Compare the Best Business Savings Accounts in the UK

Save up to up to 5.01% with business savings interest rates

Business savings accounts are an ideal way to grow your capital. But which are the best savings accounts available to UK businesses?

Business Savings Accounts

Find the best savings account for your business today by comparing multiple top business savings brands.

I’ll cover the best accounts currently available including notice, fixed term and instant access, covering account features and interest rates to help you choose.

(If you’re interested in a current account, read our guide to the best business bank accounts)

The Best Business Savings Interest Rates in 2024

We keep the table below updated with the newest rates and account details. This way, you can easily find the best savings account for your business.

Why Compare Business Savings Accounts with Business Expert?

• Get access to the highest interest rates to increase your savings growth.
• Read our expert research into the best savings accounts with minimal or no fees.
• Discover accounts that match your cash flow needs, allowing for easy deposits and withdrawals.
• All these accounts are FSCS Protected, (a government scheme that protects your money up to £85,000 in case the provider becomes insolvent)

What is a Business Savings Account?

A Business Savings Account is a bank account specifically designed for businesses to save their surplus funds while earning interest. This account is separate from a business’s day-to-day operational accounts, such as a current account.

It provides a secure place for businesses to hold and grow their reserves. The interest rates for these accounts are typically higher than those for standard current accounts, offering an opportunity to accumulate more significant savings over time.

These accounts may come with certain restrictions or requirements, like minimum balance requirements, limits on the number of transactions, or fees for certain services.

Why Use a Business Savings Account

Offering far higher interest rates than current accounts, a business savings account means you can build up a healthy financial buffer against economic downturns or periods of slow business. Most accounts are protected by the Financial Services Compensation Scheme, a government programme that safeguards your savings up to £85,000 if the provider fails. If your savings exceed this limit, it’s wise to divide your funds and open several savings accounts to guarantee full protection.

Always be aware of any terms around how quickly you can access your money in these accounts since those with the highest interest rates often lock your funds away until a fixed term has expired.

If you think you’ll need quick access, choose an account called an ‘Easy Access‘ savings, or something like the Wise Money Market account we review below.

If you don’t need to access the funds, choose a ‘Fixed term‘ from one month up to five years.

A notice account provides a happy medium between these two scenarios, specifying a particular amount of notice (7-180 days) required before you can take your money out.

Do I Need a Business Savings Account?

The main reason to have a business savings account is to earn interest on surplus funds, and separate savings from everyday business funds.

Having a separate savings account can also help in budgeting and financial planning. It allows for a clearer distinction between funds allocated for immediate expenses and those set aside for future projects or emergencies.

However, if your business operates with a narrow margin and frequently requires all available funds for daily operations, the benefits might be limited. In such cases, the potential interest earnings may not justify the possible fees or minimum balance requirements associated with these accounts.

Eligibility for Business Savings Account

Eligibility for a Business Savings Account typically depends on several key factors:

• Type of Business: Your business must be a sole trader, partnership, or limited company. Requirements vary by bank.
• Age Requirement: Account users must be at least 18 years old.
• Documents: You’ll need to provide documents like your business registration, business address, information on owners and directors, and possibly recent financial statements.
• Minimum Balance: Some accounts require a minimum balance to avoid fees or to qualify for better interest rates.
• Credit History: Banks may check the credit history of your business and possibly the personal credit of the owners or directors, especially for newer businesses without an established credit history.

How to Choose a Business Savings Account

Choosing the right Business Savings Account involves several considerations to ensure it aligns with your business’s specific needs and financial goals. Here are key steps to take:

Accessibility of Funds

Having easy access to your funds without facing restrictions or penalties is essential for managing your business’s cash flow efficiently. This includes understanding any limitations on withdrawals or transfers and ensuring the account meets your operational needs for liquidity.

Minimum Balance

Ensuring that your business can comfortably meet any minimum balance requirements is important to avoid fees and qualify for better interest rates or account features. This factor directly influences your cash flow management and savings strategy.

Balancing Interest Rates and Access

When selecting a savings account, consider how the terms for higher interest rates might impact your business. For example, if the best rate requires locking your funds for five years, think about whether the higher interest justifies the lack of access to your money. Assessing this trade-off is vital for a decision that suits your business’s financial planning.

