SMEs across Slough, Windsor, and Maidenhead are missing out on more than £40 million of 'lost interest' every year, according to Allica Bank.

The bank, which is solely focussed on established SMEs, produces an independent tracker each month which compares the top rates offered by challenger banks with the rates set by the six largest incumbent providers in the UK: Barclays, HSBC, Lloyds, Nationwide, Natwest, and Santander.

Its tracker suggests that the average savings rate offered to SMEs by the big banks is 1.39%, while "several challenger banks are offering rates of up to 4.45% on the same cash."

The average SME, with savings of £75,000, according to Allica, would see annual interest of £1,044 with the average big bank rate, compared to £3,337.50 with this top-level 4.45% challenger bank rate.

Multiplied across the 18,235 SMEs which Allica says are in Slough, Windsor, and Maidenhead, the difference in interest comes to £41,821,972.50.

According to Allica, Windsor is the worst affected of the three towns for 'lost interest,' with SMEs losing more than £15m annually. The figures for Maidenhead and Slough SMEs are £13.8m and £13m respectively.

Allica believes that high street banks are offering better rates to bigger businesses behind closed doors while leaving SMEs out in the cold.

The effect is compounded, says Allica, by many SMEs leaving their cash in a current account earning no interest at all, either because they don't see the rates of big banks as "worth the hassle" or because they are unaware of better rates available.

Allica is asking the government, and regulators, to force big banks to notify SME customers of the top rates in the market, and where they can be found.

It says that the measure would increase transparency in the market and encourage competition.

A campaign by the bank, called The Great British Savings Squeeze, has been backed by the Federation of Small Businesses.

Ayan Butt, Allica Bank relationship manager for Slough, Windsor, and Maidenhead, said: "The gap between the savings rate SMEs are offered by challenger banks compared with their larger, incumbent competitors has officially hit 3%.

"For some this might not seem like a big number, but for SMEs across Slough, Windsor, and Maidenhead that could mean having the flexibility to invest in new equipment or even hire a new staff member.

"It’s time for this to change and for small businesses to get the money they deserve."

For more information about the Great British Savings Squeeze campaign, visit https://www.allica.bank/hubfs/pdf/Allica_Bank-Great_British_Savings_Squeeze.pdf