Just 1% of business savings accounts get the thumbs up Go compare with our comparison table

Just 1% of business savings accounts get the thumbs up

17 August 2010 / by Rachel Mason

According to a poll carried out by Fair Investment Company, 99% of businesses say they are unhappy with their savings account rate.

The average rate for an instant access business savings account is just 0.52%, and three year fixed deals are not offering much better, with the average just 1.05%.

With rates like this, it is no surprise the satisfaction levels are so low, says David Doulton, director of Fair Investment Company.

"The base rate is still at its historic low of 0.5%, so it is inevitable that rates will be fairly low across the board, but rates for businesses are particularly bad, especially when you compare them with the equivalent personal savings accounts.

"While the average personal instant access account is offering 0.74%, the equivalent business account is 0.52%. And where the average personal three year fixed deal is 3.50%, businesses are being offered just 1.05% on average."

Mr Doulton says although the average rates are low, there are still some good deals on the market, you just need to know where to find them.

"We believe many businesses are aware that their current savings solution is less than adequate but don’t know what to do about it – our new business savings accounts comparison service, provides them with the much needed tools required to help them make more from their money."

The service compares leading business savings accounts and can offer up to 4.15% on fixed rates and up to 2.19% on 3 month notice accounts, and is one of only a few places where customers can access one of the market's leading 3 year fixed rate deals – The RBS Royal Deposit Plan 5. The plan is offering 4.15% and is only available through intermediaries like Fair Investment Company – RBS are not offering a direct deal.

David continues, "If your business is receiving low interest - and with the averages so low, it probably is - it is worth taking a look at some of the deals we have - our best three year deal is almost four times better than the average.

© Fair Investment Company Ltd
 

Business Savings Selection
ProviderAccountRate TermApply
1.10%1 YearMore Info >
1.10% gross/AER. £1,000 minimum opening balance. No withdrawals.
1.00%6 MonthsMore Info >
1.00% gross/AER. £1,000 minimum opening balance. No withdrawals.
0.85%Easy AccessMore Info >
0.85% gross/AER. £1,000 minimum opening balance. Unlimited withdrawals.
0.80%1 YearMore Info >
A highly competitive rate of interest if you can lock your savings away for 1 year, with interest paid on maturity. Open to businesses with fewer than 250 employees and a turnover or assets of up to £45 million.
0.75%95 Day NoticeMore Info >
0.75% AER/gross. Withdrawals subject to 95 days notice. Minimum Deposit £10,000, maximum balance £5,000,000. Available to UK businesses.
0.70%6 MonthsMore Info >
A highly competitive rate of interest if you can lock your savings away for 6 months, with interest paid on maturity. Open to businesses with fewer than 250 employees and a turnover or assets of up to £45 million.
0.70%95 Day NoticeMore Info >
Earn a higher rate of interest if you don;t need immediate access to your savings, with interest paid monthly or annually. Open to businesses with fewer than 250 employees and a turnover or assets of up to £45 million.
0.55%Instant AccessMore Info >
Instant access account for - BUSINESS, CHARITIES, HOUSING ASSOCIATIONS, CLUBS & PARTNERSHIPS - Interest paid monthly or annually. Open to organisations with fewer than 250 employees and a turnover or assets of up to £45 million.