Businesses are missing out on over half a billion pounds each year by failing to look around for the best business deposit account, it has been claimed.
According to research from Alliance & Leicester, small businesses are currently losing out on £526m in interest by having a deposit account with the ‘big four’ banks, and they could save by looking elsewhere.
With the economic climate for the year ahead predicted to be uncertain, the need for cash is likely to be even more critical for businesses, the report claimed.
“It is clear from our research that companies are losing out on a huge amount of interest held in no notice business deposit accounts by failing to bank with the most competitive provider,” said Steve Jennings, director of business banking at Alliance & Leicester.
“Lost interest could equate to thousands of extra pounds a year which can make a significant difference, particularly for a small business, and could help them cover costs such as tax increases, late payments or even finance expansion plans.”
He also advised that businesses should regularly review their finances, in particular taking into consideration that the start of the year is the best time to ensure surplus funds were working as hard as possible.
Jennings
added: “A common misconception amongst businesses is that you have to hold a current account with a provider in order to get a great rate on deposit accounts.”
“Businesses often remain in uncompetitive deals, not realising that there are better value standalone business deposit accounts available to them,” he concluded.
© Crimson Business Ltd. 2008
