- £382bn held in business bank accounts which could be earning just 0.02% interest
- Many business owners aren’t aware of the rock bottom interest rates on their deposits
By not using a business savings account with a competitive rate of interest, business owners could be missing out on £3.74bn in annual interest payments according to Aldermore, the specialist bank1.
£382.1bn is currently held in business bank accounts, with high street banks, which could be earning just 0.02% in interest2. Aldermore says, many business owners are simply not aware of the impact of leaving surplus cash in business current accounts or the benefits of using a tailored business saving account.
Just as with individual current accounts, interest rates on business current accounts are far lower than on savings accounts. In fact, many banks don’t pay any interest at all on business current accounts.
Business owners, who are concerned about locking away their money for long periods of time, can earn almost ten times the interest of a business current account and still retain access to their funds, by using an easy access business savings account from Aldermore Bank.
Ewan Edwards, Director of Savings at Aldermore, said: “An enormous amount of money is lying dormant in business current accounts earning next to nothing in interest.”
“Interest rates may be at rock bottom currently, but the worst thing you can do is earn nothing at all on your hard earned business cash. Clearly holding your business cash in a current account is not going to give you the best returns compared to using other products such as a business savings accounts.”
“Business owners who are worried about uncertainty impacting their business and want to have cash on hand should be aware that they can still earn higher rates and have instant access to their money.”
Notes to Editors
1 An Aldermore easy access business savings account pays 1% interest. 1% of £382.1bn is £3.821bn. Currently, on average business deposits in current accounts earn on average 0.02% interest, 0.02% of £382.1bn is £76,420,000. £3,821,000,000-£76,420,000 = £3,744,580,000 (£3.74bn)
2Total sterling deposits held in UK non-financial business accounts with high street banks, UK finance. Average interest rate paid on business current accounts is 0.02% among UK high street banks
For further information, journalists can contact:
Gerard Swinley, Aldermore
Phone: +44(0)20 8185 3143
Mobile: 07799 132424
For further information about Aldermore, please review our Notes to Editors page.