Best of the Week
Most Popular
1. TESLA! Cathy Wood ARK Funds Bubble BURSTS! - 12th May 21
2.Stock Market Entering Early Summer Correction Trend Forecast - 10th May 21
3.GOLD GDX, HUI Stocks - Will Paradise Turn into a Dystopia? - 11th May 21
4.Crypto Bubble Bursts! Nicehash Suspends Coinbase Withdrawals, Bitcoin, Ethereum Bear Market Begins - 16th May 21
5.Crypto Bubble BURSTS! BTC, ETH, XRP CRASH! NiceHash Seizes Funds on Account Halting ALL Withdrawals! - 19th May 21
6.Cathy Wood Ark Invest Funds Bubble BURSTS! ARKK, ARKG, Tesla Entering Severe Bear Market - 13th May 21
7.Stock Market - Should You Be In Cash Right Now? - 17th May 21
8.Gold to Benefit from Mounting US Debt Pile - 14th May 21
9.Coronavius Covid-19 in Italy in August 2019! - 13th May 21
10.How to Invest in HIGH RISK Tech Stocks for 2021 and Beyond - Part 2 of 2 - 18th May 21
Last 7 days
Junior Gold Miners: New Yearly Lows! Will We See a Further Drop? - 23rd Jul 21
Best Forex Strategy for Consistent Profits - 23rd Jul 21
Popular Forex Brokers That You Might Want to Check Out - 22nd Jul 21
Bitcoin Black Swan - Will Crypto Currencies Get Banned? - 22nd Jul 21
Bitcoin Price Enters Stage #4 Excess Phase Peak Breakdown – Where To Next? - 22nd Jul 21
Powell Gave Congress Dovish Signs. Will It Help Gold Price? - 22nd Jul 21
What’s Next For Gold Is Always About The US Dollar - 22nd Jul 21
URGENT! ALL Windows 10 Users Must Do this NOW! Windows Image Backup Before it is Too Late! - 22nd Jul 21
Bitcoin Price CRASH, How to SELL BTC at $40k! Real Analysis vs Shill Coin Pumper's and Clueless Newbs - 21st Jul 21
Emotional Stock Traders React To Recent Market Rotation – Are You Ready For What’s Next? - 21st Jul 21
Killing Driveway Weeds FAST with a Pressure Washer - 8 months Later - Did it work?- Block Paving Weeds - 21st Jul 21
Post-Covid Stimulus Payouts & The US Fed Push Global Investors Deeper Into US Value Bubble - 21st Jul 21
What is Social Trading - 21st Jul 21
Would Transparency Help Crypto? - 21st Jul 21
AI Predicts US Tech Stocks Price Valuations Three Years Ahead (ASVF) - 20th Jul 21
Gold Asks: Has Inflation Already Peaked? - 20th Jul 21
FREE PASS to Analysis and Trend forecasts of 50+ Global Markets by Elliott Wave International - 20th Jul 21
Nissan to Create 1000s of jobs with electric vehicle investment in UK - 20th Jul 21
Bitcoin Halvings Price Forecast and Stock to Flow Analysis - 18th Jul 21
Dell S3220DGF Unboxing and Stand Assembly - 32 Inch 165hz Curved Gaming Monitor Amazon Discount - 18th Jul 21
What Does The Fed Mean By “Transitory Inflation” And Why Is It Important To Understand? - 18th Jul 21
Will the US stock market’s worsening breadth matter? - 18th Jul 21
Bitcoin Halving's Price Projection Forecasts Trend Trajectory - 18th Jul 21
Dell S3220DGF Price CRASH to £305! 32 Inch 165hz Curved Gaming Monitor Amazon Bargain - 16th Jul 21
Google, Amazon and Netflix are Scrambling For This Rare Gas - 16th Jul 21
Sheffield Millhouses Park New Children's Play Area July 2021 Vs Old Play Area - Better or Worse? - 16th Jul 21
Inflation Soars, Powell Remains Unmoved. What about Gold? - 16th Jul 21
Goldrunner: Gold Could Jump To $1,900-$2,100 In Next 30 days – Here’s Why - 15th Jul 21
Tips For Finding The Right Influencers - 15th Jul 21
ECB Changed Monetary Strategy. Will It Alter Gold’s Course? - 15th Jul 21
NASA And Big Tech Are Facing Off Over This Rare Gas - 15th Jul 21
Will the U.S. Dollar Lose Momentum In the Second Half of 2021? - 15th Jul 21
Bitcoin Stock to Flow Model Forecasts Infinity and Beyond! - 14th Jul 21
Proteomics: The Next Truly Massive Investing Opportunity - 14th Jul 21
Massive Solar Storm to Hit Earth 2025, Coronal Mass Ejection (CME) Danger and Protection Solutions - 14th Jul 21
Is This The Best Way To Play The Coming Helium Boom? - 14th Jul 21
Meet SuperMania and its Ever-Present Sidekick, SuperMeltdown - 14th Jul 21
How NFTs Are Shaking Up Arts Trading - 14th Jul 21
Gold: High Time to Move Out of the Penthouse - 13th Jul 21
Climb Aboard! Silver Should Run Up To $38 In Next 30 Days - 13th Jul 21
How Will Remote Work Impact the U.K. economy? - 13th Jul 21
Why Helium Stocks Are Set To Soar in 2021 - 13th Jul 21

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


© 2005-2019 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