Business owners 'raid savings accounts'

Business owners 'raid savings accounts'
Date of Publication: Tuesday, 30 March 2010 00:00

A fifth of small business owners raided their savings accounts last year to keep their company going as the financial crisis wore on.

Billions of pounds have been drained out of entrepreneurs' personal savings accounts in an effort to keep their organisation afloat.

While the financial downturn continued to make its presence felt in 2009, Hiscox reveals that one in five owners of small and medium-sized enterprises (SMEs) chose to sustain their organisation with their own money.

And with an average of £17,030 being withdrawn, the insurance provider notes that a total of £16 billion was raided over the course of 2009.

As part of efforts to boost business accounts, a tenth of entrepreneurs questioned reduced the wages of their senior staff, although 34 per cent opted to cut their own pay.

One out of three put in extra hours, with 36 per cent of those questioned concentrating on securing relationships with existing clients.

While such efforts may have sustained their organisation, it may have come at a cost. Some 13 per cent of respondents state that their marriage has suffered, while 24 per cent have struggled to sleep due to concerns about their business.

But with the country starting to show signs of economic recovery, one in four business owners claim they will look to expand their organisation over the course of this year.

Commenting on the figures, Alan Thomas, small business expert at Hiscox, states: "SME bosses have been the unsung heroes of the recession. They have made enormous sacrifices and taken significant personal and financial risks to pull their businesses through the last two years. Their positive outlook for the year ahead is testament to the resilience of UK entrepreneurs and with 25 per cent planning to expand in 2010, they are doing their bit to help lead the UK's recovery."

And there may be a further boost for the UK accounts of entrepreneurs as British Chambers of Commerce director general David Frost claimed that businesses were placed "at the heart" of last week's Budget.

By Kate GuthrieADNFCR-2079-ID-19697555-ADNFCR
Tuesday, 30 March 2010 00:00
Bookmark and Share

Make a comment on this article

Comment
Please enter the following letters in the box below.
We're very sorry for this but we just need to ensure
that you are not a computer.

Top Business Credit Cards

Card
Balance Transfers
Purchases
Typical APR (variable)
Apply
View Full Table >
No Products Currently Listed

Top Business Accounts

Provider
Account
AER
Free Banking Duration
Interest Paid
Apply
View Full Table >
18 months FREE business banking
0%
for 18 months
N/A
Move your existing Account & Get 6 months FREE banking (terms and conditions apply). Smooth move guaranteed.
0%
for 6 months
N/A
No credit checks or interview required - Apply instantly online in minutes. £49 per year – No charge for depositing cash, receiving bank transfers or for setting up Direct Debits
N/A
for N/A
N/A
No Credit Check basic bank account – **NO OPENING FEE** Open to everyone 18+ & UK resident. £12.50 per month. Create Standing Orders & Direct Debits! Charge for 'depositing' money to account, either as cash or transfer.
N/A
for N/A
N/A

Lloyds Bank New Business Start up Account

Lloyds Bank
  • 18 months free day-to-day banking.
  • Support from a Business Management Team
  • During the first 18 months you will not be charged for:
  • - Paying in or taking out cash
  • - Paying in or issuing cheques
  • - Paying standing orders and direct debits
  • There is no limit on the number of deposits or withdrawals, and you do not need to keep a minimum balance in your account to qualify.
  • When your free banking period ends choose either 'Business Extra Tariff' or 'Electronic Business Tariff'.
  • Get a 30-day free trial of our Business Toolbox: a suite of useful online tools to help you start, manage, and grow your business

Lloyds Bank Established Business Switch A/C

Lloyds Bank
  • Interest free overdraft of up to £5,000 while moving
  • During the first 6 months you will not be charged for (terms and conditions apply):
  • - Paying in or taking out cash
  • - Paying in or issuing cheques
  • - Paying standing orders and direct debits
  • There is no limit on the number of deposits or withdrawals, and you do not need to keep a minimum balance in your account to qualify.
  • When your free banking period ends choose either 'Business Extra Tariff' or 'Electronic Business Tariff'.

Cashplus Business Current Account

CashPlus
  • Instant online application process
  • No paper forms or interview required
  • No credit check required to open an account
  • The low cost alternative to High Street Banks:
  • - Free to deposit cash at the Post Office
  • - Free to set up Direct Debits
  • - Free inbound bank transfers
  • - 3 Free outbound bank transfers per month - £0.99 per transfer thereafter
  • Comes with MasterCard Debit Card – no card transaction charges
  • Fees: £49 per year & £2 per ATM withdrawal
  • No hidden fees
  • No introductory free period – just constantly low pricing

CardOne Banking Guaranteed Business Account

  • CardOneBanking offers the following:
  • Guaranteed Acceptance
  • Sortcode & Account Number
  • Pay money in at any Post Office or Barclays Branch
  • Create Standing Orders and Direct Debits with this account.
  • 24 hour account management by Phone, Text and Online Banking
  • Dedicated Account Manager
  • £55 OPENING FEE
  • NO OVERDRAFT FACILITY – No risk of going overdrawn
  • NO CREDIT CHECKS! – Guaranteed to be accepted, regardless of your past credit
  • YOU must be 18+ and UK resident
  • £12.50 monthly management fee
  • Charges to transfer or deposit funds:
  • £5 to £249 = £5
  • £250 to £499 = £8
  • £500 to £749 = £13
  • £750 to £999 = £20
  • £1000+ = £30

