Are the funds in my company bank account safe?

This is a question that we have been getting asked alot recently.

The good news is that a UK based small business account is almost certainly covered to the same extent as the personal bank account guarantee which currently covers deposits of up to £35k (soon to be increased to £50k ).  This is because a business account is covered by the small business guarantee as long as the business qualifies for two of the following three
criteria:

- Your annual turnover is below £6.5m
- Your balance sheet total is below £3.26m
- You have less than 50 employees

It is possible to get more protection if you spread your funds around several banks.  However, two banks that are owned by one parent company, where only the parent is authorised by the FSA, will only be covered for £35k over all of it’s group bank accounts.

Therefore ensure that you spread your deposits across different UK banks with separate FSA registrations. For example, having one account with Barclays and another one with HSBC each holding £35k of your savings, will enable you to benefit from a guarantee on £70k.

0 comments ↓

There are no comments yet...Kick things off by filling out the form below.

Leave a Comment