Business Deposit Accounts: 2 Year Fixed Rate
2 Year Business Savings Bond (Issue 5)
Fixed Term Deposit
2 Year SME Fixed Saver (Issue 47)
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
Two Year Fixed Rate Business Deposit Account
A business savings account can help to improve the interest rate businesses are getting on any savings they might have.
In common with personal accounts most business accounts pay little, if any, interest. To get a better return on savings businesses need to look to alternative types of business deposit accounts.
A Fixed Rate business savings account pays a set rate of interest for a specific period of time, giving certainty to the business owner. The table above shows the interest rates currently available for Two Year Fixed Rate business savings accounts.
The longer a business is prepared to fix the interest rate the better it will be, however money saved into fixed rate accounts cannot generally be accessed before the account matures. Businesses therefore need to be careful not to tie up money which they will need access to during the term of the fixed rate.
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