New research highlights that only a third of small to medium sized enterprises (SMEs) in the UK have a business savings account.
Research by the British bank Aldermore found that 31 per cent of SMEs have a business savings account, and that nine out of 10 of those hold their savings with the same bank that controls their current account.
One thousand SMEs across the UK were contacted by Aldermore in conjunction with YouGov. Reasons for opening a savings account include for in case of emergency (40 per cent), for business taxes (35 per cent), or as an aid for cash flow fluctuations (34 per cent).
Simon Healy, managing director of savings at Aldermore commented on the findings: “It is concerning that only a minority of small and medium-sized businesses have a savings account, as surplus funds provide protection against unforeseen cash flow issues which can create real problems.
“This, coupled with the fact that nine out of 10 SMEs hold their savings with the same bank as their business current account, shows that businesses are simply not looking around.”
The research also uncovered variation between the different regions in the UK as well as trends in micro, small and medium sized companies.
Firms in London were most likely to have a savings account, with 38 per cent found in the region, as opposed to the 21 per cent in East Midlands and the North East.
Levels across the regions were however similar on the topic of increasing interest rates. With 37 per cent in the South East and 40 per cent in Scotland saying it would have a negative effect on their business.