Shawbrook Bank has today announced the launch of a new Business Savings Easy Access account as it begins the roll‐out of its enhanced SME savings proposition.
Business customers will now have a wider range of savings products to choose from and new applications will benefit from an improved rate on Shawbrook’s existing 100-day notice account. This revamped product offering has also been supported by the roll‐out of a new digitised service to help SMEs manage their money.
The new Business Easy Access account offers an interest rate of 1.05% and Shawbrook has also increased the rates on its existing 100‐day notice account to 1.51%.
The expansion of its savings portfolio follows new research from the Centre for Economics and Business Research (Cebr), conducted on behalf of Shawbrook Bank, which found SMEs are choosing to keep their cash close at hand rather than depositing it into accounts for the longer-term.
Of more than £300 billion that SMEs currently hold in cash, 57% sits in current accounts. Further still, 50% of UK SMEs expect the value of cash held in instant-access accounts to increase in the next 12 months, compared to 48% for fixed-term accounts and 45% for notice accounts.
However, the study also reveals that on average businesses only require ‘ready-access’ to 31% of their cash reserves, which suggests savings deposits could be increased to maximise interest returns.
Shawbrook’s new and improved customer journey will also make it easier for businesses to manage their money on a regular basis. For the first time all aspects of business customers’ account
and servicing needs will be digitalised, although SMEs will still have access to other support
and contact options.
As with Shawbrook’s current savings products, each new account will have Financial Services Compensation Scheme (FSCS) protection of up to £85,000 for businesses⁴.
For the new Business Easy Access account the minimum deposit to open an account will be £1,000 and the maximum balance on each account will be £1million. They will be made available to sole
traders, partnerships and limited companies based in the UK.
Julian Hynd, Chief Operating Officer at Shawbrook Banks comments: “Shawbrook has been focused on supporting UK SMEs with their funding and saving needs ever since its inception. But as customers’ needs change over time, it is hugely important that we continue to review and improve the products and services we offer to our business customers. These new developments represent a natural evolution of our savings proposition and show that we remain fully committed to being the UK’s leading, specialist business bank.
Hynd continues: “Predominantly small businesses receive little relationship management from their business current account providers and as such don’t use their surplus cash in a way that could earn them extra money but instead leave it in current accounts which can earn no interest.
Hynd concludes: “What we have found from our customers and from wider market research is that SMEs want more choice, more flexibility and better accessibility when it comes to savings. We have therefore created a proposition that tries to cater to those needs and removes the headaches or frustrations that businesses feel when it comes to managing their money. We hope customers find these enhancements not only make their lives easier but give them more time to focus on running and growing their business.”