Investec increases rate on its 32 day notice business savings account
Investec has increased the interest rate on its 32-Day Business Notice Account from 0.55% to 0.65% AER, further strengthening its position as one of the most competitive business savings accounts in the market.
Investec’s 32-Day Business Notice account is a simple, straightforward online account offering unlimited withdrawals with no hidden fees or charges requiring only 32 days’ notice from customers. It now pays an interest rate of 0.65% AER on balances between £40,000 and £800,000.
New analysis of SME business notice accounts commissioned by Investec showed that more than half paid rates of 0.25% or less, despite some asking companies to lock their money away for as much as 100 days.
The analysis showed that out of 53 notice accounts available, just nine paid rates of 0.5% or more. For many of the highest rates, SMEs are required to give notice of 90 days or more to withdraw their cash.
Businesses that wanted to withdraw cash within 30 days or less were only offered a top rate of 0.25%, the analysis by personal finance researcher Andrew Hagger of Moneycomms shows.
The analysis found 13 business notice accounts paid 0.1% or less while another 16 paid between 0.11% and 0.25%.
Samantha Booysen, head of digital savings at Investec, said: “We are committed to offering businesses one of the best cash savings products available, which includes not just a fair rate, but also a clear product with unlimited withdrawals and no hidden fees or charges. Today’s increase in our interest rate is another example of our commitment to providing a great offering to our savers.”
“Many SMEs will have built up substantial cash deposits during the Covid-19 crisis and will want to be earning the most competitive rate on their savings. That should apply particularly to deposits in notice accounts where the rate is generally expected to be higher because customers do not have instant access to their money.
“SMEs should review the rates they are receiving from their business savings accounts and, where possible, move to a better deal.”
Andrew Hagger, from Moneycomms.co.uk, said: “Some business customers will find themselves with substantial credit balances sitting in their current account for some periods during the year, earning them absolutely nothing.”
“Understandably many SMEs are reluctant to lock their surplus funds away in a bond for an extended period of 1 year plus, but an account with a short notice period can deliver a decent interest return while giving the business owner the flexibility to access the money at reasonably short notice when needed.”