However, the Hampshire Trust Bank study also found that SMEs in the east of England have overtaken London SMEs since last year to be named the biggest savers, with an average of £966,000 in the bank.
The lowest savers are located in the south east, with an average savings account balance of £132,000, while south west and northern Irish SMEs are the most active savers, investing 79 per cent of their funds into business saving accounts.
Meanwhile, SMEs in the west Midlands were found to be the least active, investing just 36 per cent of their funds.
Read more: Brexit and the City: Your need-to-know names
The national average for business savings is £556,000, or 57 per cent of an SME’s total funds.
Stuart Hulme, director of savings at Hampshire Trust Bank, said: “Our study demonstrates the regional differences in the amounts businesses are holding in current and savings accounts.
“It’s encouraging to see SMEs in the South West and Northern Ireland are confidently planning for their future, by placing the majority of their total funds into savings accounts.”