UK Businesses Need to get Savings Savvy in Current Economic Climate

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With the difficult economic conditions persisting, Standard Life Bank is urging UK businesses to be savvier with their hard earned savings, following research that businesses are potentially missing out on significant interest payments by not using a business savings account.

For businesses that can plan ahead and are prepared to tie up their money for a short time, fixed rate business bonds provide an opportunity for businesses to make their money work harder and reap even greater interest rewards.

The research found that, on average, businesses are holding £12,630 in low paying business current accounts. More than one in five businesses (21%) had over £20,000 pounds in a business current account and nearly a third of businesses didn't know how much was in their current account.

Among the 500 managing directors, financial directors and senior executives questioned, one in two are unhappy with the interest rate on their business current account, some accounts paying less than 2% compared to business savings accounts often paying over 5% interest. Over one third (34%) do not have a separate business savings account and of those that do, 24% rarely or never use it. Just under one third (32%) actively use their business savings account.

Garry Mullen, marketing manager - Cash Savings said, "It's clear that some businesses, charities and clubs in the UK are missing a trick by not taking advantage of the higher interest rates on offer with a business savings account. With the difficult economic conditions persisting, businesses should be making the most of any funds they have available. Actively managing your savings can result in significant financial gains and peace of mind for businesses."

"For businesses that can plan ahead and are prepared to tie up their money for a short time, fixed rate business bonds provide an opportunity for businesses to make their money work harder and reap even greater interest rewards."

Standard Life Bank currently has two short term bonds available both currently paying above 6% gross AER and has announced today its new Business Bonus Savings Account, with a highly competitive bonus rate of 5.25% gross variable AER, for the first six months, there after reverting to 3.65% variable gross AER.

This is a limited offer for customers that have not previously held a Business Bonus Account. The Business Bonus Savings Account requires a minimum opening deposit of £1,000 with a maximum investment of £10 million. It also provides the opportunity to add more funds to the account at any time and customers incur no charges. Customers can benefit from full flexibility of a direct access savings account (DASA), and can manage their money through e-based transactions.

Standard Life provide a wide range of financial services including Health Insurance, Pension Plans, Mortgages, ISA Investments & Capital Bonds

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Nicola McGowan
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