![My business current account often has a large balance in it until I pay my VAT and Corporation Tax. How can I make this work for me?](//acumenica.b-cdn.net/images/2024/01/30/YAWA%20Logo-021_large.jpg)#  My business current account often has a large balance in it until I pay my VAT and Corporation Tax. How can I make this work for me?

  [You Ask We Answer](https://www.acumenica.co.uk/you-ask-we-answer)

#### Consultant asks:

My company bank account often has a fairly large credit balance in it because I have provided for my Corporation Tax and VAT. The interest it earns is pitiful. What can I do to make this cash work a little harder?

#### Acumenica answers:

First, what you **absolutely should not** do: Don’t be tempted to withdraw the money from the business account and put it in to your personal savings account. You’ll end up creating a Director’s Loan Account and possibly incurring a punitive [**tax charge**](https://www.acumenica.co.uk/you-ask-we-answer/whats-a-directors-loan-account-s455-tax-and-who-pays-it).

The easiest, and least risky, option is to open a business savings account. Aldermore\*, for example, are offering a 1-year fixed rate savings account to limited companies at 4.35%.

So, if you know roughly what your corporation tax bill is going to be a year in advance - you know that right? - you can stick it away and earn a nice wee lump of interest on it.

If you're not quite organised or confident enough to do that, there's also an instant access product offering 4.05%.

\*Other banks are available and offer similar products. We are not recommending Aldermore, just using them as an example.