Best Business Savings Accounts in 2024 | Up to 5.16%
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19 min read
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Choosing the best business savings account for your company’s needs could be an important step towards better money management. But, with so many options available, you might find it time-consuming and difficult to research them all.

Whether you need fixed returns or flexible withdrawals, this article aims to help you find the best business savings account for your financial goals.

Pros and Cons of Having a Business Savings Account

Pros
  • Earn Interest: Money held in a business savings account earns interest over time so your business assets increase.
  • Range of Accounts: Different types of business savings accounts are available (for instance, instant access, notice or fixed term), catering to a wide range of needs.
  • Security: Business savings accounts are typically securely held at banks or other regulated financial institutions and benefit from FSCS protection in case a provider collapses.
  • Separate Funds: Keeping your business savings in a different account than your everyday operating funds could help you stay organised and avoid mixing business and personal finances.
  • Financial Planning: A dedicated savings account allows you to plan for future expenses or opportunities like new equipment or expansion.
  • Risk Management: Business savings accounts provide a low-risk option for managing excess cash flow. Keeping some of your funds in a liquid and secure savings account protects your business from unexpected cash flow disruptions, market volatility, or unforeseen circumstances that could impact your revenue streams.
  • Building Creditworthiness: Lenders and creditors may view businesses with adequate savings as less risky and more reliable borrowers, potentially improving your access to financing. This may mean you are offered favourable loan terms when you need to borrow to grow your business.
Cons
  • Lower Interest Rates: The interest rates available on business savings accounts might not be as competitive as you could get on an equivalent personal savings account. You might able to earn more by investing your business’s surplus cash, but this comes with the risk of capital loss.
  • Fees: Some business savings accounts may have costs such as monthly maintenance or transaction fees which can reduce the overall return on your savings.
  • Inflation Risk: If the interest rate on your business savings account is lower than the rate of inflation, the real value of your savings will decrease over time.
  • Opportunity Cost: By keeping your money in a business savings account, you may miss out on potentially higher returns from other investment opportunities. However, investment returns are not guaranteed.
  • Tax Considerations: Interest earned on business savings accounts is typically taxable as income. You’ll need to report any interest you earn from savings on your company tax return.

What are the Best Savings Accounts for Businesses? The Verdict in 60s

The best business savings account for you will depend on how much you want to save and how frequently you need to access your savings.

We’ve looked across the market at fixed-term, easy access and notice accounts to round up our top picks.

The Allica Bank Instant Access Savings Pot offers a competitive variable interest rate of 4.33% AER, ideal for businesses looking for flexible access to their funds while earning high amounts of interest.

However, this is not a savings account. It is an instant-access savings pot available through Allica Bank’s Business Rewards Current Account, but it has all the bells and whistles of a savings account.

The Tide Business Savings Account gives greater flexibility, allowing you to access your savings whenever you like, with no limits or fees on withdrawals.

With a variable interest rate of 4.33% AER and a minimum balance of £1, it could work well for businesses with restricted cash flow. New Tide customers that open an account from 1st October will also have their interest rate boosted by 0.75% until 31st March 2025. However, you must be a Tide business bank customer to apply for the savings account.

The United Trust Bank Business 180-Day Notice Base Rate Tracker Account is linked to the Bank of England base rate, so it’s currently paying 5% AER (variable).

Unlike a fixed-term savings account, you can withdraw after giving 180 days’ notice, giving you some degree of flexibility for unexpected expenses. However, there’s currently no online banking facility, which may make managing your account inconvenient.

Wise Interest offers a competitive alternative to traditional savings accounts with an investment fund which invests in high quality, short-term debt securities.

While these are fairly low risk investments as they are backed by governments, they still come with an element of risk. You may also have to pay tax on any gains. There’s no minimum or maximum balance, and Wise Interest offers a high variable interest rate of 3.44% to 5.06%, depending on which currency you hold your savings in.

The account is instant access, and there’s an annual fee. You’ll need a Wise Business account to access this product.

Who should consider a business savings account:

  • Businesses with surplus cash: Companies that often have excess cash sitting idle can make their money work harder by earning as much interest as possible.
  • Firms with financial stability: Businesses that have covered their immediate expenses and have predictable cash flow patterns are well suited to take advantage of savings accounts.
  • Entrepreneurs planning for future expenses: Saving for planned future expenditures, such as expansion or equipment upgrades, can be more effective with the added interest from these accounts.

