Barclays launches small business current account with rewards for loyalty

New account is first and only to pay bank charges back based on the period it remains in use and the sums invested

Barclays Business has announced a current account which rewards its small and medium-sized business customers by enabling them to gain bank charges back.

Small businesses are typically charged for making and receiving cash payments, electronic payments, cheques or assisted payments, as well as a monthly fee.

The longer customers bank with Barclays after opening a new business current account and the more deposits they make, the greater the loyalty rewards they gain via returned bank charges.

A business with an annual turnover of £100,000 to £249,999 invested in the account for up to five years will receive 10% of bank charges back and 15% back if invested in the account for up to 15 years.

Rewards rise to up to 50% for companies banking turnovers of £2m or more for over 15 years. Businesses with an annual turnover of less than £5m can apply for the account.

Customers can select from one of two price plans, depending on their business type, which Barclays claims will ensure companies will always know how much they have to pay.

Businesses that use cash, cheques or a variety of ways to make and receive payments are catered for with the Mixed Payments Plan, while those that receive electronic payments and carry out their banking via online banking and debit cards can opt for the e-Payments Plan.

The e-Payments Plan carries no charge for electronic payments, but charges more than the Mixed Payments Plan for cash or cheque payments in or out, as well as £6.50 for the monthly fee against £6 under the Mixed plan.

As part of the service, Barclays will also provide a named contact responsible for dealing with queries and a yearly price plan review to ensure to ensure its clients have the most suitable account.

Start-ups continue to receive free banking for their first 18 months in business. Existing Barclays customers have the option to switch to the new current account at any time or as part of their annual review.

The announcement follows a raft of small business initiatives, including the bank’s online community Barclays Connector, mobile payments service Pingit, and credit checking product CreditFocus.

Managing director of Barclays Business, Sue Hayes commented:   “Barclays is the first and only bank to reward small businesses for their loyalty, ensuring that in the same way small and medium enterprises reward customer loyalty, their bank does too.

“It’s our way of showing our appreciation to business customers for choosing to bank with us, and we look forward to supporting them and their business in the years to come.”

Find out more about the account here.

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