Recently conducted research has discovered that nearly all firms have a high level of dissatisfaction with the rates on their business bank accounts. The research has also suggested that many organisations may begin to shop around on their business banking options sometime in the very near future.
The November 18 study that was was published by the Fair Investment Company found that an overwhelming percentage of firms across the UK are dissatisfied with their business savings account conditions.
Revealing that a staggering 99 per cent of companies polled were not happy, the study found that the average interest rate on a business savings product stands at a paltry 0.48 per cent. Industry experts blame the low rates on the aftereffects of the worldwide banking crisis and resultant economic downturn.
FIC savings head Julie Smith released a statement in conjunction with the published findings in which she commented that the figures were not surprising in the least. Ms Smith based her statements on the fact that one out of three business accounts currently available in Britain pay an interest rate of only 0.1 per cent.
In related news, new research recently conducted by specialist bank and asset management firm Investec found that due to such unattractive rates being so prevalent in the business savings market, 36 per cent of firms are not participating in any savings programmes at this time.
Many industry experts blame the high inflation rate as part of the problem; as the Consumer Price Index has been holding steady at about 3.1 per cent for several months, most businesses decline to put their money aside in a long-term savings account if the interest rate cannot keep up with the erosion caused by inflation.
This news comes on the heels of a recent announcement by private bank Cater Allen in regards to its launch of a new business bank account that has a 3 per cent gross annual equivalent rate attached to it.