Who should not consider a business savings account:

  • Businesses with high-frequency transactions: If your business requires frequent access to its funds for daily operations, the typical transaction limits seen in some types of savings accounts might be too restrictive for your needs.
  • Start-ups with fluctuating cash flow: New businesses or those experiencing variable cash flow might find the limitations on withdrawals and the potential fees for not maintaining a minimum balance challenging.

All Our Best Business Savings Accounts at a Glance

Account NameTypeInterest RateOur RatingLearn More
Allica Bank’s Instant Access Savings PotEasy Access4.33% AER (variable)4.4/5★Apply now
Tide’s Business Savings AccountEasy Access4.33% AER (variable)4.3/5★Apply now
Monzo’s Business Instant Access SavingsEasy Access1.6% AER (variable)4.3/5★Apply now
Wise InterestInvestment FundUp to 3.44% – 5.06% (variable)4.2/5★Apply now
Aldermore’s 1-Year Fixed Rate Business Savings AccountFixed-Rate4.00% AER (fixed)4.1/5★Apply now
United Trust Bank’s Business 180-Day Notice Base Rate TrackerNotice5% AER (variable)3.7/5★Apply now
Virgin Money’s 1 Year Business Fixed Rate Savings AccountFixed-Rate4.70% AER (fixed)3.5/5★Apply now
NatWest’s 95-Day Liquidity ManagerNotice3.75% AER (variable)3.3/5★Apply now
HSBC’s Business Money Manager Easy AccessEasy Access1.94% – 1.96% AER (variable)3.2/5★Apply now
Lloyds Bank’s 95-Day Notice AccountNotice3.88% AER (variable)3.2/5★Apply now
Barclays’ Business Premium AccountEasy Access1.51% – 1.96% AER (variable)3.1/5★Apply now

Allica Bank Instant Access Savings Pot

Allica Bank’s Instant Access Savings Pot
Interest: 4.33% AER (variable)Term: UnlimitedBalance: £1 to £5 million
Visit Allica Bank

Best For: Businesses seeking flexibility and growth.

Pros

  • Interest Rate: Competitive variable rate of 4.33% AER.
  • No Monthly Fees: Maximise your returns without additional costs.
  • Savings Limit: You can save between £50,000 and £5 million.
  • Account Management: Easily apply and manage your account online through the Allica website.

Cons

  • Withdrawals: Withdrawals can only be made into your linked Allica Business Rewards Account.
  • Customer Support: Available only during business hours via phone, live chat, or online banking​

Read my full Allica Bank Business Savings Account review.

Tide’s Business Savings Account

Tide’s Business Savings Account
Interest: 4.33% AER (variable)Term: UnlimitedBalance: £1+
Visit Tide

Best For: Small businesses and sole traders that want an easy-access account.  

Pros

  • Competitive Interest Rate: Offers a variable interest rate of 4.33% AER.
  • Low Minimum Deposit: You can open the account with as little as £1.
  • No Monthly Fees: Helps minimise costs.
  • Flexible Access: Provides easy access to savings and allows additional deposits whenever needed, plus unlimited withdrawals.
  • Integrations: Can be linked with accounting software like Xero and Sage for streamlined financial management.
  • Account Management: Open and manage the account through the Tide website or mobile app.

Cons

  • Limited Eligibility: Only available to sole traders and limited companies, certain sectors and industries are excluded.
  • Existing Customers Only: You must have an active Tide Business Account to be able to open the savings account.
  • Variable Interest Rate: The interest rate is subject to change, which may affect the returns on savings.
  • App-based Customer Support: Customer support is available primarily through in-app messaging, although there are also email and phone options.

Read my full Tide Business Savings Account review.

Monzo’s Business Instant Access Savings Pot

Monzo’s Business Instant Access Savings Pot
Interest: Up to 1.6% (variable)Term: UnlimitedBalance: Up to £100,00
Visit Monzo

Best For: Sole traders and limited company directors looking for a simple savings option integrated with their Monzo business account.

Pros

  • No Minimum Balance: Start saving with any amount.
  • No Account Fees: Helps businesses save without unnecessary additional costs.
  • Instant Access: Provides instant access to savings without penalties or fees.
  • Account Management: Through the Monzo website or mobile app.
  • Customer Support: Available 24/7 through the mobile app, phone, and email.

