Business Deposit Accounts: 18 Month Fixed Rate
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:
18 Month Fixed Rate Business Deposit Account
Business current accounts, in common with personal current accounts, rarely pay a competitive rate of interest, which can be frustrating for business owners who may have reserves of money effectively being eaten away by inflation.
One option is to look into other types of business deposit accounts such as a Fixed Rate account.
The table above shows the interest rates for 18 Month Fixed Rate business deposit accounts. Better rates of interest may be available if a business is happy to lock away their capital for a longer period of time. However, businesses should be wary of locking up capital which they may need access to as most Fixed Rate business accounts cannot be closed early.