Business Deposit Accounts: 6 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:
Six Month Fixed Rate Business Deposit Account
Businesses can get a better rate of interest than their current account usually offers by considering other types of business deposit account such as a fixed rate.
The longer a business is prepared to tie up capital the better the rate of interest will be.
The table above shows Six Month Fixed Rate business savings accounts, which will generally pay a higher rate of interest than a normal business current account. Although, businesses need to be mindful that they will not be able to access their capital during the period of the fixed rate and be happy to tie up their funds for the duration of the fixed rate.
Other types of business savings account are available, including Instant Access accounts, Notice accounts, and Fixed Rate accounts with shorter and longer maturity dates.