Top 5 Savings Accounts

Provider
AER
Notice
Interest Paid
Min Bal
Apply
View Full Table >
1.00%
Instant
Annually
£1,000
1.20%
Instant
Monthly
£1,000
1.00%
Instant
Monthly
£1,000
1.25%
30 Days
Monthly
£1,000
1.50%
Fixed term for 1 year
Monthly
£1,000

Scottish Widows Direct Transfer Account

Scottish Widows
  • Minimum balance £1000
  • Deposits can be made by internet banking, telephone or post
  • No notice period or penalties for withdrawals
  • YOUR SAVINGS ARE PROTECTED UP TO £85,000 PER PERSON BY THE FSCS - Financial Services Compensation Scheme

Sainsburys Extra Saver

Sainsbury's
  • 1.20% AER/gross pa (variable)
  • Great, non-bonus rate
  • Save between £1,000 - £100,000
  • Open your savings account in minutes
  • Interest paid annually
  • Make payments into your savings account online or with SaveBack in store
  • Manage your account whenever you want, 24 hours a day, 365 days a year
  • Unlimited withdrawals with no notice period
  • YOUR SAVINGS ARE PROTECTED UP TO £85,000 PER PERSON BY THE FSCS - Financial Services Compensation Scheme

Aldermore Easy Access Saver

Aldermore
  • Transparent - our competitive rates are not artificially inflated by bonuses or introductory offers
  • Fast and easy setup - open an account, complete identity checks and move your money in minutes
  • Accessible - open an account with just £1,000
  • Flexible - add to your savings whenever you like
  • Unlimited withdrawals - access your money whenever you need it, without restriction or loss of interest
  • Easy to manage - do it online, by phone or by post
  • YOUR SAVINGS ARE PROTECTED UP TO £85,000 PER PERSON BY THE FSCS - Financial Services Compensation Scheme

Aldermore 30 Day Notice Account

Aldermore
  • Transparent - our competitive rates are not artificially inflated by bonuses or introductory offers
  • Fast and easy setup - open an account, complete identity checks and move your money in minutes
  • Accessible - open an account with just £1
  • Flexible - add to your savings whenever you want
  • Access - unlimited withdrawals, subject to notice and without loss of interest
  • Easy to manage - do it online, by phone or by post
  • YOUR SAVINGS ARE PROTECTED UP TO £85,000 PER PERSON BY THE FSCS - Financial Services Compensation Scheme

Aldermore 1 Year Fixed Rate ISA

Aldermore
  • Transparent - our competitive rates are not artificially inflated by bonuses or introductory offers
  • Fast and easy setup - open an account, complete identity checks and move your money in minutes
  • Accessible - open an account with just £1,000
  • Flexible - add to your savings whenever you like
  • Unlimited withdrawals - access your money whenever you need it, without restriction or loss of interest
  • Easy to manage - do it online, by phone or by post
  • YOUR SAVINGS ARE PROTECTED UP TO £85,000 PER PERSON BY THE FSCS - Financial Services Compensation Scheme

Manchester Building Society Platinum 60 Day Notice (Issue 5)

  • Get up 1.15% AER/gross on on balances over £10,000 up to £75k.
  • 60 day notice on withdrawals
  • Interest Rates (AERs) - The interest rate is variable and will be altered at the Society's discretion.
  • Interest is calculated daily and paid annually on 31st October.
  • Tax Status - Interest will be paid gross or net of tax**, depending on your status.
  • Conditions for Bonus payments - Not Applicable
  • Withdrawal Arrangements - Withdrawals are available by providing 60 days notice. Up to 6 withdrawals are available in each calendar year.
  • Access - Post, Branch or Agency.

RBS Instant Saver

RBS
  • Balances from £1 receive a rate of 0.50% AER / 0.50%Gross p.a. (variable) rising to 0.75% AER / 0.75%Gross p.a. (variable) for balances of £25,000 or more.
  • Quarterly interest paid directly into your account.
  • Access your money in branch, over the phone
  • No penalties and no withdrawal charges
  • Easy to manage with our online banking service and our mobile banking apps.
  • YOUR SAVINGS ARE PROTECTED UP TO £85,000 PER PERSON BY THE FSCS - Financial Services Compensation Scheme

Natwest Instant Saver

NatWest
  • Balances from £1 receive a rate of 0.50% AER / 0.50%Gross p.a. (variable) rising to 0.75% AER / 0.75%Gross p.a. (variable) for balances of £25,000 or more.
  • Quarterly interest paid directly into your account.
  • Access your money in branch, over the phone
  • No penalties and no withdrawal charges
  • Easy to manage with our online banking service and our mobile banking apps.
  • YOUR SAVINGS ARE PROTECTED UP TO £85,000 PER PERSON BY THE FSCS - Financial Services Compensation Scheme

SBI UK Easy Access Savings Account

  • Minimum deposit amount of £500
  • Interest paid on balances above £500 and below £1,000,000
  • Account managed online or by visiting our branch
  • Interest paid on a monthly basis
  • Debit card provided only to the primary account holder if requested
  • Available to an individual, 18 years or over, who is ordinarily resident in the UK for tax purposes and has a permanent UK address
  • YOUR SAVINGS ARE PROTECTED UP TO £85,000 PER PERSON BY THE FSCS - Financial Services Compensation Scheme

Manchester Building Society Platinum 45 Day Notice (Issue 5)

  • Get 1.51% AER/gross on balances between £1,000 and £75,000.
  • Withdrawals are permitted at 45-day notice.
  • Interest is calculated daily and will be paid annually.
  • The interest rate is variable and is subject to change.
  • Tax status: interest will be paid gross or net of tax**, depending on your status.
  • The product does not include any introductory bonuses.
  • Access is available by post, by branch or by agency.