Business Deposit Accounts: 5 Year 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:
Five Year Fixed Rate Business Deposit Account
Business current accounts generally pay a very poor rate of interest and are not suitable for holding capital over a long period of time.
Business owners should consider other options to improve the rate of interest they are receiving on their savings. Options to consider include other Instant Access accounts, Notice Accounts or Fixed Rate business accounts.
Fixed Rate business accounts pay a fixed rate of interest for a set number of years. Early access to the capital is not generally allowed, business owners should therefore be careful not to tie up savings which they might need access to during the term of the fixed rate.
The table above shows interest rates for Five Year Fixed Rate business accounts, which is the longest fixed rate period available.