Flagstone expands SME savings panel to 56 UK banks

Flagstone has expanded its business savings panel to 56 UK-licensed banks and building societies, giving the 11,000 UK SMEs on its platform access to more than 200 business savings accounts.

The total is up 37% from 41 banking partners in January 2025, as the cash management platform broadens the range of deposit options available to smaller companies.

The panel now includes lenders and savings providers such as Société Générale, Santander International, Nationwide, OakNorth and Allica. Available accounts span instant access, notice and fixed-term products.

The expansion comes as more smaller businesses seek better returns on surplus cash amid higher operating costs and tighter trading conditions. Direct deposits by UK SMEs on the platform rose 81% in 2025 and continued to grow in the first half of 2026, according to Flagstone.

Flagstone says one in six business savings accounts on its platform currently offers rates of 4.00% AER or above. More than 90% of the accounts available to business savers were offering returns above inflation in mid-July, it added.

SME demand

Research commissioned by Flagstone suggests many businesses still leave most of their cash with mainstream banks at relatively low rates. In a survey of 200 SME financial decision-makers, 51% said they kept nearly all their cash with high street banks, typically earning less than 2%, if anything.

The research also indicates that deposit protection is shaping how firms think about cash holdings. According to Flagstone, 99% of companies with between £500,000 and £1 million in cash hold their funds with four or fewer banks, potentially leaving more than half of that money outside Financial Services Compensation Scheme protection limits.

On the platform, the average SME client holds six savings accounts, spread across instant access, short-term fixed, and longer notice or fixed-term products, the company said.

Katie Horne, Banks Relationship Manager at Flagstone, said the increase in bank partners reflects a shift in how smaller companies treat cash reserves.

"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," Horne said.

Bank interest

The rise in participating banks also highlights lenders' interest in reaching SME depositors through third-party platforms. For banks and building societies, the arrangement offers a way to attract business balances from companies that might not otherwise open accounts directly.

Bank ABC recently launched an exclusive six-month fixed-term business savings account on the Flagstone platform offering 4.09% AER. The bank said demand from businesses for a wider range of deposit options was increasing.

"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," Simon Atkins, European Head of Treasury and Financial Markets at Bank ABC, said.

Flagstone manages more than £20 billion in assets under administration across its business. Customers across its business, individual and charity offerings can access more than 450 savings accounts from over 65 cash savings providers, according to the company.

The enlarged business panel is part of a wider effort to help SMEs spread cash across multiple institutions and product types rather than leave large balances in a single operating account. For smaller firms, that can mean balancing three goals at once: earning a return, keeping funds available for day-to-day needs, and reducing exposure to any one bank.

Horne said the milestone also broadens participating banks' reach into the SME market.

"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," Horne said.