28th January 2014
Fledgling online bank Aldermore has launched a “customised” savings account aimed at businesses and sole traders, which is paying up to 3% writes Philip Scott.
The firm is targeting customers who need to plan ahead for outlays of wages, tax payments and investments at particular dates in the future.
The bank’s Customised Fixed Rate Account allows businesses and the self-employed to select the exact maturity dates and interest rates to suit their needs.
The term dates available range from 60 days to five years and savers can select an exact date when they can access the funds.
Alternatively, they can choose a specific rate ranging from 1.25% to 3% AER, and see the corresponding term for that rate. Aldermore is exploring options for a pure retail launch in the future.
Anna Bowes, director at Savings Champion and a Mindful Money contributor says the key advantage of this new account is the flexibility that it offers potential customers. She says: “The term can be selected to coincide with the needs of the business and the rate increases the longer you can leave it. The account is also less restrictive than many business accounts on the market at the moment, it is not limited to business in a particular local area and there is a low minimum balance.
“The rates are competitive, with only a few accounts paying higher on the key terms that are comparable, but as mentioned the rate is specific to the term chosen, so it is important to check out the tool on their website for exactly what rate you could be earning.”
The minimum accepted deposit is £1,000 with a maximum of £1m.