Most Popular
1. It’s a New Macro, the Gold Market Knows It, But Dead Men Walking Do Not (yet)- Gary_Tanashian
2.Stock Market Presidential Election Cycle Seasonal Trend Analysis - Nadeem_Walayat
3. Bitcoin S&P Pattern - Nadeem_Walayat
4.Nvidia Blow Off Top - Flying High like the Phoenix too Close to the Sun - Nadeem_Walayat
4.U.S. financial market’s “Weimar phase” impact to your fiat and digital assets - Raymond_Matison
5. How to Profit from the Global Warming ClImate Change Mega Death Trend - Part1 - Nadeem_Walayat
7.Bitcoin Gravy Train Trend Forecast 2024 - - Nadeem_Walayat
8.The Bond Trade and Interest Rates - Nadeem_Walayat
9.It’s Easy to Scream Stocks Bubble! - Stephen_McBride
10.Fed’s Next Intertest Rate Move might not align with popular consensus - Richard_Mills
Last 7 days
US Presidential Election Year Stock Market Seasonal Trend - 29th Nov 24
Who controls the past controls the future: who controls the present controls the past - 29th Nov 24
Gold After Trump Wins - 29th Nov 24
The AI Stocks, Housing, Inflation and Bitcoin Crypto Mega-trends - 27th Nov 24
Gold Price Ahead of the Thanksgiving Weekend - 27th Nov 24
Bitcoin Gravy Train Trend Forecast to June 2025 - 24th Nov 24
Stocks, Bitcoin and Crypto Markets Breaking Bad on Donald Trump Pump - 21st Nov 24
Gold Price To Re-Test $2,700 - 21st Nov 24
Stock Market Sentiment Speaks: This Is My Strong Warning To You - 21st Nov 24
Financial Crisis 2025 - This is Going to Shock People! - 21st Nov 24
Dubai Deluge - AI Tech Stocks Earnings Correction Opportunities - 18th Nov 24
Why President Trump Has NO Real Power - Deep State Military Industrial Complex - 8th Nov 24
Social Grant Increases and Serge Belamant Amid South Africa's New Political Landscape - 8th Nov 24
Is Forex Worth It? - 8th Nov 24
Nvidia Numero Uno in Count Down to President Donald Pump Election Victory - 5th Nov 24
Trump or Harris - Who Wins US Presidential Election 2024 Forecast Prediction - 5th Nov 24
Stock Market Brief in Count Down to US Election Result 2024 - 3rd Nov 24
Gold Stocks’ Winter Rally 2024 - 3rd Nov 24
Why Countdown to U.S. Recession is Underway - 3rd Nov 24
Stock Market Trend Forecast to Jan 2025 - 2nd Nov 24
President Donald PUMP Forecast to Win US Presidential Election 2024 - 1st Nov 24
At These Levels, Buying Silver Is Like Getting It At $5 In 2003 - 28th Oct 24
Nvidia Numero Uno Selling Shovels in the AI Gold Rush - 28th Oct 24
The Future of Online Casinos - 28th Oct 24
Panic in the Air As Stock Market Correction Delivers Deep Opps in AI Tech Stocks - 27th Oct 24
Stocks, Bitcoin, Crypto's Counting Down to President Donald Pump! - 27th Oct 24
UK Budget 2024 - What to do Before 30th Oct - Pensions and ISA's - 27th Oct 24
7 Days of Crypto Opportunities Starts NOW - 27th Oct 24
The Power Law in Venture Capital: How Visionary Investors Like Yuri Milner Have Shaped the Future - 27th Oct 24
This Points To Significantly Higher Silver Prices - 27th Oct 24

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

SMEs set to benefit – business bank current account sector springs to life

Personal_Finance / SME May 09, 2007 - 11:09 AM GMT

By: MoneyFacts

Personal_Finance Lee Tillcock, Editor of Business Moneyfacts comments:“According to recent research by Standard Life Bank, British SMEs are missing out on just over a billion pounds a year by keeping their money in low-paying business current accounts, with 60 per cent unhappy with the level of interest they are paid.


“However the last few months have seen increased activity in the sector, with three of the so-called ‘challenger banks,’ Abbey, Alliance & Leicester Commercial Bank and Bank of Scotland, all recently announcing new offers.”

Alliance & Leicester New Account

Alliance & Leicester Commercial Bank’s (A&LCB) new Free Business Current Account is available to all businesses with an annual turnover of less than £1million. It offers 6.00% AER credit interest rate for balances up to £1,000, with a guarantee that customers will receive 0.60% above the Bank of England base rate until 30 June 2008. Balances above £1,000 will receive a fixed interest rate of 0.10% gross. The Free Business Current Account requires customers to credit their account with £1,000 per month or a £5 fee is charged for that month only.

Abbeys entices switchers

For those switching to Abbey, a six per cent interest rate awaits. The applicable tiered in-credit rate will be paid monthly on the whole balance, with the remainder of 6% gross p.a./AER (fixed) paid on balances up to £1,000 paid after 12 months. Customers must switch to an Abbey business bank account using their account transfer service and make transactions on their account each month.

Bank of Scotland sets a challenge

Bank of Scotland Business Banking is offering a slightly different proposition. For customers currently banking with Barclays, HSBC, Lloyds TSB or NatWest, with a turnover of £50K or more and who are on a published tariff, it guarantees to beat the existing overall package. If it can’t demonstrate that it will save you money over the next 12 months, it will give switchers £500. The offer is not available to those in Scotland.

Lee continues: “Reports by Cruickshank and the Competition Commission have seen levels of public concern increase regarding the lack of competition in the supply of business banking services. With the latest report from The Federation of Small Businesses (FSB) showing a declining market share of the big four, down from 83% in 2000 to 70%, is a positive sign that businesses are prepared to switch and that competitive deals are available outside the big four.

“But worryingly, the switching process seems flawed. Of those businesses that tried to switch providers, 45% said the experience was difficult and a further 20% failed to complete the switch. The successful running of an SME’s current account can be the lifeblood of a business: if errors occur creditors and wages may not be paid or debtors’ monies not received. The transfer process must be seamless to earn the trust of your new customer.

“It still remains the case that any small business looking for a new bank needs to weigh the price on offer against the level of service, but if the last few weeks are the beginning of a trend, then SMEs surely stand to benefit in the long term.”

By Lee Tillcock,
http://www.Moneyfacts.co.uk


© 2005-2022 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in