Cons

  • Eligibility: Only open to specific business structures.
  • Maximum Deposit: A maximum deposit limit of £100,000 may be restrictive for larger businesses.
  • Interest Rate: The interest rate offered is not the highest available in the market.
  • Additional Fees: Integration with accounting software like Xero, FreeAgent, and QuickBooks requires a Monzo Pro Account costing £5 per month.

Read my full Monzo Business Instant Access Savings Pot review.

Wise Interest 

Wise Interest
Interest: 3.44% – 5.06% (variable)Term: UnlimitedBalance: Unlimited
Visit Wise

Best For: International businesses that want to hold savings in multiple currencies. 

Pros

  • Alternative to Savings Account: Wise Interest isn’t a traditional savings account. Wise has partnered with BlackRock to invest in a fund holding government-guaranteed assets. 
  • Interest Rates: This account offers higher interest rates than typical instant-access savings accounts. Earn up to 4.49% for GBP, 5.06% for USD and 3.44% for EUR-denominated savings.
  • Multiple Currencies: Wise Interest provides an alternative savings option for international companies looking to hold savings in various currencies.
  • Flexibility: Easy access to savings without a fixed term or notice to withdraw.
  • No Minimum or Maximum Balances: Useful for businesses of all sizes.

Cons

  • Investment Risk: As this is an investment product, your capital is at risk.
  • Interest Rate: The interest rate is variable and subject to change depending on the currency held.
  • Fees: Monthly fees range from 0.17% to 0.45%, and annual fund manager fees are 0.10%.
  • Existing Customers Only: Businesses must have a Wise business current account to access the Interest feature, which costs £45 to open.
  • Customer Support: Wise offers customer support primarily through the mobile app.

Read my full Wise Business Savings Account review.

Aldermore’s 1-Year Fixed Rate Business Savings Account

Aldermore’s 1-Year Fixed Rate Business Savings Account
Interest: 4.00% AER (fixed)Term: 12 monthsBalance: £1,000 – £1 million
Visit Aldermore

Best For: Companies wanting a high-paying savings account that can afford to lock money away for a year.

Pros

  • Interest Rate: Competitive interest rate fixed for one year.
  • Rate Guarantee: If interest rates fall within 14 days of account opening, you still get the higher rate you were quoted.
  • No Monthly Fees: Cost-effective for small firms.
  • Customer Support: Via phone, email, and online messaging.
  • Low minimum deposit: Start saving with £1,000.

Cons

  • Limited Access: No access to your funds until the account terms ends.
  • Eligibility: Only open to limited and unlimited companies. Sole traders and LLPs are not eligible.
  • Account Management: Online only, no mobile app.

Read our Aldermore business savings account review.

United Trust 180-Day Notice Base Rate Tracker

United Trust 180-Day Notice Base Rate Tracker
Interest: 5% AER (variable)Term: UnlimitedBalance: £5,000 – £1 million
Visit United Trust

Best For: Businesses with a lump sum they don’t need immediate access to.

Pros

  • No Account Fees: Helps minimise business costs.
  • No Fixed Term: Use the account for as long as you want.
  • Interest Rate: Competitive rate on a product that tracks the Bank of England base rate.

Cons

  • Notice Period: 180 days’ notice for withdrawals or to close the account.
  • Account Management: Only via email, phone and post. Digital banking for business savings customers is coming soon.
  • Variable Rate: The interest rate is tied to the Bank of England base rate, so it is variable.
  • Customer Support: Only available by phone and contact form.
  • Minimum Balance: £5,000 minimum may not suit small businesses.

Virgin Money 1 Year Business Fixed Rate Savings Account

Virgin Money 1-Year Business Fixed Rate Savings Account
Interest: 4.70% AER (fixed)Term: 12 monthsBalance: £1 to £2 million
Visit Virgin Money

Best For: SMEs that want a guaranteed return and can afford to lock money away for a year. 

Pros

  • Interest Rate: Competitive interest rate if you can leave your cash untouched for 12 months.
  • Minimum Balance: Open the account with just £1.
  • Account Management: Apply and manage the account online.