Our Best Easy Access Business Savings Account

Interest Rate (AER)

4.33%

Fees

❎

Minimum Balance

❎

Interests Paid

Monthly

• No Monthly Fees
• User-Friendly
• Competitive Interest Rate

Accessibility

Easy Access

See Deal

More info

Pros

• Quick Application Process
• Flexible Withdrawal Options
• Low Minimum Deposit

Cons

• Limited Account Options
• Interest Rate Fluctuations
• Limited Physical Presence

TrustScore – 4.6 – Excellent

FSCS Protected

Tide’s Instant Saver Account stands out as one of the best business savings accounts on the market for several reasons:

Market-Leading Interest Rate: With a variable rate of 4.33% AER, it is among the highest in the market. But unlike other high-interest accounts, it also has a low barrier to entry and is very easy to set up, access and use.

Ease of Access and Flexibility: You can withdraw your funds at any time without penalties or limits.

Simple and Convenient Management: Opening and managing the account is straightforward simply requires an active Tide Business Account, and the account can be managed entirely online or through the Tide app.

Low Entry Point: Businesses can start saving with as little as £1.

Security and Protection: Tide’s Instant Saver Account is protected by the Financial Services Compensation Scheme (FSCS), covering up to £85,000, giving you peace of mind.

Our Best Money Market Business Savings Account

Interest Rate (AER)

4.67%

Fees

£45 + 0.56% p/a

Minimum Balance

❎

Interests Paid

Daily

• Competitive Rates
• Interests Added Daily
• FSCS Protected

Accessibility

Easy Access

See Deal

More info

Pros

• Multi-Currency
• Easy Set-Up
• Software Integration

Cons

• No Physical Branches
• Deposit Restrictions
• Limited Financial Products

TrustScore – 4.2 – Great

FSCS Protected

Wise Business Savings has earned our recommendation as one of the best places for investing business savings. Its attractive interest rates, ranging up to 4.67%, are highly competitive, especially when compared to traditional savings accounts.

Unlike conventional savings accounts, Wise doesn’t require a minimum deposit, allowing businesses of any size to start saving immediately.

Wise operates as a money market fund, meaning your savings are invested in short-term, easily accessible debt investments with Black Rock. The account offers daily interest, which is added every working day and is instantly accessible, enhancing its appeal for businesses seeking both growth and liquidity.

You do have to have a Wise Business account to take advantage of this, which comes with some fees, but overall they have launched a savings account with a lot to recommend it.

Aldermore Easy Access Business Savings

Aldermore offers three secure business savings accounts offering some of the best interest rates in the UK.

These accounts feature consistently high-interest rates, straightforward account management, and incur no fees or charges. They are also FSCS protected, ensuring your money is safe up to £85,000.

Opening an account with Aldermore is convenient, as you can apply online at any time that suits you.

The bank has earned an excellent rating from customers on Trustpilot and has been recognised with awards from Moneynet and Savings Champion in 2022.

Our Best Fixed Term Business Savings Account

If you’re a business looking to invest a large amount of money over a relatively long period and want to access outstanding AER, then the Virgin Money 24-Month Business Term Deposit is an excellent choice.

First and foremost, the Virgin Money 24-Month Business Term Deposit guarantees a fixed return on your investment. This lets you know upfront what your returns will be, making financial planning easier and more precise. Having this level of certainty can be a significant advantage in a fluctuating market.

The Virgin Money 24-Month Business Term Deposit offers an attractive 4.10% AER. This rate is annualised, meaning it shows how much you would earn in a year if you invest the money and reinvest the interest. The higher the AER, the better the return on your investment.

The 24-month term is ideal for businesses looking to invest for a relatively long period but not tie up their capital indefinitely. This balance makes it possible to earn substantial interest while still having access to your funds in a relatively short timeframe.

The Virgin Money 24-Month Business Term Deposit application process is straightforward and can be done online. This makes it convenient for busy business owners who value their time.

No monthly fees are associated with this account, meaning more of your money goes toward earning interest.

Virgin Money’s 24-month term deposit also allows additional deposits during the term, which can further enhance your interest-earning potential.

Best Base Rate Tracker Savings Account

United Trust business savings tracks the Bank of England Base Rate, currently at 5.25%. This means that the interest rate has the potential to increase in line with any Bank of England Base Rate changes, a feature that is seldom found in many other notice accounts.

The Bank’s proactive approach ensures that interest rate changes are communicated to you within three days following a Bank of England Base Rate change through either a letter or an email, providing transparency and trustworthiness.

