This is a guest post provided by Aldermore Bank, the retail bank that provides services to small and medium sized businesses.
Monitoring finances is a priority for every business, yet a recent study from Aldermore found that businesses are missing out on hundreds of pounds each year by letting ‘lazy money’ stand idle in their current accounts.
Shockingly, the research found that a third (34%) of businesses have no idea what interest rate they receive on their surplus funds. 42% of businesses that do know receive between 0-0.5% interest, while 14% of these are receiving absolutely nothing. The fact is that businesses aren’t making their lazy money work hard enough.
This is a huge missed opportunity.
Where are businesses saving?
Over 81% of businesses keep their savings account with the same provider as their business current account, where it’s earning pitiful returns, while 34% keep lazy money in their business current account. What they should do is switch, but over half feel shopping around isn’t worth the effort. Instead, they’re choosing convenience over reward.
What should businesses do?
Your surplus cash could be earning a much better return, but how do you know where to put it? The Business Savings Rate Checker from Aldermore compares business current accounts and saving products from over 90 banks and saving providers – all in a matter of seconds. You can see what rate you’re currently receiving and the interest you’ll be paid after 12 months.
How to get your lazy money working harder
Switching bank accounts isn’t hard work either, as most banks will do whatever they can to make your switch easier. Just get in touch and ask to make sure you’re turning your lazy money into easy money.
Commenting on the research, Simon Healy, Managing Director of Savings at Aldermore said:
“Business savings play an important role in covering unexpected bills, future investment and general cash flow. It is therefore important businesses make the most of their money and shop around for the best rate. While it is understandable that businesses prefer to keep their surplus funds with the same provider as their business current account, in reality they are not making the most of their hard earned money.”
Find out more by checking out Aldermore’s infographic on the savings habits of small business owners, below.