This comparison simply includes all savings accounts.
Fixed Rate Bonds For Limited Companies
Why we like it: Let InvestEngine build and manage an investment portfolio for you. Alternatively invest for yourself with a choice of 650+ exchange traded funds (ETFs). Invest via a lump sum or regular savings plan (weekly, biweekly or monthly basis). If you don’t already have a LEI, InvestEngine can provide one to customers for free for the first year and it will be applied automatically after you have funded your account with a minimum of £100. You can withdraw cash without notice and with no exit fees. Free tools to help you invest. Covered by the Financial Services Compensation Scheme (FSCS). Flat fee of just 0.25% a year for Managed portfolios (ETF costs also apply). DIY investing service is fee free, with no buying and selling costs and no account charges (all you pay is ETF costs). Open to Limited companies and partnerships. If you are investing as a UK-based company, your returns are subject to the UK corporation tax regime. Capital at risk. Tax treatment depends on individual circumstances and all tax rules may change in the future
Disclaimer: The value of your investments can fall as well as rise, so you could get back less than you paid in.
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: Unlimited withdrawals. Interest paid annually. Maximum deposit £250,000. FSCS Protected. Winner of Platinum Feefo Trusted Service Award in 2024. 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.
Why we like it: You must open a Tide Business Account to open a Tide Instant Saver Account. Interest paid monthly on savings. No limits or fees on withdrawals. Eligible deposits with ClearBank are protected up to a total of £85,000 by the Financial Services Compensation Scheme (FSCS).
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.