Cons

  • No Early Withdrawals: You can’t add to your savings or take money out until maturity.
  • Eligibility: Only suitable for micro, small, or medium-sized enterprises (SMEs) with less than 250 employees and an annual turnover of less than £42.5m.
  • Account Integration: Existing Virgin Money customers cannot link their savings account with their business current account or the Virgin Money app.
  • Customer Rating: Virgin Money has a ‘poor’ average Trustpilot rating of 2.5 out of 5.

NatWest 95-Day Liquidity Manager

NatWest 95-Day Liquidity Manager
Interest: 3.75% AER (variable)Term: UnlimitedBalance: Unlimited
Visit NatWest

Best For: Businesses that want a simple savings account offering higher rates than easy-access accounts but without a long fixed term.

Pros

  • Interest Rate: Variable interest rate of 3.75%.
  • No Balance Limits: No minimum or maximum balance.
  • Account Management: Via app, online, in-branch, by phone.
  • Customer Support: Available 24/7 online or via WhatsApp.

Cons

  • Notice Period: 95 days’ notice is required; no early withdrawals are allowed. You must give notice in-branch or in writing.
  • Customer Rating: NatWest has a ‘bad’ average Trustpilot rating of 1.4 out of 5.

HSBC Money Manager Easy Access Account

HSBC Money Manager Easy Access Account
Interest: 1.94% – 1.96% AER (variable)Term: UnlimitedBalance: Unlimited
Visit HSBC

Best For: Businesses that want a basic, flexible savings account.

Pros

  • Flexible Savings: No minimum or maximum balance.
  • Unlimited Withdrawals: No limits on withdrawals, although you can earn more interest the longer you leave savings untouched.
  • No Fees: No monthly or annual fees.
  • Account Management: Apply and manage your account online, by phone or in-branch.

Cons

  • Interest Rate: From 1.94% AER to 1.96% AER (variable), depending on your account balance, so not as competitive as other providers.
  • Extra Fees: Cash and cheque deposits may incur additional fees.
  • Customer Reviews: HSBC has a ‘poor’ average Trustpilot rating of 1.8 out of 5.

Lloyds Bank 95-Day Notice Account

Lloyds Bank 95-Day Notice Account
Interest: 3.88% (variable)Term: UnlimitedBalance: £10,000 to £5 million
Visit Lloyds Bank

Best For: Businesses with a large lump sum that can afford to wait a while before accessing their savings.

Pros

  • Interest Rate: Decent variable interest rate of 3.88% AER, interest paid daily.
  • No Fees: No fees or charges associated with this account.
  • No Fixed Term: Use the account for as long as you want.
  • Account Management: Open and manage the account online or by phone.

Cons

  • Notice Period: 95 days’ notice for withdrawals.
  • Minimum Balance: Requires a minimum balance of £10,000.
  • Minimum Withdrawal: Minimum withdrawal in a single transaction is £10,000.
  • Account Management: Account can be opened online but only managed by email or phone.
  • Eligibility: Businesses must have an annual turnover below £25m million to apply.
  • Customer Rating: Lloyds Bank has a ‘bad’ average Trustpilot rating of 1.7 out of 5.

Barclays Business Premium Account

Barclays Business Premium Account
Interest: 1.51% – 1.96% AER (variable)Term: UnlimitedBalance: Up to £50 million
Visit Barclays

Best For: Businesses which prioritise flexibility over interest rates.

Pros

  • Flexible Access: No notice period or penalties to access your cash. Unlimited deposits and withdrawals.
  • No Fees: No account fees or charges associated with this account.
  • Account Management: Online, via phone or in-branch.
  • High Maximum Balance: Up to £50m, and no minimum balance.
  • Customer Support: 24/7 via multiple channels including social media and Apple Messages.

Cons

  • Interest Rate: Interest rates range between 1.51% and 1.96% AER, depending on your account balance, so not the best rate available market-wide. You must save at least £10m to access the highest rates. Interest paid quarterly.
  • Customer Rating: Barclays has a ‘bad’ average Trustpilot rating of 1.4 out of 5.
  • No Online Application: You can only open this account by phone.

Methodology

What is a Business Savings Account?

A business savings account is a bank account specifically designed for companies to park their excess cash and earn interest on it.

Instead of keeping large amounts of money in your business current account, you can transfer it to your savings account so it works harder.

