Best corporate rates for £ 250k ?

Hello,

I am with HBOS and they are paying about 0.15% on a 30 day account!

What reasonable options are there? By "reasonable" I mean NOT some Irish bank :)

Also, is it legal to draw the money out and invest it under my own name? I own the business 100%.

Thank you for any input.

Reply to
nobody
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If it's a limited company (and you own all the shares) then probably not. If it's just a sole tradership, then almost certainly yes.

Reply to
Ronald Raygun

Don't take the above advice as saying it is ok to take the money!

If the business is a limited company it is not illegal but you would have to either declare it as dividends and pay tax on it or the company would have to pay a 25% penalty on any loan it makes to you. This penalty would be refunded eventually after the loan was repaid. You would also be taxed on the benefit of the company lending you money if it was free of interest or reduced interest.

I would advice you don't draw the money out of a limited company unless the company owes you the money.

I assume it is a limited company otherwise most likely you would already be taking the money out any time you want.

Reply to
PeterSaxton

I don't see how anyone could interpret an answer that it's "probably not" legal as saying it's OK!

Mind you, I had considered wording it a little more strongly, i.e. "almost certainly not" instead of "probably not".

He would not be taxed if there is no benefit. He appears to be saying that there are more lucrative interest rates available to personal than corporate savers, and I assume he meant that he would be investing the money on behalf of the company, and would treat any interest received not as his personal income, but as the company's.

To be frank, if he's asking questions like this, he probably doesn't know that it's OK to do it in the case of a sole tradership.

Nevertheless, I too think it likely that he's talking about a Ltd Co, although the only real evidence in support of that is his use of the word "corporate" in the subject line.

Reply to
Ronald Raygun

you should check with your (an) accountant but I think NO.

I am with A&L Commercial who offered the very best rates for business (Business immediate access account) up until the last few months. One year ago I was getting 9K interest per annum, it's now 750.....and falling from what I understand.

dj (Ltd Co since 1987)

Reply to
Ten Pin Bowling

PeterSaxton wrote

I had some accounting advice on this and had gathered that it was not really worth doing. The interest would also be paid (to me) net of tax and while there is a way to get around that in the company afterwards, it's too much of a hassle.

So we will have to make do with the ~2% interest rates, even on 6 digits.

Reply to
nobody

Secure Trust Bank - 3.57%, 60 day notice Butterfield Private Bank - 2.78%, 100 day notice Butterfield Private Bank - 2.53% - 40 day notice Scottish Widows - 2.5% - instant access United Trust Bank - 2.5% - 3 month notice United Trust Bank - 2.45% - 40 day notice Standard Life - 2.3% - 10 day notice

Secure Trust Bank is part of Arbuthnot Banking Group, an AIM listed bank in the UK Butterfield Private Bank is the UK subsidiary of a Bermudan bank Scottish Widows is owned by Lloyds United Trust Bank is a privately owned British bank Standard Life is a British insurance company

As you don't want an Irish bank, you won't be interested in Anglo Irish,

2.9% for 30 day notice, 2.8% for 7 day notice or 2.75% for instant access. They are owned by the Irish government.
Reply to
Jonathan Bryce

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