Banking 101 –

Why open a commercial fixed deposit account?

For businesses, cash is king and having money set aside for opportunities or eventualities is a core part of any business strategy. If you have a lump sum that your business or organisation will not need for a period of time, a commercial fixed-term deposit will earn guaranteed interest.

Published

16th February 2022

What is a commercial bank fixed deposit account?

Commercial fixed deposit accounts are for businesses and organisations. They offer a predictable income on lump sums with a fixed rate of interest. As the name suggests, they operate for a fixed term, starting and finishing on a set date.

Benefits of a commercial fixed-term deposit account

If you are confident, you will not need access to the funds for a term of the arrangement, this kind of account ensures that your money will continue to work for you. You will know in advance what return it will give to your business. The benefit is that you get a fixed rate of return, and you can create a specific strategy around multiple maturities, in line with when you need funds. This is particularly beneficial in times of economic uncertainty, or if you are unwilling to put the funds at risk. For example, your rate will remain unchanged if interest rates go down during your term.

When is a fixed-term deposit not a good idea?

Fixed terms are not for everyone. Sometimes, flexibility is vital. If your money is in a fixed term account, you will not be able to withdraw your money until the term has ended without forfeiting the interest. If your need for funds is unpredictable, it might be best to keep your cash readily available in a call deposit account or a shorter note account, both of which have a set notice period. Our experienced relationship managers will work with you to help you understand the options available so you can decide which option is best.

How much are commercial deposit interest rates?

This depends on several factors, including the length of your term and the amount of cash you have available.

To see the current rates on Arbuthnot Latham fixed-term deposits and notice accounts, click here.

Commercial fixed deposit accounts at Arbuthnot Latham

Commercial bank fixed deposits at Arbuthnot Latham offer a competitive interest rate paid at maturity with bespoke features to suit each client (terms and conditions apply).

Speak to our knowledgeable team to learn more about fixed deposits and other commercial banking services.

Becoming a client

Take control of your finances today by completing our enquiry form. Alternatively, you can call us on the number below and one of our team will be more than happy to talk about your future.

+44 (0)20 7012 2500