Not getting anything from my bank in interest.....
Discussion
on my savings in personal or business accounts.
My bank make a big thing everytime I use telephone banking about making my money work better as its on 0% atm, So thought why not...
Told them I would like info on:
Short term 3month - 12 months to act as something better than my savings.
Medium term 1-3 years to act as something better than my cash ISA.
Long term 3+ years for excess cash I cant/dont need asap. (business and personal)
Asked them if the business invested would it affect tax, the status of the buisness, etc.
All the above were on the agenda I gave them.
Came back after 20mins with...
Short term is discouraged from using and should use medium/long, they had no answer to the what happens if I want access to my money and dont want to leave it in a 0% interest account.
Business they couldnt help me on.
Long term, they couldnt give me expected growth on any of the low - high risk schemes with share/funds or bonds.
So why exactly I was asked to come in and discuss them at all I dont know....
If you want to put £20k into a 5 year deal, then they are interested.... I am not at the moment.
So can the finance bods help?
Yes I have asked my accountant for the repercussion on the business aspect, just waiting for a reply from him.
Cheers in advance
My bank make a big thing everytime I use telephone banking about making my money work better as its on 0% atm, So thought why not...
Told them I would like info on:
Short term 3month - 12 months to act as something better than my savings.
Medium term 1-3 years to act as something better than my cash ISA.
Long term 3+ years for excess cash I cant/dont need asap. (business and personal)
Asked them if the business invested would it affect tax, the status of the buisness, etc.
All the above were on the agenda I gave them.
Came back after 20mins with...
Short term is discouraged from using and should use medium/long, they had no answer to the what happens if I want access to my money and dont want to leave it in a 0% interest account.
Business they couldnt help me on.
Long term, they couldnt give me expected growth on any of the low - high risk schemes with share/funds or bonds.
So why exactly I was asked to come in and discuss them at all I dont know....
If you want to put £20k into a 5 year deal, then they are interested.... I am not at the moment.
So can the finance bods help?
Yes I have asked my accountant for the repercussion on the business aspect, just waiting for a reply from him.
Cheers in advance
Just talk to an IFA, especially for the long term stuff as it sounds like you are not risk averse.
For the short and medium term stuff, just have a browse on moneysupermarket.com to get a decent rate. It's easy to find an easy access account you can manage over the internet. Likewise ISAs and bonds for medium term.
I imagine the business will be taxed on the return on its investment just as profit but ask your accountant.
For the short and medium term stuff, just have a browse on moneysupermarket.com to get a decent rate. It's easy to find an easy access account you can manage over the internet. Likewise ISAs and bonds for medium term.
I imagine the business will be taxed on the return on its investment just as profit but ask your accountant.
I had exactly the same problem with my company. I tried to speak to several IFAs about it (who all claimed they could advise on business matters) and they were worse than useless (one suggested I take all the cash out of the company and put it into ISAs). Surprisingly enough, my bank's financial planning advisor turned out to actually be very good and I've ended up putting a wedge of company cash into a managed fund.
My bank also do short-term bonds (I think about 6 months long?) with guaranteed returns around 3%, which is better than the 0.05% interest I currently get on business savings.
Definitely speak to your accountant though. The FPA made me ask them a lot of questions such as if I invested company funds, would the business lose entrepreneur's relief tax for CGT purposes or would the shares benefit from BPR for IHT purposes if one of the owners died.
My bank also do short-term bonds (I think about 6 months long?) with guaranteed returns around 3%, which is better than the 0.05% interest I currently get on business savings.
Definitely speak to your accountant though. The FPA made me ask them a lot of questions such as if I invested company funds, would the business lose entrepreneur's relief tax for CGT purposes or would the shares benefit from BPR for IHT purposes if one of the owners died.
Aranell said:
I had exactly the same problem with my company. I tried to speak to several IFAs about it (who all claimed they could advise on business matters) and they were worse than useless (one suggested I take all the cash out of the company and put it into ISAs). Surprisingly enough, my bank's financial planning advisor turned out to actually be very good and I've ended up putting a wedge of company cash into a managed fund.
My bank also do short-term bonds (I think about 6 months long?) with guaranteed returns around 3%, which is better than the 0.05% interest I currently get on business savings.
Definitely speak to your accountant though. The FPA made me ask them a lot of questions such as if I invested company funds, would the business lose entrepreneur's relief tax for CGT purposes or would the shares benefit from BPR for IHT purposes if one of the owners died.
Hmmm short term bonds... have you any links?My bank also do short-term bonds (I think about 6 months long?) with guaranteed returns around 3%, which is better than the 0.05% interest I currently get on business savings.
Definitely speak to your accountant though. The FPA made me ask them a lot of questions such as if I invested company funds, would the business lose entrepreneur's relief tax for CGT purposes or would the shares benefit from BPR for IHT purposes if one of the owners died.
I got told that kind of thing would have a 4% charge rate so in fact it would cost me to do them.... I asked her how she intended to sell them to anyone and the answer was that the 4% charge was implemented to discourage it.... WTF!!
Dupont666 said:
Hmmm short term bonds... have you any links?
I got told that kind of thing would have a 4% charge rate so in fact it would cost me to do them.... I asked her how she intended to sell them to anyone and the answer was that the 4% charge was implemented to discourage it.... WTF!!
http://www.business.barclays.co.uk/BRC1/jsp/brccontrol?task=homefreevi2&value=11364&target=_self&site=bbbI got told that kind of thing would have a 4% charge rate so in fact it would cost me to do them.... I asked her how she intended to sell them to anyone and the answer was that the 4% charge was implemented to discourage it.... WTF!!
I haven't taken one out this year, but I've had a couple in the past and haven't had any charges associated with them. The only stipulation is you have to put £20k+ at the start for the whole 6 month term. I have no idea what the interest rate is on them - I suspect it's probably pretty poor but not quite as bad as their savings.
I'm happy to recommend you the financial planner I spoke to if you can't find one as, although he isn't a tax advisor, he did have a good grasp on the tax implications of various investments. Would definitely not recommend my bank as a whole though!
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