Alliance & Leicester Commercial launches new deposit accounts

New research from Alliance & Leicester Commercial Bank reveals UK businesses are no strangers to saving, with nearly half (45%) putting money aside in a deposit account. To help firms make the most of their funds, Alliance & Leicester Commercial Bank today announces the launch of a suite of three new deposit accounts offering competitive terms to suit a range of business requirements.

The Base Rate Beater is a market leading instant access deposit account which guarantees better than Bank of England base rate earnings on the entire balance. It offers Bank of England base rate +0.30% (currently 5.30% gross, 5.43% AER) on balances between £500,000 and £5 million, with the part of the balance below £500,000 receiving Bank of England base rate +0.05% (currently 5.05% gross, 5.17% AER). It can be opened with sums from £200,000 and there is a maximum balance limit of £5 million.

Steve Jennings, Director of Business Banking at Alliance & Leicester Commercial Bank, comments on the launch: "If your organisation has surplus funds with one of the big banks, you could earn almost £12,000 a year in additional interest by simply moving your balance to the new Base Rate Beater account with Alliance & Leicester Commercial Bank."

The rate for balances over £500,000 includes a bonus of 0.15% until 30 June 2009 (when it then reverts to base rate +0.15%, currently 5.15% gross). This flexible account offers instant access, free and unlimited withdrawals via electronic transfers (including CHAPS) and can be opened online, via the phone or at any Alliance & Leicester branch.

In summary the Base Rate Beater offers:

Interest Rate - tracks the Bank of England Base Rate (+0.30% on £500,000 - £5 million until 30/06/2009)
Interest is calculated daily and applied monthly
Minimum opening balance - £200,000
Maximum balance - £5 million
Deposits - free and unlimited via post or electronic transfer
Withdrawals - free and unlimited via electronic transfer (including CHAPS transactions)
Standalone - no requirement to have an Alliance & Leicester Commercial Bank business current account
24/7 access to your account via the Internet or telephone banking
The account can be opened online at alliance-leicestercommercialbank.co.uk, or by free phone 0800 587 0800 or at any Alliance & Leicester branch.

The new Business Instant Savings Account also offers highly competitive rates. With no minimum opening balance, it pays up to 5.05% gross on balances up to £2 million and offers 10 free electronic withdrawals every month (other than CHAPS). All rates are linked to the Bank of England base rate.

In summary the new Business Instant Savings account offers:

Interest Rates - linked the Bank of England Base Rate
Interest is calculated daily and applied monthly
No minimum balance
Maximum balance - £2 million
Deposits - free and unlimited via post or electronic transfer
Withdrawals - 10 free electronic transfers per month (including CHAPS transactions) and free ATM withdrawals up to £250 per day
Standalone - no requirement to have an Alliance & Leicester Commercial Bank business current account
24/7 access to your account via the Internet or telephone banking
The account can be opened online at alliance-leicestercommercialbank.co.uk, or by free phone 0800 587 0800 or at any Alliance & Leicester branch.

The new Fixed Term Treasury Account is linked to the money markets and offers customers a fixed rate of interest based on how many months the funds will be in the account. With a minimum investment of £250,000, this is the first time Alliance & Leicester Commercial Bank has offered this type of product to businesses with less than £5 million to invest. To help customers make an informed decision, and in line with its commitment to transparency, indicative interest rates will be updated and published every week on the bank's website alliance-leicestercommercialbank.co.uk. The account can be opened over the phone by calling free phone 0800 056 6686.

Steve Jennings, Director of Business Banking at Alliance & Leicester Commercial Bank adds: "We are seeing significant growth in the volume and value of deposits made by businesses and this new suite of products is designed to meet the needs of a range of organisations with varying amounts of surplus funds.

"From recent research we know businesses are missing out on more than
£500 million each year in extra credit interest, which highlights the importance of businesses researching the market to ensure they are receiving a competitive return. "With one in six (16%) of SMEs having more than £20,000 a year to save, finding the best home for your funds can make a real difference to the bottom line."

For further information on the range of deposit accounts available from Alliance & Leicester Commercial Bank, business owners should call free 0800 587 0800 or visit alliance-leicestercommercialbank.co.uk.