The Bank is warning that by shying away from savings, SMEs are missing out on the means to improve day-to-day cashflow or fund growth.
The average SME current account balance is more than £230,000 and, according to the research, for every £1 in a current account held by a British business, there is another £1.17 in a savings account.
Stuart Hulme, Head of Savings at Hampshire Trust Bank, said there was a huge opportunity for cash rich businesses to maximise their money and make more out of every pound they earned.
“That is why we recently launched our new suite of business savings products,” said Stuart.
“The benefit of making use of these savings accounts is not only the interest rate return you get as a business, but also the knowledge that the money you are depositing is being lent on to businesses looking to grow, delivering double value and supporting the growth of the UK economy.
“Those who are holding cash in their current account because they don’t want to tie it up should be reassured that there are accounts out there which provide both good rates of return and a wide range of terms.”
The research also showed that although the primary purpose for current account cash was to provide working capital, 42% were keeping money to hand for investment in their business in the future.
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