Hinckley & Rugby Building Society has launched its first savings account for businesses. The 30 Day Notice Business Deposit Account, available to firms located in Leicestershire or Warwickshire, pays an attractive two per cent interest.
The Society’s chief executive Chris White said: “Local businesses have been telling us that they can’t get a decent interest rate on balances in their bank accounts.
“With the economy continuing to struggle and Bank of England Base Rate set to stay at its record low 0.5% for some considerable time to come, making every pound work is more important than ever before for all businesses.
“We’re giving businesses in Leicestershire and Warwickshire somewhere to earn a decent return by depositing their money with a local institution they recognise and can trust.
“Often business bank accounts can be paying just a small fraction of a single per cent in interest – and many pay none at all.
“Our deposit account pays ten or even 20 times as much interest as many of the business accounts on the market,” he added.
The account is available to UK registered private limited companies and public limited companies with a registered or principal trading address in the LE or CV postcodes. Funds can be transferred back to the business bank account on request, and instructions given via a dedicated phone helpline.
The minimum initial deposit and balance is £25,000 and the maximum balance is £500,000. Interest, which is variable and currently two per cent gross/AER, is paid annually. Penalty-free withdrawals – minimum £1,000 – are subject to a 30-day notice period and are paid by electronic funds transfer direct to the nominated company bank account. Immediate access is subject to 30 days’ loss of interest on the amount withdrawn.
Chris White said: “We’ve built in flexibility for local businesses, whilst also giving them the security of having a familiar home for their money. And they will receive our award-winning levels of great customer service.”
