Business 95 Day Notice Account will pay 3.00% AER, matching the Bank Base Rate
Following the increase in the Bank Base Rate by 75bps to 3% by the Bank of England, Recognise Bank has announced it will pass on the full rise to its Business 95 Day Notice Savings Account customers, so the account will pay 3.00% AER, matching the Bank Base Rate.
The Bank’s Business 95 Day Notice Account was currently pays 2.25% AER, but last week Recognise pledged to pass on today’s increase in full to help small businesses.
Dean Carter, Group Treasurer of Recognise Bank, said: “Many small businesses are under considerable financial pressures at the moment, so we wanted to show that Recognise is here to support them by paying them the same interest rate as the Base Rate.
“We know that SMEs often keep a cushion of cash to pay future bills or in case of an emergency, such as a late payment from a customer or other cashflow issues. By being able to earn 3.00% AER on their savings, businesses can maximise the earning potential of their cash when they are not using it.”
The new rate of 3.00% AER for the Business 95 Day Notice Account will come into force next Wednesday 9th November and will be applied to new and existing savers.
In addition to the Business 95 Day Notice Account, the Bank also offers SMEs a Business Easy Access Account which pays 2.00% AER. Recognise says it offers a choice of accounts so companies can manage their savings in a way that suits their business and cash flow needs.
All of Recognise Bank’s Business Savings Accounts are FSCS protected up to the maximum for £85,000. They have been designed to be quick to open and easy to manage online, with telephone customer service support if required. Savers also don’t need to have a current account or any other product with Recognise to be able to open a Savings Account.
Recognise Bank launched with a mission to support the UK’s SMEs with great lending and savings products. Smaller business savers often get a raw deal from the main banks who dominate business banking, so much so that research by Recognise* found that almost half of SMEs don’t bother saving and leave their cash in a current account earning no interest at all.
Having business savings is arguably more important than ever due to difficult trading conditions. The Bank’s research* found that around a third of UK SMEs keep a cash surplus as an emergency fund or in case of late payments or other cashflow problems.
*Research was carried out amongst the financial decision makers of 500 SMEs with between 1 and 49 employees by 3Gem in November 2021