Newly conducted research findings released recently report that at 99 per cent of all interviewed businesses, nearly every small business bank account holder in the UK is not satisfied with their current banking situation.
In a study released to the public last week, a startling 99 per cent of all respondents declared that they are terribly unhappy with their business savings accounts, mostly due to the poor rates attached to the accounts by their managing banking institutions.
According to data released by financial investment information providers Fair Investment Company, nearly 100 per cent of UK businesses are willing to shop around to different business banking providers to see if they can procure more favorable interest rates to help manage and grow their businesses, indicating that they are unhappy with their current banking arrangements and that a competitor’s financial products might be more attractive.
The Fair Investment Company study – which polled 85 different organisations in the UK – also found that in addition to being unsatisfied by their savings account options, many firms and companies may additionally have some qualms about their current accounts as well. Moreover the average interest rate paid on instant access accounts by banks to businesses was found to be approximately 0.52 per cent.
Fair Investment Company’s director, David Doulton, commented on the findings, indicating that even on savings accounts with higher yields, such as a three year fixed-rate bond that averages a return of just over 1 per cent, is just not an attractive choice for a vast majority of small and medium sized businesses looking for viable savings options.
In a related story, consumer advocacy group Consumer Focus recently reported that short term personal lending has increased exponentially by a rate of 400 per cent over the past few years in order to offset the effects of a still struggling economy and the heightened cost of living.