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Businesses 99% unhappy with savings account rates

Businesses 99% unhappy with savings account rates

16 August 2010 / by Rachel Mason

- 99% of businesses unhappy with their savings rate

- Average instant access rate just 0.52%

- Get rates of up to 4.15% with Fair Investment Company

Businesses are wholeheartedly unhappy with the savings account rate being offered by their current provider.

According to a quick poll by Fair Investment Company, where 85 businesses were asked if they were happy with their firm's savings account rate, 98.8% answered 'no'.

Instant access business savings accounts are offering rates of just 0.52% on average, while three year fixed rate deals are not offering much more – just 1.05%, and David Doulton, director of Fair Investment Company, says with rates this poor, it's no surprise that satisfaction levels are so low.

"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.

"Although there is nothing we can do to make the rates go up, we can help businesses find the best rates available, which is why we have launched a business savings accounts comparison service," said David.

"We compare leading business savings accounts and can offer up to 4.15% on fixed rates and up to 2.19% on 3 month notice accounts - considerably better than the majority of rates on offer."

The 4.15% rate available through Fair Investment Company is The RBS Royal Deposit Plan 5. This is a three year fixed rate deposit plan that 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.

"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 service provides them with the much needed tools required to help them make more from their money."

Poll question: 'Are you happy with your business' savings account rate?'
85 businesses polled July -August 2010, answers: Yes (1), No (84)