Virgin Money has announced the launch of a new instant access business savings account for SMEs.
Customers can apply for the new product – which offers a rate of 0.6% – online, from any Virgin Money Store or through the post.
Businesses can save anything from £1,000 to £1m and accounts are available to UK-registered sole traders, partnerships, limited companies and limited liability partnerships which are classed as micro, small or medium enterprises.
The banking platform recently conducted a poll of 500 SME senior decision-makers and found that 42% had chosen to avoid savings accounts due to the poor rates on offer, while 29% did not want to tie up their cash.
A third of SME bosses (33%) also said managing their business finances was a necessary evil.
More than one in four of business account holders (28%) reported that they never checked the interest rates.
Hugh Chater, chief commercial officer at Virgin Money, said: “We know SME business leaders often have to juggle their many business priorities, while ensuring their finances are in order.
“For too long, these businesses have been short-changed with the savings accounts on offer.
“With lots of SMEs not having enough time to shop around for the best deals, many are getting a rough deal and that is why we are entering the market.
“We look forward to welcoming business customers on board ahead of our plans to launch a business current account by the end of 2018.”
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