UK inflation has hit a new 40-year high of 10.1% in August – prices are expected to continue to rise for some time to come. There is one important silver lining for UK businesses. Business Savings opportunities have dramatically increased.
In the current climate, a proactive approach to business savings is a key strategic tool in helping businesses to minimise the adverse effects of inflation and support sustained growth.
This involves spreading cash reserves across a range of different accounts, to diversify risk as well as benefit from the varying interest rates offered from one Bank to another. Benefits include:
- Earn a new revenue stream from the additional interest earned. This extra income can be used to fund the increase in energy costs or reinvested into the business to support growth.
- Reduce risk via diversifying funds into a range of accounts, allowing businesses to benefit from increased FSCS protection eligibility. Holding all excess cash in one bank account opens the business up to a high level of dependency on one institution.
- Make the most of rising interest rates, as the Bank of England continues to increase the base rate. We have seen a 150% increase in some of our best rates in just the past six months.
- Capitalise on capital injections, after a funding round or investment, utilise cash both short and long-term, drawing down on cash deposits when required to ensure current and future liquidity needs are met, whilst earning increased interest.
- Get paid for tax planning, instead of leaving £100,000 needed for corporation tax in six months’ time languishing in a business current account, place these in a high-interest earning account and it could be earning 3.45% more interest a year.
Although the benefits are clear, constantly tracking the current interest rates and opening new accounts is too time-consuming and manual. This is where Insignis Cash Solutions can help. By seamlessly opening a single Insignis Cash Solutions account, businesses will efficiently gain access to savings products from 37 different Banks and Building Societies, taking away the need for multiple, lengthy application processes and ongoing management of these accounts. On the Insignis Cash Solution platform, businesses are able to compare products on offer quickly and easily to ensure they find accounts that meet their requirements.
Check out our current top rates for Business Savers:
Insignis is an award-winning platform that uses innovative technology to help businesses take back control of their cash savings. To find out how Insignis could help your business, request an illustration today or book a demonstration of our platform.