SMEs miss out on millions in unchecked saving rates » SMEInsider

SMEs miss out on millions in unchecked saving rates

Nearly a quarter of all British businesses are unaware of what interest rate they are receiving on their surplus funds, a new study finds.

The survey was conducted by Aldermore, a legacy-free bank that focuses on small-to-medium sized enterprises. Over 1000 SMEs took part in the research.

The findings reveal that 24 per cent of SMEs don’t know what interest rate their business is currently receiving on their surplus funds. A further 23 per cent admit their business receives 0 per cent interest. One in five small businesses has no surplus fund whatsoever.

Although many SMEs are receiving low amounts of interest, it is surprising to find that six out of every ten (62%) small businesses review their accounts at least once a year.

Where is the most common place for SMEs to store their extra cash? Four in ten (41 per cent) of small businesses keep their funds in a business current account, whereas 35 per cent keeps theirs in a business savings account.

‘‘It is clear many SMEs are not getting the most out of their surplus funds. While the interest rate should be the first thing you should know about your account, businesses regularly tell us that it really isn’t as straightforward as it should be to find out what they’re earning,’’ comments Simon Healy, managing director of savings at Aldermore.