You can save a significant amount of money in the UK by switching from your high street bank to a more flexible financial service provider. Whether you want to save on bank fees, or simply want to reduce the amount you spend on your daily banking, there are a number of ways you can cut costs and save money.
Interest rates on business savings accounts
Business savings accounts offer entrepreneurs the chance to earn interest on their money. While the national banks that offer the highest APY on business accounts are Chase, Bank of America, and Wells Fargo, small business owners can get a higher interest rate from smaller, community banks. The APY on business savings accounts can range from 0.01% to 0.20%.
Business savings accounts have a higher interest rate than other business accounts, but they may require a large initial deposit. The amount required to open a business savings account varies from bank to bank. Generally, a high-yield account will require a larger initial deposit and may have limits on the number of withdrawals that can be made. A business savings account is a great idea if there aren’t enough funds in the business checking account to cover expenses. Since the funds in the savings account accumulate interest, it is a good idea to open a business savings account if you have the means to make larger deposits in the future.
Cost-cutting ideas
There are many hidden costs associated with running a business. Love Energy Savings has identified 5 cost-cutting opportunities that can help business owners keep their costs under control. These ideas range from switching suppliers to cutting software subscriptions and reviewing contracts. By reducing these costs, businesses can free up money for new projects and infrastructure improvements.
Switching to alternative financial service providers
The government’s new financial reforms seek to cement the UK’s position as a financial centre of excellence. They will establish the necessary conditions for businesses to remain in the country, while also looking for opportunities to cut red tape and maintain high standards. HM Treasury has published its own paper that highlights some of the key drivers for new payment systems, including Faster Payments and the impact of Open Banking.
Reuse packaging to save money in business
Reusable packaging has a number of benefits for business owners. These include lowering overall expenditure and improving short-term profitability. Though it may require an initial investment, reusable packaging can save a company up to 40 percent of its costs every year. It is a wise move for business owners who want to improve the efficiency of their supply chain and contribute to a cleaner environment.
Companies can create reusable packaging programs to meet the requirements of various customers. For example, Coca-Cola has launched a refill station for its products at retail stores in Mexico. Similarly, Unilever has launched refillable versions of its hair products at Target stores across the U.S. In addition, the Body Shop has begun experimenting with reusable refills.
Switching to fixed rate business bond
A fixed rate business bond can be the best choice for business owners who want to secure a steady flow of cash. The main factors to consider when choosing a bond are the interest rate and the duration. Also, consider whether you will be able to manage your account online. The best way to do this is to search for rates online. You can also apply for an account online, but some providers may only accept applications by post.
Another advantage to a fixed rate business bond is the certainty it offers. Unlike an account with variable interest rates, a fixed rate bond has a set date for which you will receive your money. The main disadvantage is that fixed rate bonds are usually more restrictive than other business savings accounts. Often, you can only make one deposit and not withdraw money until the maturity date, which can be several years away. However, many business bond providers allow you to open more than one account.
