Latest Business Savings Rate Deals June 2014
Are your business savings working as hard as they could be? If not, it may be time to reassess whether your current business savings plan is still suitable for your circumstances. Read on for our selection of some of the latest business savings accounts in June 2014 to help you choose the right option for your company.*
Latest short term business savings account deals
If you are prepared to put your business savings away subject to 95 days’ notice for withdrawals, you could benefit from an interest rate of up to 1.36% AER/gross with the Bank of Cyprus 95 Day Notice Account. Interest on this account is calculated daily and it paid into the account each month. The account can be opened with a relatively low minimum of £1,000
For those who want easier access to their business savings, the Asset 30 account from Cater Allen permits withdrawals subject to 30 days’ notice. The account pays monthly interest at a rate of 0.65% AER/gross.
For the quickest access of all, you may want to opt for the Aldermore Easy Access Account, which pays interest of 1.00% gross/AER on balances from £1,000 up to £1,000,000. You can make unlimited withdrawals online, free of charge, from this account.
Latest fixed rate bond deals
For those who are seeking a short-term fixed rate for their business savings, Aldermore’s latest 6 month and 1 year fixed rate deals could be an attractive option. The accounts pay 1.50% and 1.75% AER/gross respectively, on deposits from £1,000 to £1,000,000, with no additional deposits or withdrawals allowed during the term of these plans.
AER – Stands for the Annual Equivalent Rate and illustrates what the interest rate would be if interest was paid and compounded once each year. (As every advertisement for a savings product which quotes an interest rate will contain an AER, you will be able to compare more easily what return you can expect from your savings over time)
Alternatives to fixed rate bonds
If you are prepared to tie up your business capital for a set period, you might be interested in an alternative type of savings product to traditional fixed rate bonds, called structured deposit plans. These plans typically last for three to six years, and could offer you the potential to obtain higher returns than may be possible with a traditional fixed rate bond. Structured deposit plans offer returns that are linked to the performance of an Index such as the FTSE 100. Your capital is not put at risk, but any returns are not guaranteed as they are dependent on market performance.
Growth seekers may wish to take a look at the Investec 5 Year Deposit Plus Plan, which offers a potential return of 26% gross, or 100% of any growth in the FSTE 100 index if higher, with no limit. If, at maturity, the Final Index Level is equal to or lower than the Initial Index Level, you will not receive a return but your original capital will be repaid. An alternative growth option for businesses could be the Societe Generale UK Super Tracker Deposit plan, which offers the potential to return 4.05% x any growth in the FTSE 100, capped at 40.5%. Both these plans have a low minimum of £3,000. Your capital is not put at risk with either plan, but any returns are not guaranteed as they are dependent on the performance of the FTSE 100.
Structured deposit plans are capital protected. There is a risk that the company backing the plan or any company associated with the plan may be unable to repay your initial investment and any returns stated. In this event you may be entitled to compensation from the Financial Services Compensation Scheme (FSCS), depending on your individual circumstances. In addition, you may not get back the full amount of your initial investment if the plan is not held for the full term. The returns from structured deposits are not guaranteed. The past performance of the FTSE 100 Index and any companies listed on the FTSE 100 Index is not a guide to future performance.
No news, feature or comment should be seen as a personal recommendation to invest. If you are at all unsure of the suitability of this type of investment, both in respect of its objectives and its risk profile, you should seek independent financial advice.