Recognise Bank has announced its entry into the business savings market with the launch of a new easy access savings account.

The challenger bank warned that SMEs could be missing out on “hundreds of pounds in potential interest income” by not using a business savings account, instead leaving their cash in business current accounts that don’t pay any interest.

Research carried out by Recognise found that the average cash surplus balance among SMEs is £75,000. However, around half (49%) of the firms surveyed left their cash surplus in a business current account – which usually pay no interest at all – while just under one in five SMEs (18%) used a business savings account offered by their main business bank account provider.

Recognise is one of the UK’s newest banks and entered the personal savings market in September 2021. The bank’s latest launch, its business easy access account, pays 0.55% AER, is FSCS protected, doesn’t require the saver to have a current account with Recognise, and can be opened and managed online via the the bank’s website.

Announcing the new account, Recognise Bank CEO, Bryce Glover, said: “Many of the big banks, who dominate the business banking sector, pay their business customers very low interest rates on business savings accounts. Because SMEs don’t tend to shop around for better rates, the banks that pay low interest rates have had their business customers – and their cash – over a barrel.

“This has to change, especially during these economically challenging times where any extra interest income could help companies with some of their spiralling costs. Business owners need to shop around for better rates on their business savings, which is why we have launched our new account.”

He added: “We’ve made it straightforward for SMEs to access their cash immediately and earn a decent interest rate.”

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