Business Deposit Accounts: 9 Month Fixed Rate
Fixed Term Deposit
Fixed Term Deposit
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
Nine Month Fixed Rate Business Deposit Account
Business current accounts rarely pay a competitive rate of interest, which can be frustrating for business owners who see more competitive returns from their own personal savings.
One option is to consider a business savings account, which will provide a better rate of interest than that being offered by their business current account.
Fixed Rate business accounts are one such option.
As the name would suggest this type of account gives a set rate of interest, which cannot be changed, for a specific period of time.
A Nine Month Fixed Rate business account, as shown in the table above, provides a fixed rate of interest for, as the name would suggest, nine months. At maturity the business will have the option of closing the account, rolling over to a new fixed rate or opening an alternative account with a different bank or building society.
Money held in Fixed Rate business accounts cannot generally be accessed before the end of the fixed rate. Business owners should therefore take care not to lock money away which might be needed during the term of the fixed rate.
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