Connect with us

Global Banking and Finance Review is an online platform offering news, analysis, and opinion on the latest trends, developments, and innovations in the banking and finance industry worldwide. The platform covers a diverse range of topics, including banking, insurance, investment, wealth management, fintech, and regulatory issues. The website publishes news, press releases, opinion and advertorials on various financial organizations, products and services which are commissioned from various Companies, Organizations, PR agencies, Bloggers etc. These commissioned articles are commercial in nature. This is not to be considered as financial advice and should be considered only for information purposes. It does not reflect the views or opinion of our website and is not to be considered an endorsement or a recommendation. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third-party websites, affiliate sales networks, and to our advertising partners websites. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish advertised or sponsored articles or links, you may consider all articles or links hosted on our site as a commercial article placement. We will not be responsible for any loss you may suffer as a result of any omission or inaccuracy on the website. .

Business

EAST OF ENGLAND SMES REMAIN BIGGEST SAVERS DESPITE BREXIT VOTE

EAST OF ENGLAND SMES REMAIN BIGGEST SAVERS DESPITE BREXIT VOTE
  • East of England SMEs have the biggest savings pots with average savings balances of £707,000
  • SME savings have reduced in all regions apart from East Midlands, since the outcome of the EU Referendum
  • Businesses in North East are most active business savers 

For the second year in a row small and medium sized enterprises (SMEs) based in the East of England are saving the most money in their business savings accounts with the average balance standing at £707,000, according to new research from specialist challenger bank Hampshire Trust Bank.

While SMEs in the East are once again top of the table when it comes to the amount held in business savings accounts, they are saving 27% less than in the run up to the EU Referendum*. The national average for business savings is £446,000, a 20% drop compared to last year**.

According to the data***, only SMEs in the East Midlands have grown their business savings balances since 2016 – increasing their savings pots by 9% to £670,000. Scottish SMEs have decreased their business savings balances the most (-40%), stating they have done so in order to invest in the development of their business, followed by smaller businesses in the South East (-30%), the East and London (-27% each).

While businesses in the East of England have the largest savings pots, those based in the North East and South West are the most active savers, investing 69% and 66% of total funds respectively in business savings, higher than the national average of 52%.

Regional table

Region 2017 business savings account

(% of total funds)

% change from 2016*** 2017 current account
East £707,000 (55%) -27% (2016: £966,000) £569,000
East Midlands £670,000 (47%) 9% (2016: £614,000) £745,000
South West £623,000 (66%) -5% (2016: £654,000) £326,000
London £608,000 (48%) -27% (2016: £829,000) £652,000
North East £598,000 (69%) -20% (2016: £749,000) £267,000
Wales £503,000 (43%) -20% (2016: £628,000) £666,000
Northern Ireland £432,000 (57%) -14% (2016: £501,000) £320,000
West Midlands £386,000 (42%) -11% (2016: £432,000) £524,000
Yorkshire and Humberside £292,000 (53%) -8% (2016: £316,000) £264,000
North West £286,000 (41%) -23% (2016: £371,000) £407,000
Scotland £220,000 (62%) -40% (2016: £364,000) £136,000
South East £93,000 (59%) -30% (2016: £132,000) £64,000
AVERAGE £446,000 (52%) -20% (2016: £556,000) £409,000

Firms in the North West, West Midlands and Wales invest significantly less than the national average in business savings accounts – 41%, 42% and 43% respectively. When asked why they kept money in current accounts, the businesses cited the need to have the money as a readily available source of capital for regular payments (25%, 33% and 43% respectively).

Stuart Hulme, Director of Savings at Hampshire Trust Bank, said: “We appreciate that this is a challenging time for UK SMEs, with the current uncertain economic and political environment impacting on savings balances across the UK. However, it is encouraging to see that on average smaller businesses are still investing 52% of total funds in business savings, just 5% less than last year’s figure of 57%.

“Rather than stockpiling cash in current accounts, SMEs should consider shopping around for a business savings account that provides a better rate of return, enabling them to make more of their hard-earned cash.”

For more information on Hampshire Trust Bank’s business savings accounts www.htb.co.uk/business-savings

Global Banking & Finance Review

 

Why waste money on news and opinions when you can access them for free?

Take advantage of our newsletter subscription and stay informed on the go!


By submitting this form, you are consenting to receive marketing emails from: Global Banking & Finance Review │ Banking │ Finance │ Technology. You can revoke your consent to receive emails at any time by using the SafeUnsubscribe® link, found at the bottom of every email. Emails are serviced by Constant Contact

Recent Post