Business savings accounts
Nationwide’s new venture into the business savings market for SMEs
26 April 2012: Running your own business brings with it numerous pressures on your cash flows including frequent bills and payrolls. With so many things to consider, looking for that competitive business savings account and putting money away regularly can often seem a low priority. However, over the last few years with economic conditions remaining uncertain, business owners have become increasingly prudent when investing their money. Those that can are starting to hold onto more cash to increase their savings to meet future challenges and opportunities.
The business savings market is highly concentrated with the top five providers accounting for over 90% of the balances . This, coupled with the clear demand for business savings, is why we have entered the market with four new accounts for small and medium-sized business savers, two Business Saver accounts and two Corporate Saver accounts:
For businesses with an employee headcount of up to 250 and a maximum turnover of £45m
Account 1 – Instant Access: 1.30% gross p.a./AER variable. Minimum balance £10,000
Account 2 – 95 Day Notice: 1.60% gross p.a./AER variable. Minimum balance £10,000
For businesses with an employee headcount of up to 500 and a maximum turnover of £100m
- Account 3 – Instant Access: 1.00% gross p.a./AER variable. Minimum balance £100,000
- Account 4 – 95 Day Notice: 1.30% gross p.a./AER variable. Minimum balance £100,000
If your business is likely to need access to its cash quickly, the instant access option will be most appropriate. The 95-day notice account, which pays more interest, will be more suited to businesses that can wait a little while before accessing their cash. Some businesses operate both instant access and notice accounts for their money management.
We are the UK’s second largest savings provider and over 10 million people already trust us with their personal savings, so it is only natural that we now offer savings to businesses too. Our accounts are aimed at businesses looking to save to anticipate tax liabilities, fund anticipated growth and/or expansion, part/fully finance equipment and purchase of premises. Or the accounts can simply create a safety net for unforeseen expenditure – important in this economic environment.
We already have a strong pedigree in the commercial sector and are one of the UK’s main commercial lenders with customers including private property investors, institutional funds, PLCs and specialist property companies. Our move into business savings utilises the expertise we have acquired from working with businesses in the commercial lending sector and our 160 years experience in the personal savings market.
We want your feedback
We know some of our members are owners of small and medium enterprises (SMEs) themselves and we’ve always been interested in our members’ feedback, particularly for new products. So why not head over to our Talking Points page to ask questions such as why we’ve entered the business savings market or what types of businesses are eligible for these accounts. Or maybe you just want to let us know what you think of the new products and what you would like to see in the future.
- Business savings accounts are provided by Nationwide International Ltd, which is a wholly-owned subsidiary of Nationwide Building Society and a part of the Nationwide Group
- Application required. Further details of terms and conditions are available for Business Saver and Corporate Saver
- AER stands for Annual Equivalent Rate and illustrates what the interest would be if it were paid and compounded once each year