Business Deposit Accounts: 90 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:
90 Day Notice Business Deposit Accounts
Like people, businesses need to put money to one side each month. Corporation Tax as well as PAYE and VAT payments need to be met and often money is left in the business current account to pay these bills at a later date.
The interest rate on most business accounts is extremely unattractive; it therefore makes sense to work this money harder, by using an alternative type of business savings account.
One option, is to use a business Notice Account, where a higher rate of interest is offered because notice needs to be given. A 90 Day Notice business account means that a business would need to give, unsurprisingly, 90 days’ notice to access the capital, although most accounts will allow early access subject to a penalty being charged.