Business Deposit Accounts: 30 Day Notice
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:
30 Day Notice Business Deposit Accounts
Most businesses need to put capital to one side on a regular basis, perhaps for future VAT, Corporation Tax or PAYE payments. Leaving this money in the business current account means little or no interest will be gained, and as the date when this capital will be needed is generally known in advance, putting the money in an account which will pay a higher rate of interest makes sense.
A variety of business Notice Accounts are available, all requiring different notice periods.
As the name would suggest a 30 Day Notice business deposit account, such as those shown on this table, means that the business has to give 30 days’ notice to withdraw funds; careful planning is therefore required as access without giving notice can often result in a loss of interest.