IT SMEs amass fortunes in business savings accounts

SMEs within the IT and communications sector come second when it comes to the amount of money held in business savings accounts, with the average balance standing at £804,000.

This is according to research from specialist challenger bank Hampshire Trust Bank. Accountancy SMEs, which hold an average of just over £1 million in savings, are the biggest business savers.

The national average for business savings is £556,000 – 57 percent of an SME’s total funds.

With current accounts, SMEs in IT and communications have the most of any industry on deposit, with an average of £690,000 being held.

Following the outcome of the EU Referendum, almost half (45 percent) of businesses within the telecoms sector said they were increasing the amount of total cash in their firms to build a “cash buffer” against uncertainty, higher than the national average of 38 percent.

Stuart Hulme, director of savings at Hampshire Trust Bank, said: “Our study demonstrates the sector differences when it comes to the amounts businesses and organisations are holding in current and savings accounts.

“The organisations that have been stock-piling cash into current accounts should consider the opportunities to make more out of every pound earned.

The research saw 500 SMEs – defined as businesses that have 250 employees or less – questioned across industries including manufacturing and engineering, construction, retail, charities, architects, financial services, legal services and health and medical firms.

@AntonySavvas