But it’s support for hard pressed SMEs doesn’t end there. Recognise has also promised to pass on the next Bank Base Rate increase in full to Business 95 Day Notice Account customers, no matter how much it rises.
Recognise says it is making the changes to ensure small businesses can still earn a decent rate of interest on the money they have set aside to help manage their business and cash flow needs.
Dean Carter, Group Treasurer of Recognise Bank, explained: “Business savers have traditionally been given the rough end of the stick by the big banks who pay very low interest rates. At Recognise Bank, we want to show our support for the UK’s small businesses by offering them interest rates you would usually only find in personal savings accounts.
“We also know that during the current challenging economic environment, businesses want certainty and security, which is why we have promised to pass on next week’s expected Bank Base Rate increase in full to our Business 95 Day Notice Account customers, no matter how much it rises.”
Recognise has a range of Business Savings Accounts to support the needs of SMEs. In addition to the Business 95 Day Notice Account, the Bank also offers SMEs a Business Easy Access Account which pays 2.00% AER.
Carter continued: “By offering decent rates on both our Business 95 Day Notice Account and Business Easy Access Account, we are giving SMEs more choice and control over how they manage their savings. They can put money aside in the Business 95 Day Notice Account for planned outgoings, such as VAT and tax bills, while keeping money at hand in the Business Easy Access Account for day-to-day spending or unexpected cashflow problems.”
All of Recognise Bank’s Business Savings Accounts are FSCS protected up to the maximum for £85,000. They have been designed to be quick to open and easy to manage online, with telephone customer service support if required. Savers also don’t need to have a current account or any other product with Recognise to be able to open a Savings Account.
Recognise Bank launched with a mission to support the UK’s SMEs with great lending and savings products. Smaller business savers often get a raw deal from the main banks who dominate business banking, so much so that research by Recognise* found that almost half of SMEs don’t bother saving and leave their cash in a current account earning no interest at all.
But building up a savings cushion is arguably more important than ever before to smaller businesses given the difficult trading conditions. The Bank’s research* also found that around a third of UK SMEs keep a cash surplus as an emergency fund or in case of late payments or other cashflow problems.
*Research was carried out amongst the financial decision makers of 500 SMEs with between 1 and 49 employees by 3Gem in November 2021