SME startup Recognise Bank is enhancing the business savings market for SMEs by launching its new easy access account offering.
Customers will be afforded the chance to pay 0.55% when opening their account, aiming for more efficient business savings. Recognise Bank is opening its service to the UK, having found that UK SMEs could be missing out on “hundreds of pounds in potential interest”.
The bank believes this is derived from SMEs opting not to use a business savings account. Research carried out by the SME found that smaller businesses have an average of £75,000 in spare cash. 49% of this money, however, is stored in business current accounts, often paying no interest.
Bryce Glover, CEO of Recognise Bank, stated: “Most business current accounts pay no interest, and many of the big banks get away with offering their business customers very low interest rates on savings too.”
Recognise Bank was given the green light by the UK’s Prudential Regulation Authority in September to launch personal and business savings products to start taking deposits. The bank reached £100 million in lending recently, with £95 million worth of deposits coming via its various personal savings accounts.