What are the Best Business Savings Accounts in the UK?

Business savings accounts are an ideal way to grow your capital. Offering superior interest rates compared to personal savings, they also come with features tailored to business requirements, such as online transfers and deposits.

Anyone can get an account, though be aware that some accounts are only available to specific business sectors.

But which are the best savings accounts available to UK businesses?

In this article, I will delve into the pros and cons and compare the top business savings accounts available in the UK.

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.

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.

The Best Business Savings Accounts Interest Rates

Business Savings Accounts: Our 9 Best Choices

(1) Overall Best Business Savings Account – Wise for Business

Wise Business Savings has earned our recommendation as one of the best places for investing business savings, with its attractive interest rates, ranging up to 5.11%, which are highly competitive, especially when compared to traditional savings accounts. This makes it an excellent choice for businesses looking to maximise their savings growth.

Unlike conventional savings accounts, Wise doesn’t require a minimum deposit, allowing businesses of any size to start saving immediately. This flexibility is particularly beneficial for small and medium-sized enterprises (SMEs) or startups that might not have large amounts of capital initially.

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.

In summary, Wise Business Savings Account offers:

✅ Highly Competitive Interest Rates

✅ No Minimum Deposit Requirement

✅ Daily Interest Accrual and Immediate Accessibility

✅ Multi-Currency Options

✅ FSCS Protected

(2) Runner Up Best Business Savings Account – Aldermore Easy Access

Aldermore offers three secure business savings accounts offering some of the best interest rates in the UK. You can find more info about their rates on their rate comparison tool.

You can open a personal savings account with a minimum deposit of £1,000 and a business savings account with £1 million.

With Aldermore, you can open a money market account for improved return potential compared to typical corporate checking or savings accounts.

In addition to a variable interest rate, the Easy Access Account allows for easy deposit and withdrawal at any moment. Two distinct fixed-rate business accounts are available, with term lengths varying from 60 days to 5 years. Access to your funds is granted in one of the accounts but not in the other.

✅ Higher Rates that the Competition

✅ Specialised in Financing SMEs

✅ Money Market Account Available

(3) Best Instant Access Business Savings Account – HSBC Business Money Manager

HSBC’s Instant Access Savings Account, also known as the Business Money Manager, stands out as one of the finest offerings in the market, packed with a wealth of features designed to cater to diverse financial needs. This particular savings account is highly recommended if you’re looking to set aside separate funds and want quick and easy access to your savings whenever you require.

One of the remarkable aspects of this savings account is the ease of managing it. It’s straightforward to open, making it an excellent option for those who value simplicity. Moreover, with no restrictions on how many times you can access your savings, you have complete control over your money. Bear in mind that if you withdraw funds, your interest rate may change.

This flexibility, combined with the ability to access your savings online, via telephone, or in the branch, underscores its appeal.

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. However, this account truly shines when you leave your savings untouched, allowing your money to work harder for you and garner more interest.

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.

What sets this savings account apart is that it doesn’t require you to have an existing HSBC current account. This flexibility enables anyone to benefit from its advantageous features, whether or not they’re already a bank customer.

✅ Unrestricted Withdrawals

✅ No Maximum Investment

✅ Interests can be Paid Monthly, Quarterly or Annually

✅ Doesn’t Require an HSBC Current Account

(4) Best Fixed Term Business Savings Account – Virgin Money 24-Month Business Term Deposit

Min. Balance	Max. Balance	Min. Monthly	Max. Monthly	Max. AER	FSCS Covered	Apply
£100.000	£25M	N/A	N/A	4.10%	✅	Visit Virgin Money

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.

✅ Guaranteed Return of Up to 4.10% AER

✅ Additional Deposits Allowed

✅ No Monthly Fee

Visit Virgin Money

(5) Best Notice Business Savings Account – United Trust Bank

Min. Balance	Max. Balance	Min. Monthly	Max. Monthly	Max. AER	FSCS Covered	Apply
£5.000	£1M	N/A	N/A	4.50%	✅	Visit UTB

This account is exceptional because it tracks the Bank of England Base Rate, currently at 4.50%. 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.

Visit United Trust Bank

(6) Best Digital Business Savings Account – Monzo Instant Access Savings Pot

The Monzo Business Savings Account stands out due to its user-friendly interface, easy accessibility, and versatile features.

Monzo was founded in 2015 and has quickly established itself as a leader in the FinTech space. Recognised for its pioneering role in digital banking, Monzo provides a multitude of banking services tailored specifically to the needs of small businesses, including their comprehensive Business Savings Account.

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.

As a digital bank, Monzo is accessible from anywhere, at any time, via its mobile app. This allows businesses the freedom to manage their finances without the constraints of traditional banking hours or physical locations.

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.