Separating your everyday working capital from your excess cash could make it easier to keep track of your money and avoid accidentally spending what should be reserved for emergencies or future investments.

One of the main benefits of a business savings account is that it allows your company to earn interest on the money you deposit. Your savings account provider pays you a small percentage of interest on the balance in your account, helping your savings grow and compound over time.

Several types of business savings accounts are available, and restrictions or conditions may be attached, including whether and when you can withdraw, and the minimum balance you must maintain. 

How to Choose the Best Business Savings Account

Choosing the best business savings account can be confusing. 

Account providers understandably give a lot of information about their savings products, but the sheer volume of information makes comparing accounts overwhelming. 

If you want to find the best business savings account for your company, this is what you should focus on:

  1. Compare Interest Rates: The annual equivalent rate (AER) tells you how much interest you’ll earn on your savings over one year, including compounding. The higher the AER, the more growth you will see. 
  2. Costs: Common fees include monthly maintenance fees, transaction fees, excess withdrawal fees, and minimum balance fees. Some accounts waive fees if you maintain a minimum balance or meet other requirements.
  3. Term of Account: A fixed-term account may offer higher returns if you can afford to set aside funds for a fixed period without needing access. However, an open-ended instant-access account may be more suitable if you require flexibility and access to your funds anytime. For something in between, a notice account requires you to request a withdrawal a certain number of days in advance.
  4. Accessibility: While a business savings account is meant for saving, you should still be able to withdraw money when needed. Look at how you can manage your account and make withdrawals, including whether there is an app, online banking or in-branch services.
  5. Minimum Balance Requirements: Some business savings accounts require a minimum opening deposit or ongoing balance to avoid fees or qualify for a higher interest rate. Evaluate your company’s cash flow and choose an account with a minimum balance requirement that you can comfortably maintain.
  6. Withdrawal Limitations: Evaluate your business’s cash flow needs and consider whether the withdrawal limitations align with how you plan to use the account. If you need frequent access to your funds, choose an account with more flexible withdrawal options or higher withdrawal limits.
  7. Interest Frequency: Accounts usually pay interest monthly, quarterly, or annually, with some allowing you to choose your preferred option. 
  8. Bank Reputation: Look for a bank or financial institution with a strong record on security and customer service. Consider factors such as size, longevity, and customer reviews.
  9. FSCS Protection: Ensure the bank is covered by the Financial Services Compensation Scheme (FSCS). This scheme protects your deposits up to £85,000 per person per institution in case of bank failure, providing added security for your business savings.

The Types of Business Savings Accounts

There are three main types of business savings accounts to choose from.

Understanding the features and limitations of each account type can help you choose the most suitable option for your business’s financial objectives and cash flow requirements.

Instant Access Business Savings Account

As the name suggests, instant or easy-access business savings accounts allow you to deposit and withdraw money whenever you want without penalties or restrictions. 

These business savings accounts typically offer lower variable interest rates than others because of their flexibility.

They’re best used for businesses with limited cash flow and may need to access their savings frequently for operational expenses, emergencies or unexpected costs. 

Notice Business Savings Accounts

Notice business savings accounts require you to give your provider advance notice, ranging from a few days to several months before you can withdraw money without penalties. 

You’ll usually be offered a higher variable interest rate than an instant access business savings account but a lower rate than a fixed-term account. 

Notice business savings accounts are ideal for businesses that want to earn a higher rate on their savings while maintaining some degree of flexibility to access funds with prior notice. 

Fixed-term Business Savings Accounts

With a fixed-term business savings account, you agree to deposit a lump sum in your account for a set period, known as the term or maturity period, which could range from a few months to several years. 

Withdrawals before the end of the term may result in penalties or loss of interest.

In return for locking your money away, you’ll often get a higher fixed interest rate than other accounts. The fixed rate means you can easily predict the growth of your savings. The longer the term, the higher rate you’ll usually get.

Fixed-term business savings accounts are only suitable for businesses with surplus funds that can be set aside untouched for a specific period. 

How Business Savings Accounts Work

A business savings account works in a similar way to a personal savings account. 

When you open a savings account, you transfer money from your business’s current account as a lump sum or regular payments. 

Once your money is in the account, the bank pays you interest on the balance. The interest rate may be fixed or variable, and it’s typically compounded, meaning you earn interest on both your original deposit and any interest you’ve already earned.

