Farmers receiving their Basic Payment Scheme (BPS) payments could make their money work harder with the help of a new specially designed agricultural savings account.
Over £1.7bn of BPS money has just landed in the bank accounts of 97,500 farming claimants, according to the Rural Payments Agency (RPA) – but a lot of that money will go straight into current accounts or investment in next growing season, with no return achieved.
Farmers could instead increase their return by investing surplus BPS cash in a savings account which also offers flexibility to access funds when needed, suggests Nick Evans, managing director at Oxbury Bank.
“We know cash flow is really important to farming businesses, and this often puts farmers off from investing their money into savings accounts. That’s why we’ve launched a new Farm Business Bonus 5 Day Notice Account, especially for the challenges farmers face.
“The account allows farming businesses to make short-term returns on their cash with almost no effort at all, but with a five-day notice period to access funds, it also has built-in flexibility. This account is for farmers who are smart about their financial future, but want the ability to access funds quickly,” says Mr Evans.
The Farm Business Bonus 5 Day Notice Account offers an interest rate of 0.71%, which includes a 0.36% bonus to those who are active farmers. Every penny saved with Oxbury is lent to farmers and the rural economy, with deposits being raised to support its pipeline of farm loans.
The account is the third Farm Business Bonus Notice Account to be offered by Oxbury Bank: The other two farmer savings accounts offer a 35-day notice period with an interest rate of 0.86%, and a 95-day notice period with an interest rate of 0.96%. There is also a 1 year Bond Account offering an interest rate of 1.26%. All offer bonus interest to farmers.
To apply, farmers can visit Farm Business Bonus | Oxbury | The Agricultural Bank // https://www.oxbury.com/farm-business-bonus.