The drop in interest rates has meant that many Professional Contractors and Freelancers are not receiving interest on their current accounts or some high interest accounts and so it may be worth you reviewing which accounts you use for your business.
No one likes changing banks or current accounts but luckily you can now access high rates of interest and not have to change your current account or your bank.
These accounts are in addition to your current account.
The benefits
Consistently Strong interest rates
Simple application form no Money Laundering Requirements
Instant Access no strings attached
Strong Scottish Widows Brand with the backing of Lloyds Group.
Separate License from LTSB, HBOS and C&G under the investor compensation scheme.
Easy access via Phone (uk call centre), internet or post
How it works
Director completes and application form and a direct debit authority from the Company Current Account.
On confirmation that the account is open the Director can transfer money between the Current Account and the Business Fund Account.
The Business Fund Account can only receive money from and pay money to the nominated Company Current Account.
Keep your excess funds in the Business Fund Account and start earning interest.
The Accounts
Instant Access Business Fund Account
For the Limited Company - See Interest rates below - Use PDF APP4 & 5
Business 7-Day Notice Account
For the Limited Company - See Interest rates below - use PDF App 6
1 Year Fixed term Business Deposit Account
For the Limited Company - See Interest rates below - use PDF App 1
Pension Fund Account
For Your Pension Fund - See Interest rates below - Contact us for the Application Form
Instant Access Direct Transfer Account
For Your Personal Savings - See interest rates below - Use PDF App2
You can request an application form by emailing service@bfca.eu or log -in to our portal and download them from Forum>BFCA Ltd Services & Documentation>Scottish Widows Bank Accounts.
**NEW**
On July 1st Scottish Widows have introduced two new Business Accounts:
Business 7-Day Notice Account
The key features of the account are:
- Available to new and existing business customers.
- Minimum investment of £500 and maximum of £5 million.
- 7 days notice will be required for withdrawals. Any withdrawals where 7 days notice is not given will be subject to a penalty equivalent to 7 days interest on the withdrawal amount.
- Managed rates of interest guaranteed to be no less than 0.25% below Bank of England Base Rate until 31 December 2012.
- Customer rates of1.75%Gross / AER for balances of £500-£49,999 and2.00%Gross / AER for balances of £50,000 and above.
- All other features are as per our existing no-notice Business Fund Deposit Account.
1-Year Fixed Term Business Deposit Account
The key features of the account are:
- Fixed interest rate of3.00%for the 1 year term.
- Available to new and existing business customers, both Direct and Introduced
- Minimum investment of £10,000 and maximum of £5 million.
- Start date of 16 September 2009 with fixed rate interest credited to the customer's account on 16 September 2010.
- Funds received in advance of the start date will earn interest at Bank of England base rate (currently 0.50%) up to the start date, with application on the start date prior to transfer of the balance plus interest to the fixed term deposit product interest rate.
- Interest paid gross for funds where the appropriate confirmation of tax status has been provided, or where the deposit is over £50,000.
- One-off deposits only, with no additional deposits permitted.
- Early access by exception, and for full closure only i.e. no partial withdrawals permitted. In the event of early closure the capital balance will be returned in full but no interest will be credited.
- No internet access.
- Annual statements only.
- Customers will be advised of their options on maturity 30 days before the maturity date. If no customer instructions are received the funds will be invested into the prevailing Business Fixed Term Deposit account available at that time.
Current Interest Rates
Business Fund Account- used for Business, Trusts, Sipp, Ssas, Charities, Clubs and associations
£500 - £49,999 1.25%
£50,000 plus 1.5%
This account is instant access.
Pension Fund Account - Used for Sipp and Ssas money
Up to £49,999 1.75%
£50,000 2.0%
This account is instant access.
Direct Transfer Account - Used for personal money
Balances over £1,000 3.01% ( Includes a 1% bonus for 6 months - 2.51% AER - 2.01% after 6 months )
This account is instant access.
Business 7-Day Notice Account
£500-£49,999 1.25% and £50,000 and over 1.5%
1-Year Fixed Term Business Deposit Account
£10,000-£5,000,000 3% Gross Fixed Interest
**NEW** 20th August 2009
1 Year Fixed Term Deposit Account
1 Year Fixed Term Business Deposit Account
1 Year Fixed Term Pension Fund Deposit Account
We can arrange these accounts for anyone who has a business and already has a current account for that business.
BFCA Limited Chartered Accountants are pleased to act as introducers for Scottish Widows Bank for Business Fund Accounts with a very competitive interest rate.
We receive a commission for introducing these services to you which is offset against any fees that we would have charged for helping you with the paperwork.