, for the period of the fixed rate.
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