This comparison simply includes all savings accounts.
Fixed Rate Bonds For Limited Companies
Why we like it: Deposit between £1,000 and £1,000,000. No fees or charges for day to day services. 14 Day cooling off period – if you change your mind within 14 days of funding your new business savings account, your savings will be refunded. Minimum balance at all times – £1,000. An interest rate of 0.05% AER is payable on balances below £1,000. No additional deposits or withdrawals
Why we like it: Interest paid annually. Maximum deposit £750,000. FSCS Protected. Winner of Platinum Feefo Trusted Service Award in 2021. Available for: Sole traders – trading in the UK, Limited companies/PLCs/LLPs – incorporated in the UK, Partnerships, Charities – registered in the UK, Clubs and associations, Small local authorities/PCCs/councils, Schools, Religious organisations, Small financial institutions, Credit unions, Trusts. Withdrawals subject to 120 days notice
Why we like it: Deposit between £1,000 and £1,000,000. No fees or charges for day to day services. 14 Day cooling off period – if you change your mind within 14 days of funding your new business savings account, your savings will be refunded. Minimum balance at all times – £1,000. An interest rate of 0.05% AER is payable on balances below £1,000. No additional deposits or withdrawals
Why we like it: Deposit between £1,000 – £1,000,000. Unlimited withdrawals free of charge (via online self service). No fees or charges for day to day services. 14 day cooling off period – if you change your mind within 14 days of funding your new business savings account, your savings will be refunded. Minimum balance at all times – £1,000. New account applications only be accepted from limited (or unlimited) companies. Existing Aldermore Business Savings customers that are sole traders and partnerships will be able to operate their existing accounts as normal
Fixed rate bonds for limited companies
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.