The United Trust Bank also offers ease of account management. With options to open your business accounts either by post or online, you can start growing your savings in the way that suits you best. It also allows a maximum deposit of a staggering £1 million per account, making it an excellent choice for businesses aiming for high returns on large sums.

Moreover, the bank provides a clear projection of your savings growth. For instance, with a deposit of £5,000, the estimated balance after 12 months would be £5,225.00, assuming the Bank of England Base Rate remains at 4.50%. This gives you a reliable estimate of your potential growth while being transparent about the factors involved.

The withdrawal process is well-structured and easy to follow. To access your funds, you only need to provide UTB with a 120-day notice for withdrawal, which can be easily done by email or through their website’s contact form.

Lastly, their policy ensures that balances that fall below £5,000.00 will cease to attract interest, encouraging account holders to maintain a healthy balance and promoting effective savings habits.

HSBC Business Money Manager Savings Account

HSBC’s Instant Access Savings Account, also known as the Business Money Manager is straightforward to open and comes with no restrictions on how many times you can access your savings, meaning you have complete control over your money. Bear in mind that if you withdraw funds, your interest rate may change.

The Business Money Manager offers an interest calculation on a daily basis, with monthly or quarterly payments, ensuring you earn optimal returns on your savings.

Another distinguishing feature of this account is that you can transfer funds to your HSBC current account without any charges if you have one. This can be particularly advantageous for managing regular expenses or handling unexpected bills.

While the account doesn’t incur monthly fees, be aware that cash and cheque transaction fees may apply, which are detailed in the Business Price List.

Monzo Instant Access Savings Pot

The Monzo Business Savings Account stands out due to its user-friendly interface, easy accessibility, and versatile features. It’s actually just a savings pot within their main current account rather than a dedicated savings account, but it’s a useful way of earning up to 1.60% AER interest (variable) on your spare money.

Monzo’s platform is designed with user experience in mind. The app’s clean, intuitive interface lets businesses easily track their income, expenditure, and savings goals in real-time.

The Monzo Business Savings Accounts offer complete flexibility regarding deposits and withdrawals. There are no restrictions on the number of transactions; deposits can be made instantly through the app. This particularly benefits small businesses, where cash flow can often be unpredictable.

Barclays Business Savings Account

Barclays Business Savings Account offers free, unrestricted withdrawals. Unlike many other banking institutions, which often impose limits or fees on the number of withdrawals, Barclays also allows its Business Savings Account holders to make as many withdrawals as they need without incurring any charges.

Another impressive feature of the Barclays Business Savings Account is its tiered savings rate. This structure allows businesses to earn higher interest rates as their savings grow, incentivising companies to save more. The more money you save, the more you earn – an appealing proposition for any business. This feature is particularly valuable for large businesses, which often have substantial savings that they can leverage to earn significant interest.

Moreover, Barclays pays out these interest earnings on a quarterly basis, a relatively frequent schedule compared to many other banks.

Lloyds Bank Business Savings Accounts

Lloyds offers a range of business savings accounts, including Fixed Term Deposits with interest rates between 2.02% and 4.37% AER, where funds are locked away for a chosen period ranging from 3 months to 2 years, requiring a minimum deposit of £10,000.

Their Notice Accounts offer interest rates from 2.63% to 4.08% AER, allowing withdrawals with either 32 or 95 days notice, also with a minimum £10,000 deposit.

For more flexible needs, the Instant Access Account provides an interest rate between 1.31% and 1.92% AER, offering immediate access to funds with just a £1 minimum deposit. Each account type is designed to cater to different business needs, from securing a fixed interest rate to requiring flexible access to funds.

NatWest Business Savings Accounts

NatWest is an excellent choice for businesses seeking a wide range of accounts to manage their finances effectively. One of the notable advantages of NatWest is that many of their business accounts do not require a minimum or maximum balance. This flexibility allows businesses to maintain their funds according to their specific needs and circumstances.

Their instant access account provides interest rates between 1.46% and 1.92% AER, allowing immediate withdrawal without notice and varying interest rates depending on the deposit amount, which can be managed through their mobile app, online, or by phone.

For those seeking higher interest, the 35-day notice account offers a variable rate of 3.25% AER, requiring notice before withdrawal but imposing no balance limits.

The highest rate comes with the 95-day notice account at 4.25% AER, again with no balance restrictions but requiring longer notice for access. Each account is designed for flexibility and ease of management, catering to businesses looking for either immediate access or better returns on their savings.

