BoS launches business account

Bank of Scotland Business Banking has launched a new deposit account for small businesses, offering 25bps above base rate (5.64% AER / 5.50% gross p.a.) on balances of £1 and above. This moves to a variable rate after year 1 (currently 4.25% gross variable). Meanwhile, there are no charges for pay ins or withdrawals.

With no catches and no hidden terms and conditions, claims the bank, the Total Business Deposit Account could stand to make small business customers £550 pa on a balance of £10,000.

Put another way, if every small business holding deposits with the 'Big Four' banks were to switch over to the Total Business Deposit Account, an extra £585 million would be added to the bottom line of SME plc every year.

Not surprisingly, the Total Business Deposit Account is aimed at helping Bank of Scotland Business Banking take a bigger slice of the small business deposit market - a market estimated to be worth approximately £45 billion (source: British Bankers' Association 2007).