Monzo provides a suite of budgeting and analytics tools that can help small businesses better manage their finances. These tools offer insights into spending habits, track expenses, and allow for setting savings goals, all of which can lead to better financial decision-making.

✅ User-Friendly App

✅ Complete Withdrawal and Deposit Flexibility

✅ Accessible Budgeting and Analytical Tools

(7) Best Business Savings Account for Large Businesses – Barclays Business Savings Account

Barclays Bank is a world-renowned financial institution with a rich history of over 300 years. The bank has proven its resilience, reliability, and dedication to serving its clients’ needs over the centuries, qualities necessary for any business’s banking partner. The bank’s stability makes it a secure choice for businesses wanting to park large sums of savings.

Barclays Business Savings Account offers a wide array of custom-designed features to suit large businesses. One of the most appealing features is its free, unrestricted withdrawals. The ability to withdraw savings freely is crucial for businesses, as it allows for operational agility. This is particularly important for large companies, which may need to make substantial payments or investments at short notice.

Unlike many other banking institutions, which often impose limits or fees on the number of withdrawals, Barclays allows its Business Savings Account holders to make as many withdrawals as they need without incurring any charges. This flexibility is a considerable advantage in today’s rapidly changing business environment, providing businesses the liquidity they need to react quickly to opportunities and challenges.

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. This regular payout provides businesses with an additional source of cash flow every few months, which can be used to fund operations, reinvested, or further saved.

✅ Up to £50.000.000 Balance

✅ Free and Unrestricted Withdrawals

✅ Tiered Savings Rates

✅ Quarterly Paid Interests

(8) Business Savings Account for Flexibility – Lloyds Bank Business Savings Accounts

Lloyds Bank emerges as the clear choice when looking for a banking institution that champions flexibility and customisation in its service offerings. With its innovative approach to business banking, Lloyds Bank provides savings account options that can be tailored to your specific business requirements, no matter the scale of your operation.

One of the hallmarks of Lloyds Bank’s commitment to flexibility is the ability for businesses to customise their savings accounts according to their revenue levels. Whether your deposit is as little as one pound or as large as five million, you have an account option. This broad deposit range ensures that all businesses, regardless of their size or financial standing, can find a suitable savings account solution.

In a bid to accommodate the varying financial strategies of different businesses, Lloyds Bank offers a suite of account types, ranging from no-notice checking to fixed-term savings. These accounts feature variable and fixed rate options, with fixed maturities spanning from one day to three years.

Their rapid access account, which requires a minimum deposit of £1 and allows for a maximum of £5,000,000, offers a variable interest rate. This type of account is designed to give you quick and easy access to your funds whenever needed.

If you’re willing to commit to a set term, you can benefit from the bank’s Term Deposit account. With this account, the interest rate is locked in for a specified period ranging from one day to three years.

The bank’s 32-day notice account is an attractive choice for those keen on keeping track of market trends. This account’s interest rate fluctuates in alignment with the Bank of England’s base rate, giving your business an opportunity to capitalize on positive market shifts.

✅ Largest Retail Bank in the UK

✅ Flexibility and Customisation

✅ From £1 to £5M in Savings

(9) Business Savings Account for Client Deposits- NatWest 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.

Another compelling feature NatWest offers is the daily interest payment on many of their accounts. This means businesses can earn interest on their savings daily, maximizing their potential returns. It’s a valuable benefit to help businesses grow their funds over time.

NatWest provides various account options to cater to different business requirements.

The Business Reserve account allows businesses to access their funds instantly while earning interest. This account is commonly used when businesses have surplus cash and want to improve their returns without sacrificing accessibility.

NatWest offers the Liquidity Manager Notice Account for businesses looking to lock away funds for a specific period and earn higher interest rates. This account allows businesses to earn more interest by locking their funds away for either 35 or 95 days. It is an ideal choice when businesses have surplus cash that they don’t need immediate access to.

NatWest also offers the Treasury Reserve account, which is suitable for businesses that want to save for longer periods to achieve even greater returns. With fixed interest rates linked to the London money market, businesses can watch their savings grow steadily. Although early withdrawals are not permitted, this account provides certainty regarding the interest earned on savings.

For businesses managing third-party funds on behalf of clients, NatWest provides the Client Deposit Manager account. This account offers the convenience of instant access to funds and allows businesses to earn interest on their client’s money. It is commonly used when efficiently managing separate client accounts or consolidating funds into one.

Moreover, NatWest offers the Client Account Manager a new automated payments tool designed for regulated companies. It provides a secure way to manage third-party funds, streamline reconciliation processes, and meet regulatory obligations effectively.

✅ Earn Interest on Your Clients’ Money

✅ Interests Paid Daily on Many of the Accounts

✅ No Minimum or Maximum Balance on Many of the Accounts

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.

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 Covered 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.

FAQs about Business Savings