Alliance & Leicester launches Free Business Current Account

Alliance & Leicester Commercial Bank has further improved its offer to small businesses with the launch of a new Free Business Current Account.

The new Alliance & Leicester Commercial Bank Free Business Current Account is designed to provide market leading value to small business owners. It provides free and unlimited day-to-day banking with free standing orders, direct debits, ATM withdrawals and BACS and electronic payments, as well as free and unlimited cheque payments in and out of the account.

In addition, small business owners will be able to make £4,000 worth of free cash deposits each month – the highest amount in the market. Customers wishing to deposit more than this will pay just 35p per £100 deposited, the lowest rate in the market – on average a third less than any of the Big Four banks.

For companies with an annual turnover of less than £1million the Free Business Current Account offers a market leading 6.00% AER credit interest rate for balances up to £1,000, with Alliance & Leicester guaranteeing that customers will receive 0.60% above the Bank of England base rate until 30th June 2008. Balances above £1,000 will receive a fixed interest rate of 0.10% gross. The Free Business Current Account requires customers to credit their account with £1,000 per month or a £5 fee is charged for that month only.

Steve Jennings, Director of Business Banking at Alliance & Leicester Commercial Bank said: “The new Free Business Current Account offers an outstanding deal for UK SME businesses with market leading credit interest, together with the lowest fees on the market – and the account is the only one to offer free and unlimited day-to-day banking. Customers are also able to carry out transactions online, via the phone or at any Post Office, giving our customers access to more outlets than any other bank. Research carried last year by the bank found that in total, small businesses in the UK are missing out on over £500 million a year by not shopping around for the best account for their business and our new account highlights the great value that is available to small business owners.”

Commenting on the new account, Lee Tillcock, Editor of leading independent finance guide, Business Moneyfacts said: “The business banking market has become as competitive as the personal banking market over the last five years and I would encourage business owners to shop around, as there are some fantastic value current accounts now available. Alliance & Leicester Commercial Bank has been named best business current account provider by our magazine for the last five years, which is unprecedented. This new account should prove to be very popular and clearly demonstrates the bank’s commitment to the small business market.”

Alliance & Leicester Commercial Bank also makes it easy for business owners to calculate how much their business could save. Businesses can visit www.businessbankchallenge.co.uk, type in the average monthly transactions and details of who they currently bank with and the website will calculate how much they could save per month by switching. The bank has also recently automated the application process, so that small business owners can apply online or over the phone reducing greatly the amount of time it takes to open an account.

For further information on the Free Business Current Account, small business owners should visit alliance-leicestercommercialbank.co.uk.