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Financial wizards ,help needed please

signs

Banned
Can a LTD company buy premium bonds ?

is the government guarenting(the 50 grand) company money in banks as well as private money ?

Cheers
 

Ultima

Distinguished Member
Can a LTD company buy premium bonds ?

is the government guarenting(the 50 grand) company money in banks as well as private money ?

Cheers

I don't think a company can buy premium bonds but if the company's turnover is less than £1m then the first £50k is covered.

Martin

EDIT - The £1m turnover threshold was reported on MoneySavingExpert.com but it's wrong.

This is the correct info (taken from FSCS site)

But small businesses get similar protection to savers if the limited company can satisfy at least two of the following three criteria:

* A turnover of not more than £6.5m
* A balance sheet total of not more than £3.26m
* A total number of employees of not more than 50.
 
Last edited:

Ian J

Banned
is the government guarenting(the 50 grand) company money in banks as well as private money ?

I don't think so but you should be OK as long as the money is in a "normal" bank. If the major high street banks fail it will be a calamity not worth thinking about which is why they won't be allowed to fail
 

signs

Banned
Thanks for the replies chaps :)

So is it definite about the premium bonds ? as i thought this might have been a "safe" option
 

Jenn

Distinguished Member
I asked the FSCS a few weeks ago about where a company would stand in the current problems and that's what they answered (I guess the amount covered is now £50k but the rest still applies).

The FSCS can pay 100% of the first £35,000 of each depositor's claim, (the small company being the depositor), per authorised institution.

We would only be able to consider the eligibility of a claimant / depositor at the time of a claim being presented, but I believe the information below, will help with your enquiry.

We can confirm that the FSCS protects private individuals and some small businesses. A company would be treated as having a claim and hence protection in its own right. The definition of a "small company" is made with reference to the Companies Act 2006 (as amended 6 April 2008). A small company is one which satisfies two or more of the following requirements:

Turnover: Not more than £6.5 million
Balance Sheet Total: Not more than £3.26 million
Total Number Of Employees: Not more than 50

Limited companies are recognised as separate entities and therefore the companies’ bank accounts are separate to individuals.
 

signs

Banned
Limited companies are recognised as separate entities and therefore the companies’ bank accounts are separate to individuals.

Whats this bit mean Jenn :confused: :)
 

imightbewrong

Distinguished Member
Limited companies are recognised as separate entities and therefore the companies’ bank accounts are separate to individuals.

Whats this bit mean Jenn :confused: :)

Sounds to me like my companies' bank account does not count as 'mine', so I can have 50K of my own money in my savings account in one bank, and my company can have 50K in the *same bank* (or 35K if it's different for companies) and they are *both* covered.
 

Ultima

Distinguished Member
Limited companies are recognised as separate entities and therefore the companies’ bank accounts are separate to individuals.

Whats this bit mean Jenn :confused: :)

It means that "you" and "your ltd company" can have upto £50k in deposit accounts with the same bank and both will be covered assuming the Ltd Company meets the criteria stated above.
 

Abbeygoo

Distinguished Member
Hi Rob

Premium bonds have to be held in the name of individuals NOT limited companies and therefore won't be an option for you.

However, the Financial Services Compensation Scheme extends beyond deposit accounts to other investments such as bonds, unit trusts etc and Limited Companies can invest into these.

As ever, I would suggest you speak to a qualified Financial Adviser before proceeding. ;)
 

hornydragon

Distinguished Member
It means that "you" and "your ltd company" can have upto £50k in deposit accounts with the same bank and both will be covered assuming the Ltd Company meets the criteria stated above.

I might be wrong but isn't it Per FSA liscence ie some brands are operate on the same liscence (cant think of an example but THB bank owns A&B savings under same liscence so if you had £50k in A&B and £50k in THB you only have £50k cover to make it more complex if A&B buys CCCbanmk and it has its own liscenc e you can have £50k in CCbanmk and £50k in A&B and be safe fior £100k

I am just glad i opted for Kaupthing not icesave
 

Ultima

Distinguished Member
I might be wrong but isn't it Per FSA liscence ie some brands are operate on the same liscence (cant think of an example but THB bank owns A&B savings under same liscence so if you had £50k in A&B and £50k in THB you only have £50k cover to make it more complex if A&B buys CCCbanmk and it has its own liscenc e you can have £50k in CCbanmk and £50k in A&B and be safe fior £100k

I am just glad i opted for Kaupthing not icesave

Yes I think you are right, it's a bloody minefield. What a mess these financial institutions have made with so called experts making decisions that they should be shot for.

Martin
 

Dony

Distinguished Member
Rob....Stick the rest of your millions into The Bank of Ireland.....seems like everyone else is doing it!


My sister in law is a bank manager of one of the Banks not covered by the new arragement here, and last week customers withdrew over £2m from their accounts. :eek: She wasn't pleased. :(

That's just one branch.
 

Ultima

Distinguished Member
Rob....Stick the rest of your millions into The Bank of Ireland.....seems like everyone else is doing it!


My sister in law is a bank manager of one of the Banks not covered by the new arragement here, and last week customers withdrew over £2m from their accounts. :eek: She wasn't pleased. :(

That's just one branch.

Ouch, no wonder she wasn't pleased.:eek:
 

Dony

Distinguished Member
Ouch, no wonder she wasn't pleased.:eek:


The bank she works for is owned by a Danish Bank (Dansk I think) who only guarantee £35000.....so you can hardly blame people who were withdrawing up to £500k at a time looking to safeguard their money.


What annnoyed her most though was that her bank always had very strict risk to loan lending policies (she says), and are therefore in a fairly secure financial position, but the customers she is losing are all going to banks who were the ones giving out 100% mortgages over 40 yrs :eek:

Double whammy!!
 

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