Manufacturing SMEs are among Britain’s top savers, with more than half of their readily available cash now in savings accounts, according to Hampshire Trust Bank.
Its research found that manufacturers have an average of £326,532 in a savings account compared to an average of £259,773 sitting in their current accounts.
In fact, an impressive 94% have a business savings account, compared to 82% of all business SMEs.
Those not putting more into savings say it’s the case because they are apprehensive about tying their money up. Half (51%) of manufacturers polled stated that they feel the need to keep money in their current accounts rather than savings accounts in order to be prepared for major business investments, where they might need the money at shorter notice.
- Manufacturing sector maximising interest potential with £326,532 in savings
- A quarter (25%) would consider tying up cash for over a year
In addition to this, a third (59%) feel the need to keep cash in current accounts in order to create a “cash buffer” to make their business more secure.
Head of savings at Hampshire Trust Bank, Stuart Hulme commented: “It is great to see how manufacturers are embracing savings accounts. For cash rich businesses there is a huge opportunity to maximise their money and make more out of every £1 they are earning.
“It’s for this very reason that we recently launched our new suite of business savings products. 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.
“For those companies who are holding cash in their current account because they don’t want to tie it up, they should be reassured that there are accounts out there which provide both good rates of return and a wide range of terms.”
Businesses looking to maximise their tax year financial planning can take advantage of a new bond from Hampshire Trust Bank which is offering a new-to-market 30-month term.
Those taking it out this month are set to benefit from a market-leading 2.2% AER and for their money to be freed up come March 2018, just before the start of the new 2018-2019 financial year.
Hulme added: “We expect a strong demand for our new 30-month business bond. It gives SMEs the chance to save at a great rate today, safe in the knowledge that when the product matures it will do so ahead of a new financial year which we hope will appeal to those with cyclical financial planning cycles.”