SMALL and medium-sized enterprises (SMEs) could be missing out on £473m in interest by not shopping around for a business deposit account, Cambridge & Counties Bank has claimed.
Analysis of Moneyfacts data by the lender found the average return available for business deposit accounts with a balance of £25,000 has declined to 0.41 per cent since the interest rate cut in August. This is a 38 per cent decrease over the past year.
The research shows one in three business deposit accounts now pays 0.1 per cent Interest or less on balances of £25,000.
Only seventeen providers are offering businesses an interest rate of more than 1 per cent on balances of £25,000.
Mike Kirsopp, chief executive at Cambridge & Counties Bank, said: “There is a significant spread of rates on the market so businesses have a great opportunity to shop around to get a better return on their deposits.
“It’s all too easy to stick with the same old bank but we’d urge SMEs to make it their New Year resolution to settle for more and take advantage of the higher rates that are available on the market.”