The UK Business Savings Market grows to £1.6bn
The UK business savings market increased month on month by £1.6bn in October to £383bn, as UK businesses show renewed focus on building up financial buffers and preparing for future investment, according to an analysis by Aldermore Bank of data released by the Bank of England.
Business Savings market up to £383bn in October, with growth of +£1.6bn (+0.4%), whilst the Easy Access market has gone up £2.3bn (+0.7%. However, the fixed rate market has gone down £0.7bn (-0.9%).
The total business savings market has grown by £17bn over the past twelve months, with Easy Access growing by 142% whilst the Fixed-rate market has declined by 42%.
Ewan Edwards, Director of Savings at Aldermore, said: “The UK business savings market has shown remarkable growth the past year, as we’re seeing an increasing number of businesses focus on building funds as part of their future strategies. At the start of the pandemic, many were caught out by the financial impact of multiple lockdowns, but the trends are now showing businesses have a change in mindset and see savings as essential to their company’s health.
“The preference for easy access products suggests SMEs are looking for flexibility in light of continual uncertainty, allowing them to insulate in case of any sudden economic shocks but also to ready themselves for future investment opportunities.”