UK Companies Are Leaving Millions of Pounds Exposed and Underperforming

UK businesses may be losing tens of thousands of pounds annually in missed interest, while also leaving an average of £2 million cash holdings potentially unprotected, according to new research on corporate treasury practices. The findings are based on a survey of 500 UK senior business leaders (CEOs, CFOs, Finance Directors, and Managing Directors) examining how businesses manage their cash.

More than three years after the collapse of Silicon Valley Bank exposed weaknesses in cash management, many UK businesses are still misunderstanding deposit protection rules.

While the FSCS update to £120,000 provides a safety net for smaller entities, larger corporations face a ‘concentration risk’ where no compensation scheme exists, yet businesses of all sizes continue to pool millions in single institutions.

The survey found a third hold over £1 million with a single bank, and the average business surveyed holds £2.21 million in cash – highlighting the scale of business savings at risk, should a bank fail. Even three quarters of those who do have multiple banking relationships keep more than the £120,000 protection limit in their main account.

Despite almost all senior finance leaders (97%) stating they are confident their business deposits are protected against bank failure, two thirds have no meaningful awareness of FSCS deposit protection or what it covers. Of those who claim awareness:

Kate Toumazi, CEO of Insignis, said: “For most businesses, cash sits in one or two accounts, earns whatever the bank offers, and gets reviewed when someone has time. What this research makes clear is that the consequences of that approach are not trivial. The exposure is real, the cost is quantifiable, and the time spent managing it manually adds up into weeks every year.”

UK businesses are forgoing tens of thousands of pounds in annual interest by keeping large cash reserves in low-yield accounts. The study found the average business holds £2.21 million in cash but could be missing around £42,000 a year by not moving funds into higher-yield options – enough to potentially hire another employee.

Despite these balances, fewer than half of businesses using multiple banks actively spread cash to boost returns or reduce risk. Most concentrate the majority of funds with a single primary bank, often following long-standing arrangements that senior leaders inherited and have not reviewed since.

Senior finance leaders spend an average of 4.5 hours a week managing banking relationships, including contacting banks, resolving issues, and monitoring accounts – more than five working weeks a year. For CEOs, this rises to 6.9 hours weekly, equivalent to over nine working weeks annually lost to finance admin.

The research was conducted by Opinium Research from 25 March and 10 April 2026, based on a survey of 500 director and board level respondents working in a finance role or function in UK private sector businesses with 10+ employees. Data is weighted to be representative of this population.

FSCS eligibility depends on a business’s legal structure and size. The protection limit for eligible business depositors is £120,000 per UK-authorised bank. Businesses outside FSCS criteria face concentration risk not covered by any compensation scheme.

Missed interest estimates are indicative, based on the gap between the average rate earned by UK businesses on cash in savings and current accounts (1.61%, Bank of England data, reported by Lightyear, June 2025) and a conservative comparative market rate of 3.5%

The research distinguishes between FSCS-eligible small businesses and larger corporate treasury entities exposed to concentration risk; while large businesses may be ineligible for FSCS, they remain subject to this risk.

The full report is available here: The big cash blind spot: How UK businesses are leaving billions in cash exposed and underperforming.

Insignis is a business savings platform that gives consumers, businesses, not-for-profit organisations & institutional customers access to market-leading savings rates, allowing them to deposit cash across multiple accounts to diversify risk and optimise returns. Insignis has partnered with over 50 banking institutions enabling advisers, finance and treasury teams to access up to 3,500 products through a single hub account.

Founded in 2017 and authorised and regulated by the FCA since 2018, Insignis has helped over 15,000 advisers and businesses distribute more than £32bn in cash assets.

For more information: https://www.insigniscash.com/.

UK chief executives are spending more time dealing with banks than their own finance chiefs, while business savings are exposed and underperforming.

Despite almost all senior finance leaders stating they are confident their business deposits are protected against bank failure, two-thirds either have no meaningful awareness of FSCS deposit protection or what it covers.