Running a successful company demands strong organisational skills, business acumen and a keen eye for finances, which is why it's so surprising that many business owners could be missing out on returns simply because they don't know what interest rate they're getting.
Analysis from Aldermore has uncovered the true cost of having "lazy money", with around £100bn thought to be languishing in poor-paying business current accounts – which could mean that business owners are missing out on £1bn in interest.
In fact, only a third of businesses said that they keep their surplus funds in a dedicated business savings account, but even then, they may not be getting decent returns, with the average rate these funds are receiving standing at a minuscule 0.6% – that's just 0.1% above base rate.
Much of this could be due to general apathy regarding business savings, and a clear lack of desire to research the market. Indeed, eight in 10 business owners have their savings account with their main bank and few shop around for a better deal, with 47% believing that the potential gains wouldn't be worth the effort.
This is perhaps why only 10% review their account every six months – and 18% admit they never do – while one in three respondents had no idea what interest rate they were actually receiving.
Given that businesses need income to thrive, it's disappointing to find that so few are concerned about the extra income they could receive from their surplus cash. Rather than a paltry 0.6%, businesses could actually be receiving up to 1.60% if they were willing to lock their excess funds away for a year, or even 1.80% if they opted for a notice account – all it could take is a quick glance at the best buy tables, and you need never worry about missing out on returns again.
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