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Businesses rely on savings deposits

Businesses rely on savings deposits

Category: Business

Updated: 25/07/2013
First Published: 25/07/2013

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

Figures released by the British Bankers' Association (BBA) have suggested businesses are favouring savings deposits to cover expenditure, rather than taking out credit.

Despite a slight increase in business borrowing levels during June this year, small and medium-sized enterprises (SMEs) were found to be continuingly relying on savings to fund their development and expansion needs in the current economic climate.

Whilst reports of growth in the UK economy may have helped to buoy the expectations and confidence of both consumers and businesses, a large number of cautious companies are still choosing to play safe by putting money aside in deposit accounts.

Savings accounts, in particular, notice accounts, such as the Bank of Cyprus UK 95 Day Notice account which pays a competitive rate of 1.76% AER, provide businesses with a secure home for their deposits, allowing access to funds as required by giving advance notice.

Fixed-rate business bonds also provide the reassurance of receiving a set rate for a period of time, even in the event of interest rates changing.

The Fixed Rate Business Savings Account - 1 Year from Aldermore currently pays a market-leading 2.00% to companies depositing between £1,000 and £1 million, subject to funds being tied up for the twelve month term.

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