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Business Savings Account Worries
12/10/2008
Hundreds of thousands of business owners up and down the UK are concerned about the safety of their money in business bank accounts.
Some smaller businesses have their first £50,000 covered under the deposit compensation scheme, in the same way that individual savers have their savings covered.
But to qualify, firms must have annual revenues of less than £6.5m, have a balance sheet showing less than £3.25m of assets and have no more than 50 employees.
And if they are sole traders with their personal accounts held at the same bank, then the £50,000 protection will only apply once.
A spokesman from the Forum of Private Business said that they were pushing for the FSA to extend the scope of the Guaranteed Depositor Protection Scheme on the grounds that, for many businesses, £50,000 would not even cover the current account balance required during their normal course of business.
Some smaller businesses have their first £50,000 covered under the deposit compensation scheme, in the same way that individual savers have their savings covered.
But to qualify, firms must have annual revenues of less than £6.5m, have a balance sheet showing less than £3.25m of assets and have no more than 50 employees.
And if they are sole traders with their personal accounts held at the same bank, then the £50,000 protection will only apply once.
A spokesman from the Forum of Private Business said that they were pushing for the FSA to extend the scope of the Guaranteed Depositor Protection Scheme on the grounds that, for many businesses, £50,000 would not even cover the current account balance required during their normal course of business.