Interest is usually calculated daily or monthly and credited to your account periodically (e.g. monthly or annually). The amount of interest you earn depends on the account’s interest rate, the amount of money you have in the account, and how long you keep it there.

Most business savings accounts offer withdrawal to a nominated business current account. There may be restrictions on the number of withdrawals or transfers allowed monthly without incurring fees.

If you have a notice savings account, you’ll have to inform your provider of your intention to withdraw a specific amount of time before the request can be processed. 

If you have a fixed-term account, you won’t be able to withdraw until the term of your account has passed and your account has matured. 

How to Open a Business Savings Account

Opening a business savings account is relatively straightforward, taking a few hours to weeks.

  1. Begin Your Application: Depending on your provider, you may be able to apply for a business savings account online, by post or in person at a branch. 
  2. Provide Company Information: During your application, you will be asked to provide information about your business and all owners, partners, directors and authorised signatories. These details may include contact information, annual turnover, business structure and registration.
  3. Verification: Your provider will use your information to verify your business and identity. It may request further documentation, including a valid UK passport or driver’s licence, a utility bill dated within the last three months, proof of source of funds, and registration documents. 
  4. Account Opened: After completing the necessary checks, your provider will confirm that your account has been opened.
  5. Deposit Funds: You’ll need to transfer funds into the business savings account to get it started. Depending on your provider, you may be given a deadline to do this and a minimum initial deposit amount. Failure to do so may result in your account being closed.

Can I Switch My Business Savings Account? 

Yes, you can switch your business savings account in the same way as you can change where you keep your personal savings.

You can transfer money manually, or you may be able to arrange a direct transfer between the two accounts.

It’s worth noting that your old business savings account may have withdrawal restrictions, including when and how much you can transfer. 

If you have a fixed-term business savings account, you must wait until your account reaches maturity before requesting a withdrawal. 

Alternatively, if you wish to switch to a different account type with the same bank or financial institution, your provider may be able to do this for you. 

Once your money has been transferred to your new business savings account, you can close your old account if you no longer wish to use it. Check your provider’s closure procedures and any notice you must provide. 

Remember to update any automatic payments linked to your old account to avoid interruptions. 

FAQs about Business Savings

A business savings account provides a secure place to store your company’s funds, allows you to earn interest on your savings, and demonstrates financial stability to lenders.

However, you should consider factors such as interest rates, fees, and alternative investment opportunities to ensure it aligns with your business’s financial goals and needs.

Using a personal account for your business is generally not recommended due to potential complications. Mixing personal and business finances can make accounting and tax reporting more challenging and may not comply with legal or regulatory requirements.

Personal savings accounts may also lack features tailored to business needs, such as invoicing capabilities or integration with accounting software.

Yes, your business can have multiple savings accounts, each serving different purposes or goals. For example, you might have one savings account for taxes, another for emergencies, and a third for specific projects or investments.

Withdrawal flexibility in business savings accounts varies widely.

Some accounts offer easy access with no penalties for withdrawals, ideal for businesses needing frequent access to funds. Others, like notice accounts or fixed-term accounts, restrict access, requiring notice or keeping funds locked away for a set period. These accounts might offer higher interest rates in exchange for limited access.

Minimum balance requirements can affect a business’s liquidity. Accounts with high minimum balance requirements might offer higher interest rates but can tie up funds that might be needed for operational expenses.

It’s crucial to choose an account with a minimum balance that aligns with your business’s cash flow and savings goals.

Yes, business savings accounts in the UK are generally protected by the Financial Services Compensation Scheme (FSCS). This scheme covers up to £85,000 per business, per financial institution, in the event of a bank failure.

However, it’s important to verify that the bank is FSCS-protected before opening an account, as not all financial institutions are covered.

Many business savings accounts can be linked to accounting software, allowing for seamless integration of financial data.

This feature helps in efficient financial management and real-time tracking of savings. However, the availability of this feature varies by bank and account type.

If your business savings exceed the FSCS protection limit of £85,000 per financial institution, the excess amount is not protected under the scheme.

In the event of a bank failure, you could potentially lose any amount over £85,000. Diversifying savings across different financial institutions can mitigate this risk.

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:

Limited Companies: Interest earned by limited companies is treated as business income and is subject to corporation tax.

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.

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