The Bank passes on the full Bank of England Base Rate Rise to Support Under Pressure SMEs.
Recognise Bank has passed on the Bank of England’s 50bps interest rise in full to its Business Easy Access Savings customers in a move to help SMEs make the most of their cash during the current economic turmoil.
This means the Business Easy Access Account will now pay savers 2.00% AER. The account has become the Bank’s most popular business savings account since the range was launched in April 2022.
In addition, Recognise has increased the interest rate on its Business 95 Day Notice Account to 2.20% AER. The interest rate changes for both products apply to new and existing customers.
Recognise says the Business Easy Access Account is particularly helpful for SMEs wanting to keep cash at hand in case of trading difficulties. Research* carried out by the Bank found that around a third of UK SMEs keep a cash surplus as an emergency fund or in case of late payments or other cashflow problems.
It’s a tough time for many SMEs. At Recognise we want to do our bit by providing them with certainty around their business savings.
Dean Carter, Group Treasurer, Recognise Bank
Dean Carter, Group Treasurer of Recognise Bank, explained: “Our Business Easy Access Savings Account is a great way for SMEs to help build a cushion from the impact of cashflow issues, or just to earn interest on money they’ve put aside for future bills and payments. It offers a decent rate when they don’t need their savings, and quick access to their cash when they do.
“It’s a tough time for many SMEs. We know that inflation is impacting them in terms of their own expenses and energy costs, and the cost-of-living crisis is damaging the wider economy, with a knock on effect on customer footfall and sales. At Recognise we want to do our bit by providing them with certainty around their business savings.”
Recognise Bank’s Business Savings Accounts have been designed to be quick and easy to open and simple to manage online, with telephone customer support. This is important because Recognise found that almost half* of SMEs don’t bother saving and leave their cash in a current account earning no interest at all.
The accounts are also protected by the FSCS up to a maximum of £85,000, and savers don’t need a current account or any other product with Recognise Bank to be able to open a savings account.
*Research was carried out amongst the financial decision makers of 500 SMEs with between 1 and 49 employees by 3Gem in November 2021