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Digital SME banking startup Recognise Bank has entered the business savings market with the launch of a new easy access account paying 0.55%.
The Bank says that UK SMEs could be missing out on hundreds of pounds in potential interest by not using business savings accounts. Research by Recognise found that small firms have an average of £75,000 in spare cash, but nearly half of them (49%) store this money in business current accounts usually paying zero interest.
Bryce Glover, CEO of Recognise Bank, comments: “Most business current accounts pay no interest and many of the big banks get away with offering their business customers very low interest rates on savings too.”
A subsidiary of City of London Group, Recognise Bank was given the green light by the UK’s Prudential Regulation Authority in September to launch personal and business savings products and to start taking deposits.
The lifting of restrictions followed the completion of a £14 million capital raise in August for the City of London Group subsidiary.
The Bank recently hit a milestone of £100 million in lending and £95 million in deposits through its range of personal savings accounts.
Financial Services
