Last updated: 03 September 2025
Business savings at risk from inflation: at a glance
What do I need to know? Around £149bn of cash reserves for small businesses sits in accounts that earn no interest at all.
Why does it matter? High inflation is reducing your purchasing power every year.
What does it mean for me? Your business can offset the erosion of value in your cash deposits by moving money into high-interest savings accounts.
Over the past 10 years, the global economy has endured multiple shocks. Brexit, the pandemic, and war in Europe have contributed to shift in attitudes towards risk in small businesses. Lean supply chains were radically revisited, as just-in-time became just-in-case rapidly in 2021.
The consequences for the finance function have been profound. As businesses pivot to a semi-permanent crisis footing, CFOs and Finance Directors have prioritised building cash reserves.
But the threat of inflation is still prevalent. The UK appears highly sensitive to inflationary spikes, according to data from the ONS published in 2025.
In this article, you’ll learn how forward-thinking CFOs are turning their cash reserves into an increasingly valuable asset, despite persistent inflation.
Transforming a safe asset into interest earnings
High inflation erodes the value of cash reserves if left to languish in low-interest accounts.
According to analysis by Allica Bank, approximately £149bn of small business cash reserves sits in accounts that pay no interest at all.
But savings accounts often enjoy rates above inflation. This means that CFOs can move a substantial amount of their cash reserves into accounts and grow the value of deposits, even in challenging times.
Why now?
CFOs and Finance Directors have always had limited time to support their businesses.
Opening multiple business savings accounts used to involve filling out a range of time-consuming applications, each with their own KYB and AML checks.
But new tools like Flagstone’s savings platform make it easier than ever to open multiple accounts for your business.
With one application, CFOs can divide their reserves between a handful of accounts. You can choose a range of banks and financial institutions with independent FSCS (Financial Services Compensation Scheme) licenses.
This increases your protection should your bank go out of business, while ensuring you’re earning high levels of interest.
How businesses are responding to persistent inflation
Businesses have a challenging economic environment to navigate. And the CFO isn’t the only member of the executive team responsible to chart a course through turbulent times.
But CFOs and Finance Directors can now quickly and easily give their businesses more peace of mind.
By opening multiple, high interest savings accounts for your business, you can turn the cash reserves you’ve built into an asset.
Using savings platforms like Flagstone can make this straightforward, allowing you to increase your protection without expanding your paperwork.
Open multiple business savings accounts with Flagstone
With a single login, Flagstone gives you access to hundreds of savings accounts from 40+ banks – more than any other savings platform.
Turn cash into your hardest worker.
