Is it worth our business trying to improve our interest rate?

On a recent visit to a local business we were asked a simple question…

“Is it worth our business trying to improve our bank account interest rate?”

The answer to their question was simple…

The business had £1.2m in cash deposits with their current account provider and recently had their annual review with their business banking manager.  The bank explained they could offer 0.015% on their account.  This would give an annual return of just £180!

After reviewing their requirements and researching the market, DCM identified that they could be achieving a return of £8220 per annum with funds on an easy access basis.  Better still, this figure and the examples below, represent the returns after fees.  DCM’s proposal also had the added benefit of holding funds with several institutions, spreading their exposure and risk.

If they could have left the capital untouched for a year the margin would have risen to £12,540 and two years £14,580.

Choosing DCM was a no brainer, when compared with the return of £180 offered by their bank.

With the account up and running and their cash earning a much more competitive return, the clients commented:

“With bank interest rates so low, we were looking for a convenient way to make our surplus cash work harder.  We were introduced to Dynamic Cash Management, who provide their expertise to research the market and manage the deposits, with minimal input from us.  By engaging Dynamic Cash Management, we have been able to achieve better returns without compromising our fund access flexibility.”

N.B. The savings rates mentioned in this article were correct at the time of publishing. However, these rates may change in the future.