Business Deposit Accounts: 7 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:
7 Day Notice Business Deposit Accounts
Putting money in a business savings account can often give you a better interest rate when compared to a business current account. Most business current accounts offer very unattractive interest rates and it can therefore be better to open a business savings account.
One option is to open a Business Notice Account. Notice accounts can provide a higher interest rate as a notice needs to be given before holders can access the account.
A 7 Day Notice business account means that a business requires 7 days’ notice of a withdrawal from the savings account. If a business account is accessed before the 7 days, the account holder will receive a penalty charge.