Earn up to 4.08% AER (variable)* on your savings. *Rate includes standard rate of 2.83% AER (minimum balance applies) plus a 0.5% boost each month if you make 15 bank transfers out of the account in the previous month, a 0.5% boost for six months if you complete a switch with CASS and a 0.25% welcome boost for 3 months when you deposit £50,000 or more within 14 days from opening account. Eligibility criteria and T&Cs apply. Instant access – deposit or withdraw funds 24/7. FSCS protected for eligible deposits up to £120,000. Businesses keeping less than £50,000 in their account will earn a reduced rate of interest and may incur fees
You must open a Tide Business Account to open a Tide Instant Saver Account. No limits or fees on withdrawals. Eligible deposits with ClearBank are protected up to a total of £85,000 by the FSCS
If you are a limited company looking for a way to access some competitive interest, you may want to explore your fixed rate bond options.
Fixed rate bonds offer higher interest rates in exchange for tying up savings for a longer period of time. The majority of banks offer fixed rate bonds that run for 1 year, 2 years, 3 years or 5 years. Typically, the higher rates of interest are reserved for the longer fixed rate bonds.
If you take out a fixed rate bond, you should note that you will not be able to access your capital for the duration of the bond. Some fixed rate bond providers will allow you to close the bond early; however, this will typically result in a penalty. A penalty for closing a fixed rate bond early is often calculated by a number of days’ interest, which could reduce your capital significantly.
Criteria for limited companies fixed rate bonds
The fixed rate bonds available to limited companies are different to personal fixed rate bonds. Some banks may have different criteria for their limited company fixed rate bonds. For example, your limited company may have to achieve a certain annual turnover. You should always speak to the fixed rate bond provider to check their specific criteria.
Financial Services Compensation Scheme
Your limited company may benefit from the Financial Services Compensation Scheme (FSCS), which provides protection for the first £85,000 a fixed rate bond provider has held under a single UK banking licence.
In order to receive the FSCS protection your limited company must meet two of the following:
It has 50 or fewer employees
It has a turnover of £6.5 million or less
It has a balance sheet total of £3.26 million or less
Unfortunately, if your limited company does not meet two of the three points above then it will not be covered by the scheme.
