If you have surplus cash in your business, you may be wondering what to do with it.

Choosing to do nothing is probably the most common option that business owners use in the small and medium-sized enterprise (SME) market.

Many successful businesses have a sizable amount of cash in a current or deposit account, paying minimal interest rates. This could be due to an insufficient business plan, concern over future expected cash flows, or just the current low-interest environment.

No matter the reason, many businesses now have savings that are earning next to no interest.

  • No effort required
  • Ensures there’s a lump sum of cash in the company account, especially for emergencies.
  • No real return on assets
  • No real Financial Services Compensation Scheme (FSCS) protection, potentially putting money at risk.


If this is your business, it might be worth considering spreading risk, rather than holding large sums of cash with one bank.

Currently, the FSCS ensures that you’d receive £85,000 if a financial institution became unable to pay out, such as if they went into administration. However, that means any money you hold above this amount is potentially at risk.

You could reduce this risk by holding your money with multiple institutions.

Want to find out more?

If you’d like to find out alternatives to doing nothing with your money, please download our guide to read six more options for surplus cash in your business.

Alternatively, please email hello@cordinerwealth.co.uk or call 0113 262 1242 for more information.

Please note

This article is for information only. Please do not act based on anything you might read in this article. All contents are based on our understanding of HMRC legislation, which is subject to change.