More than a third of businesses don’t know what interest rate they receive on their savings
New research from Aldermore shows more than a third of small and medium-sized enterprises (SMEs) (34%) don’t know what interest rate their business is currently receiving on their surplus funds. A further 14% admit their business receives 0% interest.
The research, which surveyed more than 1,000 British SMEs and follows a similar survey to last year, also shows more than eight-in-10 (81%) SMEs who have a business savings account hold it with the same provider as their business current account.
The survey also found that SMEs aren’t reviewing their savings as regularly as they did last year. This year’s survey found that 55% of businesses review their accounts at least once a year, compared to 62% in 2015. Interestingly, almost half (47%) feel the potential returns aren’t worth the effort meaning many SMEs are simply not shopping around to get the best deal or find the process too much of a hassle.
Of those businesses with surplus funds, almost half (46%) hold the majority of their surplus funds in a business savings account, with just over a further third (34%) keeping their funds in a business current account. The most recent figures from the BBA shows cash held by SMEs in current and deposit accounts totals £163.5bn.
Commenting on the research, Simon Healy, managing director of savings at Aldermore said:
“Business savings play an important role for SMEs in covering unexpected bills, future investment and general cash flow. It is therefore important businesses make the most of their money and shop around for the best rate. While it is understandable that SMEs prefer to keep their surplus funds with the same provider as their business current account, in reality they are not making the most of their hard earned money.
“Opening a business savings account can be hassle free, at Aldermore you can open one within 15 minutes. Our business savings rate checker service allows SMEs to quickly establish if there is a better home for their surplus cash without the need to change their business current account.”