Recognise Bank to pass on Bank of England interest rate rise to savers

Recognise Bank will pass on the Bank of England’s interest rate rise onto its Business 95 Day Notice Savings Account customers. The new rate of three percent AER for the Business 95 Day Notice Account will come into force next Wednesday November 9. This is up from the 2.25 percent it paid previously.Recognise Bank, said the new rate would apply to both new and existing savers.Last week Recognise, which was created to serve the UK’s 5.5 million small and medium-sized enterprises (SMEs), pledged to pass on today’s increase in full to help small businesses.Dean Carter, group treasurer of Recognise Bank, said: “Many small businesses are under considerable financial pressures at the moment, so we wanted to show that Recognise is here to support them by paying them the same interest rate as the Base Rate.’We know that SMEs often keep a cushion of cash to pay future bills or in case of an emergency, such as a late payment from a customer or other cashflow issues.READ MORE: Half a million pensioners to miss out on state pension rise due to where they live Recognise Bank will pass on the Bank of England’s Interest Rate rise to one of its accounts (Image: GETTY)’By being able to earn three percent AER on their savings, businesses can maximise the earning potential of their cash when they are not using it.’With an interest rate of three percent, on a £1,000 deposit people could make £30 worth of interest over the course of a year.People can choose to have their interest paid monthly or annually on the Business 95 Day Notice account.If choosing to pay monthly it will be paid on the same date each month that money was first paid money into the account, and for annually it will be paid on the anniversary of the date money was first paid in.DON’T MISSRishi Sunak ‘will do what’s right’ pensioners told as they await verdict on 10.1% rise [TRIPLE LOCK]Halifax customer warns of ‘classic’ cold call scam where fraudsters can steal your details [FRAUD]Pensioner ‘amazed’ to get £18,000 cheque after Martin Lewis’ state pension warning [PENSIONS TIP] As of today, the Bank of England’s base interest rate is three percent (Image: EXPRESS)The Bank of England announced the eighth consecutive interest rate rise at lunchtime today.The increase was the biggest individual hike in decades taking its base rate from 2.25 percent to three percent.The bank warned that the UK could face a protracted contraction in the coming years, with high inflation and the unemployment rate climbing to 6.5 percent.This would the highest recorded since the financial crisis in 2008.This would have a huge impact on small businesses with many already warning that they may not be able to remain open with inflation, food and energy costs continuing to rise.In September, the Consumer Prices Index (CPI) rose to a 40-year high of 10.1 percent.