Recommendation for a deposit account for a Limited Company

[ryanline79]

Hi all,

With some of the new entrants into the market offering better deposit rates than the Irish banks, I'm trying to figure which would be best for a limited company / available to sign up for a limited company?

I want to use one of these as an account where we can put aside tax and vat and at least be earning a small bit of interest on it.

From what I can see
Bunq - Available for sign-up by a Limited Company - Yes - €100,000 Deposit Guarantee - Yes (Dutch)
N26 - Available for sign-up by a Limited Company - No (Only sole traders) - €100,000 Deposit Guarantee - Yes (German)
Revolut - Available for sign-up a Limited Company - Yes but Savings rates not available to a limited company as far as I can see. €100,000 Deposit Guarantee - Yes (Lithuania)

Any of the rest worth looking at and is a limited company covered by a deposit guarantee scheme?

 

[T McGibney]

Assuming this is a close company, the punitive way deposit interest accruing to such a company is taxed may well mean it's not worth bothering.

 

[ryanline79]

Assuming this is a close company, the punitive way deposit interest accruing to such a company is taxed may well mean it's not worth bothering.

Thanks for the reply. I wasn't aware of that, I presumed that it was just regular DIRT tax or how is it taxed?

 

[T McGibney]

Thanks for the reply. I wasn't aware of that, I presumed that it was just regular DIRT tax or how is it taxed?

No, it's much worse than that. Effectively 45% tax, possibly even more.

 

[Brendan Burgess]

I want to use one of these as an account where we can put aside tax and vat and at least be earning a small bit of interest on it.

Simplicity is an important factor.

It's probably easiest to keep it in your current account.

If you have it for a very long time, maybe it's worth shopping around.

Or maybe your bank has a deposit account where you can move it back and forward between it and your current account easily online.

You say it's for tax and VAT and that is fine, but if you have large amounts of cash permanently, you should review whether you are managing your tax affairs efficiently and whether you would be better to take the cash and profits out of the company.

Brendan

 

[T McGibney]

The OP should really be discussing routine housekeeping issues like this with their accountant, on an ongoing basis.