Flagstone Hits 50-Bank Milestone to Boost SME Savings Returns

Quick Summary

Flagstone helps UK SMEs maximize returns on cash reserves by providing access to over 200 business savings accounts from 56 partner banks. This SME savings platform allows businesses to diversify deposits, protect funds under FSCS rules, and access market-leading rates of 4.00% AER or higher.

How Does Flagstone Help SMEs Optimize Cash Reserves?

Flagstone provides a centralized SME savings platform that connects 11,000 UK businesses to a record-breaking 56 bank partners. By consolidating access to over 200 accounts, the platform eliminates the administrative burden of opening multiple individual bank accounts. This scale allows SMEs to diversify deposit exposure and ensure their surplus capital is not sitting dormant in low-interest high-street accounts.

• Access to 56 UK-licensed banks and building societies.
• Over 200 business savings accounts available.
• 81% surge in direct SME deposits recorded in 2025.

"Partnering with more than 50 banks is a significant milestone for our SME business. With us, they open new doors to business customers that might not have found or thought of them, and are able to provide a critical piece in the wider puzzle of providing multiple accounts and multiple banks to help SMEs maximise returns and minimise risk." said Katie Horne, Banks Relationship Manager at Flagstone.

What Returns Can Businesses Expect from the SME Savings Platform?

The SME savings platform currently offers highly competitive yields, with 16% of available accounts providing rates of 4.00% AER or over. This is a significant improvement over traditional high-street banks, where 51% of SMEs earn less than 2% on their cash. By utilizing a mix of instant access, notice, and fixed-term accounts, businesses can maintain liquidity while generating a secure and active income stream from their reserves.

• 16% of accounts offer 4.00% AER or higher.
• 90% of accounts provide inflation-beating returns.
• Exclusive 4.09% AER six-month fixed-term account launched via Bank ABC.

"We are pleased to continue our partnership with Flagstone, providing its business customers with access to competitive deposit solutions across GBP, USD and EUR. As businesses take a more active approach to managing surplus cash reserves, partnerships such as this can help broaden their access to deposit options that meet their cash management needs." said Simon Atkins, European Head of Treasury and Financial Markets at Bank ABC.

How Does Flagstone Improve SME Risk Management?

Risk mitigation is a core feature of the SME savings platform, specifically addressing the 99% of companies with £500k to £1m who currently hold funds in four or fewer banks. Flagstone enables users to spread cash across an average of six different savings accounts, maximizing protection under Financial Services Compensation Scheme (FSCS) rules. This strategy ensures that dormant cash reserves are protected against the risk of individual bank failure while remaining accessible.

"For a long time, generating income from your cash was a luxury only those businesses with time on their hands could think about. But, cash management has switched from luxury to necessity, particularly in a political and economic environment where running - or ideally growing - a business is hard. While businesses face pressures such as higher business rates, employment costs and late payments - finding fast, flexible and efficient ways to safely turn their dormant cash reserves into a secure and active income generator is crucial." said Katie Horne @ Flagstone.

FF NEWS TAKE:

Flagstone’s expansion to 56 bank partners moves the needle by proving that SME cash management is no longer a niche service but a core treasury requirement. In a high-rate environment, leaving cash in 0% accounts is a fiduciary failure. Flagstone has successfully positioned itself as the operating system for savings, providing the infrastructure SMEs need to treat their balance sheets with the same sophistication as large corporates.