Aldermore challenges stingy high street savings rates
Sixty percent of small and medium-sized businesses in the UK are sitting on an average of £190,000 bank credit balances, yet are not satisfied with the savings rate or customer service they are receiving.
These figures come from a YouGov study of banking habits among 1,011 businesses by YouGov carried out on behalf of Aldermore, a three-year old bank that has positioned itself as a “challenger” to the big high street players.
Nine out of 10 survey respondents thought their interest rates are uncompetitive and 69% were not satisfied with their customer service. While 58% said they would switch for more competitive rates, 80% acknowledged that switching is complicated.
Aldermore, which already specialises in lending to SMEs, ran the research as preparation for its entry into the business savings market. The bank kicked off its savings push with a one-year fixed rate bond with 3.25% gross/AER and a six-month bond with 2.35% gross/AER. Both can be taken out in under 15 minutes online and are operational immediately.