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It is safe to say that last few years have been difficult for savers, with ever dwindling rates that are now totally outpaced by runaway inflation.

Small business owners haven't been any different, with rates on offer being as disappointing as those offered to everyday savers.   

However, there has been a rare chink of light this week, with Investec boosting the rate on its 32-Day Business Notice Account from 0.55 per cent to 0.65 per cent - although it does require a chunky amount to open. 

Investec now offers business owners an attractive rate of 0.65% on their 32-day notice account. But if SMEs want more they will have to tolerate longer notice periods

Rachel Springall, finance expert at Moneyfacts, says: 'It's fantastic to see rate competition in the business deposit sector with challenger banks offering some of the best returns available on the market.'  

The increase in Investec's rate means it makes the top of the board when compared to business savings accounts with similar notice periods.

Samantha Booysen, head of digital savings at Investec, said: 'We are committed to offering businesses one of the best cash savings products available, which includes not just a fair rate, but also a clear product with unlimited withdrawals and no hidden fees or charges.'

In order to qualify for this rate, businesses have to deposit at least £40,000, with a maximum cap of £800,000.

Meanwhile, other business deposit accounts within Moneyfacts' top 10 list require far less of a deposit with some needing £100 for 0.5 per cent - such as one offered by Melton Building Society, although this comes with 100 days notice.

Investec's new rate is competitive and has fired itself to the top of the best buys for notice terms under 35 days. The next best is from Mansfield Building Society at 0.5 per cent.

There are a number of accounts that pay a smidgen more than 0.65 per cent - but have far longer notice terms, such as Allica, Hodge and Redwood Banks:

If business owners want instant access the next best deal is Hanley Economic Building Society's Instant account, which offers 0.55 per cent with a minimum deposit of £1,000.   

Few business savings account providers offer competitive rates. Investec's analysis showed that more than half paid rates of 0.25 per cent or less. 

Additionally, just nine were identified as paying rates of 0.5 per cent or more. This is despite some asking companies to lock their money away for as much as 100 days.

Springall says: 'Outside of the fixed rate market, businesses will find the top end rates are on accounts that require up to 100 days' notice for account holders to be granted to access funds.

'However, the latest deal from Investec has a notice period of 32 days and pays an attractive 0.65 per cent - just 0.05 per cent less than the market leaders which have longer notice periods.' 

Businesses can get a better deal if they're willing to consider fixed rate bonds - but these don't offer the same flexibility that many SME owners are likely to want. 

Springall adds: 'If businesses can invest for a year and be comfortable to lock this away, then they could get a market-leading 0.9 per cent fixed from Shawbrook Bank.'

Lower rates are typically also offered if SMEs want the flexibility to withdraw money. 

Businesses that wanted to withdraw cash within 30 days or less were only offered a top rate of 0.25 per cent, the analysis by Moneycomms shows.

The analysis found 13 business notice accounts paid 0.1 per cent or less while another 16 paid between 0.11 per cent and 0.25 per cent.

Andrew Hagger, from Moneycomms, adds: 'Some business customers will find themselves with substantial credit balances sitting in their current account for some periods during the year, earning them absolutely nothing.

'Understandably many SMEs are reluctant to lock their surplus funds away in a bond for an extended period of one year plus, but an account with a short notice period can deliver a decent interest return while giving the business owner the flexibility to access the money at reasonably short notice when needed.'

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