Business Deposit Accounts: 3 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:
Three Month Fixed Rate Business Deposit Account
The problem of low interest rates on business current accounts can partly be solved by shopping around for better rates of interest and considering other types of business savings account.
A Fixed Rate business savings account pays a set rate of interest at the maturity date, which in the case of the table above is for a period of three months.
A Three Month Fixed Rate business savings account, means that a business needs to be comfortable that capital can be tied up for this period of time, as access to the savings is generally not allowed during the period of the fixed rate.
As with Fixed Rate accounts which may be held personally, the interest rate increases the longer a business is prepared to tie up their money.