Business Deposit Accounts: 60 Day Notice
Business 60 Day Notice
Advantage Account
65 Day Business Notice Account
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:
Financial Services Compensation Scheme
Isle of Man’s Depositors’ Compensation Scheme
Guernsey Banking Deposit Compensation Scheme
Eligible Liabilities Guarantee Scheme
60 Day Notice Business Deposit Accounts
Every business needs to put money to one side, provision for Corporation tax, PAYE and VAT, amongst other things, always needs to be made.
All business owners know that their current account will pay little or no interest; it therefore makes sense to work any money that is being put aside to meet future expenditure hard, to ensure that the best possible interest rate is achieved.
One way of getting a better rate of interest is to use a Notice Account for business. As with accounts you may hold personally, different notice periods are available to suit a range of needs, with better interest rates the longer you are prepared to tie up your savings.
As the name suggests a 60 Day Notice business savings account means that notice of 60 days need to be given before savings can be accessed, although most accounts will allow early access, but generally with an interest penalty, which in some cases can be significant.
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