As commodity and energy prices rise, and as businesses in Northern Ireland slowly become accustomed to unfavourable exchange rates and generally challenging times, more and more local businesses are finding themselves looking for a good home for their deposits.
Putting your business’ money on deposit will help you to make a better return on your funds compared to leaving balances in your business current account or in short term accounts.
But, before opening a deposit account there are a number of factors to consider.
Your top three issues should be what you want to use your money for in the future, how secure is your current cash flow, and what term will suit you best?
Whatever the size of your deposit, it is important to think about what your future plans are for your lump sum as this will be a key factor when you are |choosing your term. Challenging times for businesses can often mean that cash flow may not be as smooth as usual and it is important to plan for any changes in your business over the next few months.
There is great value to be found in short term deposits such as 30 and 90 day notice deposits at the moment. If you are planning a small expansion or simply want to put your money away for a short time, this type of easily accessible product may be a good place to start.
One of the challenges that many businesses have is trying to identify the best bank for their deposit.
It is often a good idea for businesses to seek out a different home for their deposit to that of their main bank. Why? Doing this will keep your main bank on its toes.
You should always be open to looking at different banks for better offers.
By doing so you are also showing your main lender just how serious you are about making your money work.
Like most services finding a bank that can provide a tailored fit solution for your business needs is key.
Remember that taking the trouble to research the bank that can offer you the most experience and expertise can help you with your day to day banking needs as well as your long term deposit requirements.
We at Bank of Scotland (Ireland) have developed a range of products that our customers have shown great enthusiasm for and we are confident that we can deliver value for money for many more businesses throughout Northern Ireland.
Richard Lewis is Bank of Scotland (Ireland) deposits manager for Northern Ireland. Bank of Scotland (Ireland) Deposits Northern Ireland can be contacted at 028 9044 2600.