SME IT and communications companies save the most amount of money in their business savings accounts, with the average balance standing at £843,000, according to a new report.
Research by Hampshire Trust Bank has revealed that IT and communications is the only sector to have increased its business savings balances since the run-up to the EU referendum.
When asked why they planned to increase the amount held in business savings accounts, 75% of IT and communications SMEs said they were building a cash buffer, higher than the national average of 49%.
SMEs in the retail sector invested the highest portion of their funds, saving 74% in business savings accounts, compared with the national average of 52%.
SMEs in the legal sector held the lowest proportion of total funds in savings (38%).
Charities experienced the biggest fall in business savings (-69%), followed by accountancy firms (-39%) and retail SMEs (-31%).
Stuart Hulme, director of savings at Hampshire Trust Bank, said: “Our research reveals the sector differences when it comes to the amount being put into savings accounts.
“It is encouraging to see that retail, accountancy and architect SMEs are confidently planning for the future by placing the majority of their total funds into savings.
“Rather than stockpiling cash in current accounts, SMEs should consider the opportunities available to make the most out of their hard-earned cash.
“It is important for businesses to shop around for a savings account that provides a better rate of return and helps them build for the future.”
Table of savings data:
Metro Bank expands commercial team with new director
Metro Bank has announced the appointment of Roger Fenwick (pictured above) as director of specialist sectors for its commercial business...
Metro Bank confirms director of commercial real estate departure
Metro Bank has confirmed that its director of commercial real estate Andy Hallett has stepped down from his position...
Hampshire Trust Bank appoints new chairman
Hampshire Trust Bank has announced the appointment of Robert Sharpe as its new chairman, subject to regulatory approval...
Five banking events to attend by the end of 2017
The specialist banking sector has a whole host of events offering opportunities for education, networking and personal development...
Paragon to expand reach after reorganisation
Paragon Bank is focusing on expanding its reach and offering an enhanced proposition following its reorganisation last month...
OakNorth secures £154m investment
OakNorth is looking to take its proposition global after securing a £154m investment as it aims to lend a further £1.5bn to UK businesses in 2018...
Aldermore confirms takeover talks with FirstRand
The board of FirstRand Limited has confirmed that it has made an approach to acquire the entire issued and to be issued share capital of Aldermore...
Gatehouse Bank appoints interim CRO
Gatehouse Bank has appointed a new interim chief risk officer (CRO)...
Tesco Bank launches current account in NI
Tesco Bank has launched its current account in Northern Ireland after researching customer attitudes towards banks in the region...