Interest Rates Remain a Mystery for More Than a Third of Small Businesses
47% of small firms feel potential interest returns aren’t worth the effort of shopping around to get the best deal
34% of UK small businesses don’t know what interest rate they currently receive on their surplus funds, according to a report from Aldermore published today.
The survey of more than 1,000 small enterprises found that 14% don’t even receive interest on their business savings while 81% hold their savings account in the same bank as their current account.
Worryingly, 47% of business owners said they didn’t believe the benefit of any potential returns was worth the hassle of shopping around to get a better deal.
Small businesses also aren’t reviewing their accounts as regularly as last year with nearly one in five (18%) admitting they never review their accounts with only one-in-ten (10%) reviewing their accounts more than once every six months.
Simon Healy, managing director of savings at Aldermore, said:
“Business savings play an important role for small businesses in covering unexpected bills, future investment and general cash flow. It is therefore important businesses make the most of their money and shop around for the best rate.
“While it is understandable that small businesses prefer to keep their surplus funds with the same provider as their business current account, in reality they are not making the most of their hard earned money.”