Investec increases the rate on its 32 day business notice account
Investec has increased the interest rate on its 32-Day Business Notice Account from 0.65% to 0.75% AER, moving it to the top of the best-buy table for notice business deposit accounts with a similar term, and joint first place when comparing across all notice periods. It also has the lowest notice period of the 24 most competitive notice business deposit accounts available.
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 0.75% AER on balances between £40,000 and £800,000.
New analysis of SME business notice savings accounts commissioned by Investec shows that 25% pay less than 0.1% AER, and 29% only pay between 0.11% AER and 0.25% AER. Only 15% pay more than 0.51% AER, and just six accounts pay 0.70% AER or more.
Of the top 10 notice business deposit accounts, one has a notice period of 100 days, five have notice periods of 95 days, three have 90 days, whilst Investec’s is only 32 days.
The analysis found there are currently 13 notice business deposit accounts with notice periods of 32 days or less, and after Investec’s the most competitive interest rate is 0.25% AER.
Samantha Booysen, head of digital savings at Investec, said: “This interest rate rise for our 32-Day Business Notice Account further cements its position at the top of the best buy-table. However, in addition to offering a competitive rate, we also ensure that we have a clear and transparent product with unlimited withdrawals and no hidden fees or charges.
“Many SMEs are sitting on large cash deposits and will want to ensure that they are earning a competitive rate on this. Our research shows a huge variance in the range of interest rates paid by deposit accounts, so it really does pay businesses to shop around and secure the best return possible for their cash deposits.”
Commenting on Investec’s 32 Day Notice Business Savings Account interest rate rise, Andrew Hagger, from Moneycomms.co.uk, said: “Savings interest rates for businesses continue to improve, with a handful of best buy notice accounts paying 0.50% or more to choose from.
Many businesses have large credit balances stagnating in current accounts paying zero interest, and could make a decent return for little effort as most business savings can be managed via a few clicks online.
A notice account gives you the freedom to manage your cashflow while generating some interest income if used smartly in conjunction with the company current account.
“The combination of a decent rate and a shorter notice period will be the preferred option for many.”