Business savings accounts have proved popular as SMEs have looked to build up their cash reserves as a result of the economic uncertainly, either as a buffer or because they are not currently comfortable investing.
The flagship product in Aldermore's range of business savings accounts is the 1 Year Fixed Rate, paying a market leading rate of 2.00% AER*. For customers who want more flexibility to access their money, Aldermore also offers a 6 Month Fixed Rate and an Easy Access account.
Aldermore launched its business savings range in June last year after recognising there was a gap in the market for SME savings accounts that were simple to open, didn't require customers to switch their existing current account, and offered market-leading rates of interest. This was reinforced by survey data from YouGov which found only 9% of respondents were satisfied with their business savings accounts, while 89% felt that the interest rate they received was unfair. Customers - typically small businesses with up to £1.6 million in annual turnover - have warmly welcomed Aldermore's shake-up of the business savings market, highlighting the competitive interest rates and the ease of opening an account.
Peter Butt, Owner and Managing Director of a Consultancy called PeakCairn Ltd, said: "The cash in my business account was earning next to nothing for me, but lots for my bank. I'd been looking for a while for a business deposit account that allowed me, as a small business, to earn some money on our unused cash. Aldermore offered the perfect solution - I could open the account online in minutes, and there was no requirement for a huge deposit in order to earn a competitive rate".
Linda Pirie, Managing Director of a Childcare and early year's education company, The Croft Nurseries Ltd, said: "This has been the easiest and simplest account opening process I have ever been through. I am delighted."
Ellen Stokes, Director of an Accounting, Book-Keeping & Tax Consultancy firm called LLLJ Ltd, said: "I was looking for a home for some spare cash which offered something more than the pitiful rates on offer elsewhere. The Aldermore 1 Year Fixed Rate account offered a significantly better rate than was available elsewhere and the account opening process was very quick and easy. It can also be run on-line which makes it easy to operate".
Aldermore's simple and straightforward account opening process means that business savings accounts can be fully opened and funded online all within fifteen minutes. Accounts are operational the instant the account is live, allowing for deposits to be transferred from other lower-paying accounts.
Simon Healy, Managing Director of Savings at Aldermore, said: "Aldermore's mantra has always been to offer straightforward products with no bonuses or gimmicks, and so by giving SMEs what they need - an effortless experience - these accounts allow them to get on with the day-to-day running of their own business.
I'm delighted that the new business savings accounts have been so well received by our SME customers, as shown by the monies they have deposited and the overwhelmingly positive feedback received. We will continue in our role of being the SME champion and offer them a fantastic range of savings products"
*AER stands for annual equivalent rate and illustrates the interest rate if it was paid and compounded once each year. Rates are correct at the time of publication. 'Market leading' refers to Aldermore's top table position for its 1 Year Rate on the Moneyfacts website.
For further information about Aldermore, our financial backers and our PR contacts, please review our Notes to Editors page.
Further Notes to Editors
The online survey was conducted with 1,011 UK senior business people in small businesses by YouGov. Respondents were: Proprietor; Chairman; CEO; Partner; Managing Director; Non-Executive Directors; amongst other. The survey was conducted March 2012.
Aldermore's SME savings product range now include six-month and one-year fixed rate, one-year fixed rate with access (customers can withdraw up to 25% of their savings at any time), and easy access accounts.