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New research suggests that small to medium-sized enterprises (SMEs) regularly switch bank accounts in order to cut costs.
A study by the Federation of Small Businesses claims that many start-up businesses are willing to switch accounts on a regular basis in order to get the best deal, reports Moneyfacts.
It is thought that growing competition for the big four banks from smaller entities is ensuring that there is healthy competition in the sector, meaning there are some attractive deals around to aid tax planning.
Lee Tillcock, the editor of business at Moneyfacts, commented: "According to recent research by Standard Life Bank, British SMEs are missing out on just over a billion pounds a year by keeping their money in low-paying business current accounts, with 60 per cent unhappy with the level of interest they are paid.
"However the last few months have seen increased activity in the sector, with three of the so-called challenger banks, Abbey, Alliance & Leicester Commercial Bank and Bank of Scotland, all recently announcing new offers."
He added that 45 per cent of businesses that attempt to switch providers claimed that the process was difficult, suggesting that there is still room for improvement within the sector.
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