A Challenger Bank has swiftly reacted to historically low interest rates that are "unfairly penalising" business savers.
As England begins its second week into lockdown, Redwood Bank has turned its attention to releasing new products, ensuring British businesses can make their savings work harder for them.
Gary Wilkinson, CEO and Co-Founder
The Bank has launched three new savings accounts, including a One Year Business Savings Bond at 1%, a 35 Day Business Savings Account at 0.70% and a 95 Day Business Savings Account at 0.95%, all of which feature in the best buy tables.
Future negative interest rates remain a concern and a possibility, despite the Bank of England pumping an extra £150bn into the economy. But despite this unprecedented, current low interest rate environment, Redwood expects its newly launched savings products will help businesses to make the most of the cash they have to save.
Gary Wilkinson, CEO and Co-Founder of Redwood Bank, said:
"We know that during the first lockdown UK savers put away more money than usual. According to the Bank of England, £116bn was paid into personal savings accounts in June 2020, but of this total, £2.5bn was paid into instant-access accounts that pay poor rates of interest, so we believe that savers generally, both personal and business, are being unfairly penalised.
"In a survey we commissioned in May, 63 per cent of business savers said they had not moved their savings as rates were so low it was not worth doing. So, we believe that due to such unrewarding rates savers are being unfairly penalised.
Redwood Bank has been, and always will be, about supporting British businesses, which is why we want to offer some stability during the chaos of COVID. Businesses are working hard, so why shouldn’t their money work hard for them in return?"
For further information, visit www.redwoodbank.co.uk.
Notes to editors
For further details contact Laura Pearce at Strand PR on [email protected] or 01763 274674 / 07903 106405.
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 their 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.
Redwood Bank commissioned Consumer Intelligence to interview 240 SME owners/senior executives/managers who have oversight of their company's/employer's cash savings. The interviews were conducted online between May 7 and 18, 2020.