Last updated: 02 September 2025
Mitigating risk and protecting company cash: at a glance
- What do I need to know? Senior finance experts like you are increasingly looking to high-interest savings accounts to protect reserves and mitigate risk.
- Why does it matter? As investments remain unpredictable, the ability to grow reserves above inflation whilst keeping it protected gives businesses the flexibility needed to thrive.
- What does it mean for me? CFOs and Finance Directors that take advantage of tools to streamline protections could align with a more cautious business outlook in uncertain times.
The past few years have represented a significant challenge for small businesses. CFOs and Finance Directors have borne the brunt of this unpredictability, with high inflation eroding the value of cash reserves at an alarming rate.
The stubbornness of inflation above the 2% Bank of England target means that forward-looking CFOs and finance experts have explored new ways to safeguard their cash reserves at scale. This includes discovering ways to turn cash into more than an emergency buffer, but an asset.
In this article, you’ll learn how finance experts like you have pivoted towards expansive FSCS (Financial Services Compensation Scheme) protection to enhance their security and lower risk.
Turbulence in investing and the safer harbour of cash
Recent rough seas in the world of investing have made even the safest of assets feel unnerving.
If your company has money in the bank, or is planning to hold more cash, it’s important to understand how you can protect it in case your bank goes out of business.
Fortunately, the UK government has set up an independent body to safeguard the savings of businesses and individuals. The FSCS fully compensates each eligible company up to a limit of £85k in the event that your bank collapses.
Coverage is typically granted per account holder, per financial institution, though there are complex rules around joint account holders for businesses.
The limitations of FSCS protection
But any cash over this limit held in the same account is at risk. And if your bank shares a license with another financial institution, you may only be covered once despite dividing your cash reserves between two accounts.
The solution? Diversify your cash.
By spreading your business reserves across several banking institutions, you can make sure your company’s cash is more widely covered by the FSCS.
Protection beyond basic FSCS
Diversification is often a much more reliable way to safeguard your cash, but not just because of the FSCS. Different banks react to market shifts in unique ways. So dividing your reserves between them often helps balance your cash portfolio and avoid the volatility you’d face if you concentrated your funds with a single firm.
But it also creates an opportunity for growth. Opening accounts with various terms, rates, and reputations helps you align your savings strategy to the company’s objectives.
You might decide to deposit a portion into an instant access account, while also locking some away in higher-yield fixed-term accounts. This way, you have emergency cash on hand should you need it, while the rest works hard towards your long-term financial ambitions.
How Flagstone can help you multiply cash by division
Our cash deposit platform makes it easy to spread your business reserves across different banks, minimising your exposure to risk.
You can move your money around easily without the paperwork involved with opening multiple accounts yourself.
Mitigating risk by spreading cash reserves
CFOs and Finance Directors are under pressure to discover ways to safeguard their company’s cash at scale in uncertain times.
Increasing FSCS protection is one way to reduce risk, and savings platforms like Flagstone make this process seamless.
Maximise protection for your company’s cash reserves with Flagstone
With a single login, Flagstone gives you access to hundreds of savings accounts from 40+ banks.
Make cash your hardest worker.
