Despite receiving low amounts of interest, the figures also show many SMEs are regularly reviewing their surplus funds. The research found that businesses regularly think about the best home for their surplus funds with more than two-thirds (67%) reviewing their accounts at least once a year. But the survey suggests that many SMEs are simply not shopping around to get the best deal or find the process too much of a hassle.
The research, which surveyed more than 1,000 SMEs, found that of those manufacturing businesses surveyed with surplus funds, three in ten (31%) hold the majority of their surplus funds in a business current account, whereas 40% keep theirs in a business savings account. These findings follow earlier Aldermore research which found that nine out of 10 SMEs (91%) in Britain who have a business savings account hold it with the same provider as their current account.
With the latest figures from banking trade association the BBA shows cash held by SMEs in current and deposit accounts totals £152 billion, the Aldermore research highlights that British small businesses are missing out on millions of pounds in lost interest every year.
The main findings from the manufacturing sector include:
The average interest rate received on surplus funds is 0.56%;
- 22% of SMEs review their accounts more than once every six months and 16% once every six months. 10% admit they never review their accounts;
- 15% of SMEs do not have any surplus funds
To improve the information available to the UK's time-poor SMEs, Aldermore has launched Aldermore's SME Rate Checker.