What Should I Look for When Comparing Business Savings Accounts?

When comparing business savings accounts, there are several factors to consider to ensure you choose the one that best suits your business needs:

• Interest Rate: Look for competitive interest rates. Check if the rate is fixed or variable and if it decreases after an introductory period.
• Fees: Be aware of any charges, like maintenance or transaction fees, and penalties for early withdrawals or not maintaining a minimum balance.
• Access to Funds: Evaluate how quickly and easily you can withdraw money. Some accounts have immediate access, while others require notice.
• Deposit Requirements: Check if there’s a minimum initial deposit or balance requirement that you need to meet.
• Frequency of Interest Payment: Consider how often interest is paid – monthly, quarterly, or annually. More frequent payments can benefit you due to compounding.
• Online and Mobile Banking: Ensure the bank offers a comprehensive online and mobile banking platform for convenient 24/7 access and fund management.
• Customer Service: Good customer service is important. Research the bank’s reputation for customer support.
• Financial Health of the Bank: Ensure the bank is financially stable. In the UK, the Financial Services Compensation Scheme protects up to £85,000 in a UK-regulated bank.

Are there Fees for Business Savings Accounts?

They typically offer much higher interest rates than standard business current accounts and don’t tend to charge a monthly fee. However, it’s essential to be aware of other potential fees that might apply. These can include transaction fees for exceeding the permitted number of withdrawals, fees for electronic transfers, and possibly penalties for not maintaining a minimum balance. Some accounts may also charge for incoming or outgoing wire transfers.

What are the Different Types of Business Savings Accounts?

In the UK, there are several types of business savings accounts designed for different needs.

Easy Access Business Savings Accounts

These accounts offer unrestricted deposit and withdrawal access, suitable for frequent access to savings. However, they typically have lower interest rates compared to other account types.

Notice Business Savings Accounts

These require you to notify the bank before withdrawing funds, usually between 30 to 120 days in advance. They’re ideal if you don’t need regular access and often provide higher interest rates than easy-access accounts.

Fixed Rate Business Savings Accounts

Suitable for businesses that can lock away funds for a set period (1-5 years), these accounts offer a fixed interest rate for the term. The downside is limited access to your funds during the term without penalties.

Regular Business Savings Accounts

Designed for businesses able to make consistent monthly deposits. These accounts may offer bonus interest rates for regular deposits and no withdrawals.

Client Deposit Accounts

Ideal for businesses like law firms or property agencies that manage client funds. These accounts keep client money separate from business funds.

Business ISAs (Individual Savings Accounts)

These accounts allow tax-free interest earnings up to a certain limit each year and can be easy access, notice, or fixed rate, catering to various needs.

Pros and Cons of a Business Savings Account

Why Should I Choose a Business Savings Account Instead of a Personal One?

For limited companies, it’s crucial to maintain a clear distinction between company and personal finances, as the business is a legally separate entity. Mixing funds in a personal account could result in tax and legal issues. A business savings account ensures financial transactions are correctly attributed to the business, facilitating transparent accounting and tax filing.

For sole traders, the distinction isn’t as rigid, as the business and individual are legally the same. However, using a business account, even in this scenario, is advisable for clearer financial management and to aid in distinguishing personal expenses from business expenses. This separation can simplify accounting processes and aid in better financial planning for the business.

Are Business Savings Accounts Protected by the FSCS?

Yes, business savings accounts in the UK are generally covered by the Financial Services Compensation Scheme (FSCS). This means that, similar to personal savings accounts, deposits in business savings accounts are protected up to £85,000 per financial institution. In the event of a bank failure, the FSCS aims to compensate account holders, including businesses, up to this limit. However, it’s important to verify this coverage for each specific account, as there may be exceptions based on the bank’s specific terms and conditions or the type of account.

Do I pay tax on business savings accounts?

In the UK, businesses do pay tax on the interest earned from Business Savings Accounts. The tax treatment depends on the type of business structure you have:

1. Sole Traders and Partnerships: If you operate as a sole trader or a partnership, the interest earned is considered part of your business income. It should be reported on your Self Assessment tax return. The tax rate you pay will depend on your total income and the applicable income tax band.
2. Limited Companies: For limited companies, interest earned is treated as business income and is subject to Corporation Tax. The current Corporation Tax rate in the UK will apply to this interest income.

FAQs about Business Savings