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Business savers are being “overlooked” warns top Challenger Bank CEO

27/04/2020 09:00:00
Press release Our people Savings Loans
Business savers are being "forgotten and side-lined" amid the COVID-19 pandemic as research has revealed nearly half of business savings accounts are paying less than 0.35%.
Research carried out by Hertfordshire-based Redwood Bank has shown that since the Bank of England cut its base rate in March, some business deposit accounts have been pulled from the market and average rates have fallen.


Data collected on April 8 this year has also revealed that 82% of all business savings notice accounts are paying 1% or less on savings.

 

Only 9.3% of 100-day or less business savings notice accounts are paying more than 1% on balances of £10,000.

 

Gary Wilkinson, CEO and Co-Founder of Redwood Bank, said:

We’ve discovered there’s a huge disparity in interest rates currently being paid on different business savings accounts. We know there’s a lot of financial uncertainty at the moment, but there are still businesses out there looking to save. However, having looked at the current market, it seems they have been largely forgotten about and are being side-lined.

"It’s vital in these challenging times that we look after the struggling businesses and help them to protect their staff and services, but we must also ensure the thriving companies – and there are plenty of them out there – are rewarded and not overlooked."
 

Redwood Bank remains committed to business savers, which is why it is offering 1.55% Gross AER for its 95 Day Business Savings account, the highest rate of any business notice savings account with a notice period of under 100 days.

 

Interest rate paid

Percentage of 100 day or less business savings notice accounts paying this rate of interest on balances of £10,000 on 8th April 2020 (Source : Moneyfacts Group PLC)

0.1% or less
29.0%
Between 0.11% and 0.25%
18.0%
Between 0.26% and 0.5%
17.6%
Between 0.51% and 0.75%
13.1%
Between 0.76% and 1%
13.1%
Between 1.01% and 1.25%
6.5%
Between 1.26% and 1.5%
1.6%
Over 1.5%
1.2%
TOTAL
100%


Despite the worldwide disruption that COVID-19 has caused, Redwood Bank continues to be open for business, with all its staff working from home, as recommended by the government.
 

Being the first UK Business Challenger Bank to be completely ‘born in the cloud’ means that its robust systems and processes are enabling service continuity with no disruption to any of its customers.
 

There are no plans to furlough any of Redwood’s staff members, and the Bank is helping customers who are adversely impacted by COVID-19, on a daily basis.
 

For further information, visit www.redwoodbank.co.uk


 

Notes to editors 

For further details contact Laura Pearce at Strand PR on laura@strand-pr.co.uk or 01763 274674 / 07903 106405.

Data sourced from Moneyfacts Group PLC, 8TH April 2020

Redwood Bank was launched in August 2017, becoming Britain’s newest business bank for SMEs and completing its ‘mobilisation’ phase just over four months after securing its initial banking licence in April 2017. Redwood Bank offers secured SME mortgages for business owners, as well as for experienced commercial and residential property investors. It delivers fast and efficient mortgage decisions to help it’s business customers seize property opportunities and also offers competitive business savings accounts. Redwood Bank was founded by Jonathan Rowland and Gary Wilkinson. It has a unique private-public ownership structure in which Warrington Borough Council has a one-third stake.