Aldermore has increased rates across its fixed rate and customised fixed rate (CFRA) business savings accounts.
The specialist bank has also increased rates on its fixed rate cash Isas.
The rate increases across the business savings accounts include:
• one-year fixed rate – increase from 1.50% to 1.70%
• one-year CFRA – increase from 1.50% to 1.70%
• 18-month CFRA – increase from 1.52% to 1.80%
• two-year CFRA – increase from 1.55% to 1.95%
• three-year CFRA – increase from 1.65% to 2.05%
• four-year CFRA – increase from 1.85% to 2.10%
• five-year CFRA – increase from 2.00% to 2.25%
The increase in rates follows research from Aldermore which found that many self-employed/small businesses were holding inadequate amounts of cash savings.
The data showed that 19% of these businesses had no cash savings, while 46% held less than £1,000.
“Running a business comes with a whole host of challenges, so it is vital business owners make their surplus cash work harder for them,” said Ewan Edwards, head of savings at Aldermore.
“We encourage all business owners to shop around to find the best account on offer, as this can make a positive difference in the long term.”
Ewan added that many businesses did not succeed because they did not plan for unforeseen events or manage cash flow properly.
“Better business education and support could help many small businesses avoid trouble that often leads to difficulties.
“We want to work with the government to look at means of backing Britain’s entrepreneurs and helping them devise new policies and products that will encourage start-ups and protect growing small businesses from the shocks and uncertainties of self-employment.
“An entrepreneur Isa or small business savings allowance could support many businesses that face the ups and downs throughout the year.”
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