30 May 2007
Small to medium sized enterprises (SMEs) are missing out on more than £1bn in interest every year by keeping their spare cash in low-paying business current accounts, according to research by Standard Life Bank.
In response to this, Standard Life Bank has re-launched its Business Bonus Savings Account, which is aimed at small businesses, local charities and clubs, with a rate of 5.60 per cent gross, for the first six months.
This is a limited offer which allows new customers to Standard Life Bank to benefit from both a market-leading rate during the introductory period and a revert-to rate of 4.65 per cent (gross variable) from 30 November 2007. The account has a minimum deposit of £1,000, with an upper limit of £10m.
Standard Life Bank, sales and marketing director, Alison Crawford, says: “Our research shows that just one in 10 SMEs actively use their business savings accounts, while 26 per cent admit they haven’t even set one up. Yet 60 per cent aren’t happy with the level of interest they are paid on their business current account.”
Meanwhile, Alliance & Leicester Commercial Bank has increased the interest rate on its Instant Reserve Deposit Account to 5.3 per cent gross, applicable on balances between £50,000 and £2 million. On smaller balances of £1 to £49,999, the interest rate is 4.6 per cent gross. Alliance & Leicester says these rates will move in line with base rate changes, with the rate increased or reduced the day after any MPC announcement.
The account has no minimum balance requirement, but an upper limit of £2 million. Account holders are limited to 10 free withdrawals a month (including ATM and all electronic withdrawals such as BACs and CHAPs payments), after which they cost £2 per transaction.
For more on business banking visit:
http://www.find.co.uk/banking/commercial_banking_centre/business_banking_&_factoring