The Bank of Scotland has found that small businesses are saving some of their money rather than investing it back into the business.
Of the 1,000 small business owners surveyed by the Bank of Scotland over three quarters of them felt the uncertainty surrounding the economy at the moment meant it was best to save their money rather than investing it in the business. Over the coming year 38 percent of respondents planned to save their money to invest in the business later while 37 percent wanted to use it to earn interest.
Small business owners were also advised by the Bank of Scotland that its Total Business deposit account could help save them money, something that, by the sound of it, is very important to them.
The Halifax has just announced that the Web Saver Extra savings account it offers will have an increased rate of interest, up now to 6.35 percent gross.
The increased rate offer is applicable to all customers be they new or existing ones and it is valid on balances as little as GBP1, the minimum amount needed to open the account, up to GBP100,000. Halifax Web Saver Extra account holders are able to manage their savings online and are allowed one withdrawal each year without affecting their interest payment. Any subsequent withdrawals will see thirty days loss of interest on the value of the withdrawal.
This particular Halifax savings account has been very popular with customers enjoying an excellent rate of interest, payment of which is made annually and added to the account.
The Alliance and Leicester is passing on the Bank of England base rate cut to its customers by reducing the interest rate on most of the savings accounts it offers by the full 0.25 percent.
The changes by the Alliance and Leicester will come into effect on 2 May, with only a small number of accounts not having their interest rates cut. These will include the Premium Regular Saver, eSaver and their ISA products Premier ISA and Premier ISA 2.
One other Alliance and Leicester savings account, the Direct Saver, will have an interest rate cut of 0.23 percent rather than the full 0.25. Other financial institutions are expected to follow suit, looking at ways to improve their profitability and cash flow in these difficult times.
