Virgin Money launches instant access business savings account

Virgin's first foray into small business banking is influenced by new data that finds 42% of firms are avoiding savings accounts due to poor rates on offer

Virgin Money has launched an instant access business savings account.

The corporate giant says its first foray into small business banking is influenced by new data that finds start-ups and small businesses are currently shunning savings accounts due to the current interest rates available.

Of the 500 businesses surveyed, 42% of respondents said they are avoiding opening a savings account due to poor rates on offer, while 29% don’t want to tie their cash up.

A third (33%) say managing their business finances is a necessary evil, while a quarter of respondents (24%) said they prioritise it when they would often rather be working on something else within the business.

As a result, it is not surprising that more than one in four (28%) of those with any type of business account say that they never check the interest.

Account applications are available online, from any Virgin Money Store or through the post, and accounts can be serviced online, through contact centres and Stores.

Hugh Chater, chief commercial officer at Virgin Money, said:

“We know small business leaders often have to juggle their many business priorities while ensuring their finances are in order. For too long, these businesses have been short-changed with the savings accounts on offer.

“With lots of small businesses not having enough time to shop around for the best deals, many are getting a rough deal and that is why we are entering the market. We look forward to welcoming business customers on board ahead of our plans to launch a Business Current Account by the end of 2018.”