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Published 20 hours ago • verified publisher icon tadast

Business savings account with interest

Open Ricardo1980 opened this issue 6 years ago • 6 comments

Hello,

Does anyone know a good business savings account? Right now I have two accounts in metro bank (connected to Crunch). The normal one and the savings account. The last one only gives me 0.30% in interest, which is crap (although better than 0)

What recommendations do you have? Thanks a lot.

Ricardo1980 avatar Sep 27 '18 12:09 Ricardo1980

I found this https://redwoodbank.co.uk/savings/95-day-savings-account/

1.6% interest rate.

Does anyone know Redwoodbank?

Ricardo1980 avatar Oct 18 '18 08:10 Ricardo1980

Hi, this is a great topic to research! I haven't heard about redwood bank, but it looks appealing, the two things you need to consider is:

  • the 95 day notice period – I think this is long enough to be a problem. Why not pay yourself dividends as soon as you can and fill out your personal ISA to get interest?
  • check if it's covered by FSCS

Other thoughts:

  • paying HMRC taxes as early as you can. They will pay interest on early payment, currently 0.5%, which is higher than your metro offer :)
  • keep an eye on https://www.marcus.co.uk/uk/en, their personal saving account offer is quite appealing, if they roll out a similar business solution it might be worth considering

tadast avatar Oct 24 '18 16:10 tadast

  1. There is another option with 30 days notice period and the interested is similar, slightly lower.

  2. Yes, it is.

  3. I don’t understand that. Any link? I am interested.

  4. Nope. I don’t use anything related with Goldman Sachs.

Ricardo1980 avatar Oct 25 '18 07:10 Ricardo1980

If you pay your tax early HMRC will apply a 'repayment' interest rate on the amount you've paid early until it's due https://www.gov.uk/government/publications/rates-and-allowances-hmrc-interest-rates-for-late-and-early-payments/rates-and-allowances-hmrc-interest-rates

tadast avatar Oct 25 '18 08:10 tadast

How does that work? Do I have to claim it or is it automatic? Imagine for example this year, that ends 5 April 2019, when do I have to pay my taxes to get that interest? and when is it considered late? Thanks a lot.

Ricardo1980 avatar Oct 25 '18 11:10 Ricardo1980

I think corporation tax is based on when you've established a company, so after a year passes you can calculate the corp tax and pay it immediately even though it's not due for another 9 months. You accountant should know all the deadlines so all you need to do is pay as soon as you know how much you owe, and HMRC will automatically refund it to your account (if that's set up - you have to call HMRC) or send you a check otherwise.

tadast avatar Oct 25 '18 11:10 tadast