Redwood Bank launches highly competitive business savings account

Redwood Bank has launched a fixed business savings account that offers one of the highest rates in the one year fixed savings chart.

The new 1 Year Business Savings Bond (Issue 3) pays 1.62% gross on anniversary or 1.61% gross monthly. The account requires a minimum deposit of £10,000 to open. Although it allows further additions within 14 days of opening the account, withdrawals are not permitted.

Commenting on the launch of this new savings account, Gary Wilkinson, CEO and co-founder of Redwood Bank, said: “As a business-focused bank, we work hard to reward our business savers and believe our 1.62% rate will do just that. Savings bonds are a good way to make your money work that little bit harder if you can afford to tie up your cash for 12 months.

“We believe this is a perfect time to launch our brand new, One Year Business Savings Bond. With customer satisfaction levels at more than 90%, we already know that our customers love what we do, so we’ve just given them another good reason to continue to invest with us.”

Masthaven Bank currently offers businesses the top one year fixed savings rate with its 1 Year Fixed Term Bond paying 1.71% gross on maturity. This account requires a minimum opening deposit of £5,000 and allows further additions within 7 days of opening but does not permit withdrawals. For business customers happy to lock their money into an account a little longer, Masthaven Bank offers a higher rate of 1.76% gross on its 18 Month Flexible Term Saver. This account pays interest on its anniversary and has the same terms and conditions as the one-year version.

United Trust Bank offers the only other one year business savings account available to sole traders that pays a higher rate than Redwood Bank’s new account. Its Business 1 Year Bond pays 1.65% gross on maturity. This account requires a minimum opening deposit of £5,000 but does not allow further additions or withdrawals.