You’ve worked hard to build up funds in your company account but sadly its not been working hard for you recently. Its important to get the best possible returns on your cash and a new Royal Deposit Plan 2 account from RBS and Legal & General, offers a fixed rate of 4% pa for three years. But hurry, the offer ends on 16th April 2010.
With the base rate at a historic low for a year now, clients have been understandably less than impressed with the returns on their cash investments. The Royal Deposit plan from RBS aims to improve returns by offering a healthy 4% on your cash investment. This rate is fixed for three years but partial withdrawals are available within this time and will be substantially higher than the returns offered on ordinary High Street corporate accounts.
If you operate through a one man ltd company then you can invest business savings in the account or alternatively all Contractors can invest personally as an individual investment, an ISA, via an offshore bond or as a SIPP or SSAS. You can also benefit from the peace of mind that any investment up to £50,000 is protected under the financial compensation scheme.
Given the increasing tax burden on salary and dividends many clients will be retaining profits within their company. This strategy will involve deferring taxable income until such time as the public finances allow for reduced deductions or perhaps you are paying income tax at a lower band than is currently the case.
There is obviously a need to ensure such retained funds work as hard as possible for you. We have been looking at active investment of company money into areas such as the stock market via an offshore bond but more risk averse clients will be looking for cash deposits instead and this is where the Royal Deposit Account comes into its own.
This offer is available for a limited time only and as such all applications must be made before 16th April 2010.