Aldermore has launches new business savings accounts which it believes will ‘shake-up’ SME banking.
With a one-year fixed rate account paying 3.25% AER and a six-month fixed rate account at 2.35% AER, the new business accounts can be opened online in 15 minutes.
In addition, the accounts are operational the instant the account is live, allowing for deposits to be transferred from other lower paying accounts, with immediate effect.
Aldermore’s business savings accounts can be opened without the prerequisite of moving a company’s existing accounts.
Aldermore decided to launch these new business savings accounts following commissioned research by YouGov, who surveyed more than 1,000 small firms.
It revealed that 89% of SMEs feel the interest rate they receive for the business savings is unfair while only 9% of SMEs are satisfied with their business savings accounts. 80% of SMEs think that banks do not make it easy for them to switch accounts, the research also found.
The survey also highlighted a 60% of SMEs are holding on to an average of £190,000 in the bank to act as buffer for any unpredicted financial difficulty. Additionally, it identified online account opening is three times as important to businesses as being able to open an account in branch.
“Aldermore’s new business accounts will flip much of the poor practices on its head, as we are offering great rates and true online access, which is also supported by a UK based call centre,” Phillip Monks, Aldermore’s CEO said.
“As the SME champion, we are here to meet small business needs and we hope this announcement means we are going to shake-up the British savings market. This step-change for the bank is just the start, as there are other new initiatives which will follow throughout this year.”
He added: “Our mantra has always been to offer straightforward products with no bonuses or gimmicks, and so by giving SMEs what they deserve – an effortless experience – these accounts will allow them to get on with the day-to-day running of their own business.”