Businesses Urged To Unlock Extra £473m In Interest
A new study has revealed one in three business deposit accounts pay 0.1% interest or less, suggesting millions of firms are getting a ‘raw deal’
UK small businesses are being urged to shop around for better banking deals and avail of an extra £473m worth of interest.
A new study from Cambridge & Counties Bank has revealed that 30% of all business deposit accounts pay just 0.1% interest or less on balances of £25,000 – suggesting millions of small firms are getting a raw deal.
Following the August rate cut by the Bank of England, the average rate available for such accounts has declined to 0.41%, 38% down from the start of the year – representing a missed opportunity for small businesses.
UK small enterprises currently hold an estimated £69bn in deposit accounts, with business deposits up 3% from last year.
Mike Kirsopp, chief executive officer at Cambridge & Counties Bank, said:
“There is a significant spread of rates on the market so businesses have a great opportunity to shop around to get a better return on their deposits. It’s all too easy to stick with the same old bank but we’d urge small businesses to make it their New Year resolution to settle for more and take advantage of the higher rates that are available on the market”.