London SMEs have more money in the bank than the national average

Hampshire Trust Bank brings good news on the future of London's economy with the small and medium- sized firms in the city having an average savings account of £500,000, which is an amount nearly twice the national average.

According to the new research conducted by Hampshire Trust Bank, London and West Midlands-based firms have higher savings compared to other business in the region. London's firms have about £539,510 and he West Midlands £394,405. These numbers are significantly greater than the national average, which is £273,305.

Hampshire Trust Bank Stuart Hulme said, "What's revealing is that the businesses which have lower overall amounts of money in the North East, East and Yorkshire & Humberside, are putting a significant percentage of cash they have available into savings accounts, indicating that these businesses are confidently planning for the future."

The research also found that smaller business in North East, East, and Yorkshire, & Humberside put half of their total funds in such savings account. To be more specific, North East and Yorkshire & Humberside both have 47 percent, while the East has 52 Percent. Even though these places have the lowest amount in business savings, these numbers are nearly half to the national average, which is at 52 percent.

Another research by Hampshire Trust Bank in July this year shows that British businesses are saving more money for bigger cash buffers and to combat volatility in the economy. During this time, the bank warned SMEs about missing out on ways to gain more cash flow and gain bigger fund, by not saving enough. But it seems like the SMEs have overcome this issue now.

Britain's SMEs keep £230,000 in a current account, and they are missing out on the interest payments they could gain by moving big cash piles from their current accounts to savings accounts.

Some 39 percent of companies in London are confident to put money away for more than one year. That is greater than the national average, which is 25 percent. 28 percent of businesses in the West Midlands also see this trend. The companies that have the lowest percentage of business savings are in Northern Ireland.