Business Deposit Accounts: 6 Month 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:
6 Month Notice Business Deposit Accounts
Businesses operating in the UK often need to put capital to one side to pay for future liabilities such Corporation Tax bills, VAT or PAYE. Other businesses will hold capital simply because they are making a profit or have surplus cash-flow.
Most business owners recognise that the majority of business current accounts offer very poor rates of interest on even relatively large balances. Therefore businesses need to shop around to find alternative savings accounts, which will pay them interest on their balances.
A Notice business account can often give you a better return than Instance Access accounts, as notice needs to be given to withdraw money, meaning that the bank has some certainty over how long they will hold your business’s savings. As the name suggests a Six Month Notice business savings account means that a notice period of six months needs to be given before savings can be accessed. If funds are accessed during the notice period a penalty will usually be payable.