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Recognise Adds Two New Accounts to its Business Savings Range

SME Bank launches 95 Day Notice and 1 Year Fixed Rate Business Savings Accounts

Following the success of it first Business Savings Account, Recognise Bank has launched a new range of savings options for small businesses – a 95 Day Notice Business Savings Account paying 1.10% AER, and a 1 Year Fixed Rate Business Savings Account with an interest rate of 1.45% AER.

Recognise last week increased the rate on its original Business Easy Access Savings Account (Issue 1) to 0.90% AER. The SME Bank now has a variety of different FSCS protected business savings accounts, giving company owners an even wider choice of ways to maximise their interest income, depending on their cashflow needs.

Research* by the Bank ahead of the launch of its Easy Access Business Savings Account in April found that SMEs have an average cash surplus of £75,000. Recognise found that 30% of small firms keep their cash surplus as an emergency fund, 29% use it as a buffer in case of cashflow problems, while 23% save it for future investment into their business.

However, Recognise also found that nearly half (49%) of the SMEs surveyed left their cash surplus in a business current account, which usually pays no interest at all.

Historically, opening a business savings account with a provider other than that their main business bank has been a lengthy process for SMEs, as borne out by the 30% of firms surveyed who said ease of management was the most important factor when considering a business savings account. Recognise Bank’s Business Savings Accounts have been designed to be quick to open and simple to manage online, with dedicated telephone support.

Announcing the new accounts, Bryce Glover, CEO of Recognise Bank, said: “Rising prices are putting the squeeze on small firms, just as they are the rest of us, but many companies aren’t making the best use of their business savings. The big banks, who dominate the business banking sector, pay their customers paltry interest rates on their business savings, meaning SMEs are potentially missing out on hundreds or even thousands of pounds in interest.

“Now Recognise Bank is offering companies a choice of Business Savings Accounts, paying decent rates and giving them control over how they manage their cash surplus: 95 Day Notice and 1 Year Fixed Rate Business Savings Accounts if they are happy to leave their cash for longer in return for a higher rate, ideal for putting money aside for future bills or investments, or Easy Access if they want to be able to get hold of their cash in a right away.”

Recognise Bank was created to provide SMEs with digitally enabled, relationship-led banking, offering a range of unregulated lending options via a network of relationship managers across the UK. Despite only receiving its full authorisation in September 2021, Recognise has already achieved £100 million in lending. In September 2021 it launched a range of Personal Savings accounts, which has so far attracted £95 million in deposits, launching Business Savings accounts in April this year.

Product Summary

Account NameBusiness Easy Access Account95 Day Notice Business Savings
Account
1 Year Fixed Business Savings
Account
AER %0.90%1.10%1.45%
Gross PA %0.90%1.10%1.45%
Gross PM %0.90%1.10%1.45%
Can Recognise
change the
interest rate?
Yes – the account has variable
interest rate
Yes – the account has variable
interest rate
No – the rate is fixed for one year
How can the
account be
opened and
managed?
The account can be opened
online and managed using our
Online Secure System, with
support from telephone
The account can be opened
online and managed using our
Online Secure System, with support
from telephone
The account can be opened
online and managed using our
Online Secure System, with
support from telephone
Minimum Deposit£1,000£1,000£1,000
Maximum Balance£85,000£85,000£85,000
Can money be
withdrawn
Yes, with immediate accessYes, with 95 Day’s noticeNo, it can only be withdrawn on the
anniversary of the account opening

AER stands for Annual Equivalent Rate and illustrates what the interest rate would be if interest was paid and compounded once each year; Gross p.a. is the interest rate without tax deducted; Variable Rate means Recognise Bank can change the interest rate.

*Research was carried out amongst the financial decision makers of 500 SMEs with between 1 and 49 employees by 3Gem in November 2021.

Contact for media enquiries

Paul Beadle, Head of Communications, Recognise Bank

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