One new financial services company has recently made waves as it announced a new enhancement to their business bank account offerings.
The new offer, involving new rates on its fixed-rate bonds from Principality Building Society, has been generating interest from savers looking for ways to maximise their savings.
In order to increase the attractiveness of the building society’s 12-month term bonds, Principality has decided to increase the interest rate on its Business Savings bond by one quarter of one per cent.
Principality will be making the package available to a wide variety of businesses, which will include limited companies; sole traders; registered charities; and partnerships. All firms are eligible, as long as the firm seeking to enroll in the high interest savings account meets Principality’s criteria.
Principality’s manager of business savings Nicola Crocker commented on the new fixed-rate offering by the financial services provider, stating that the decision to adjust the offering’s rates upward was made in order to demonstrate Principality’s commitment to remaining competitive in the business savings market, especially as many companies are being more cagey with their cash due to the current economic climate.
This newly enhanced savings offer comes shortly after banking giant HSBC recently released findings from a report regarding the savings behaviour of adults in Britain. The research indicated that three out of every ten working adults in the UK have very little in the way of savings; the average figure cited by the study was that of less than one average week of work in pay set up in some sort of savings scheme.
Additionally many savers have been reluctant to grow their savings at a time of high inflation, which erodes the effectiveness of the interest rates on many savings offerings in the UK, as their rates are easily outstripped by inflation.