The FSCS-protected accounts (for amounts up to £85,000) will offer interest rates of 1.00% and 1.05% AER, fixed for 12 and 24 months respectively. Accounts can be opened entirely online and managed through the bank’s internet banking platform and secure messaging service.

Businesses will be able to invest between £1,000 and £250,000 into their accounts, with interest calculated daily and paid monthly (to the date of opening) or upon the maturity of the fixed term.

To provide ease and convenience, business owners have up to 14 days to deposit their funds before the fixed term begins.

This new business account follows the launch of a 12-month fixed rate deposit account for retail savers and is the latest in a suite of new products that are set to be launched by Allica Bank in 2020.

Lawrence Holland, Head of Deposits, Allica Bank, said:
“At Allica Bank, our primary aim is to support British businesses by providing them with the financial products they want and need to succeed. Our new savings accounts are an important part of this, giving businesses a straightforward way to get a decent return on money they worked hard for.

“By launching savings accounts that are fixed for 12 or 24 months, and by accepting deposits from £1,000 up to £250,000, we believe we have designed products that work for a considerable number of businesses in a broad range of financial positions.”

Mark Stephens, CEO of Allica Bank, said:
“These are challenging times, but we hope that the introduction of our new deposit accounts will help small and medium sized businesses up and down the country.

“Our customers will always be our priority. At Allica Bank, we are working hard to provide them with a full suite of financial products, supported by top-tier customer service and driven by industry-leading technology. Our new savings accounts are no exception.”