Our Verdict on Redwood Bank Business Savings
If you can set the cash aside, Redwood is one of the better-paying homes for a planned business reserve: real bank rates up to 4.25% AER on the two-year bond, no fees, and FSCS cover on its own licence rather than a shared pool.
The trade-off is access. There’s no easy-access account at all, every product ties your cash up by notice period or fixed term, and the £10,000 minimum shuts out smaller or short-term reserves. The right call turns on whether the money is a planned reserve or a working float.
View Redwood Bank savings →Everything below explains the trade-offs in full.
Redwood Bank Business Savings Account at a Glance
| Feature | Detail |
|---|---|
| Top rate | 4.25% AER (2-year fixed bond) |
| Account types | 35 and 95-day notice accounts; 1 and 2-year fixed bonds |
| Access | Notice (35 or 95 days) or fixed term; no easy access |
| Minimum deposit | GBP 10,000 per account |
| Maximum balance | GBP 1,000,000 per account |
| Account fees | None (no monthly or transaction fees) |
| Interest paid | Monthly or annually (your choice) |
| FSCS protection | Up to GBP 120,000 on Redwood’s own licence |
| Provider / licence | Redwood Bank Limited (FCA FRN 755924) |
| Eligibility | Limited companies, partnerships, sole traders, charities; SPV and property-friendly |
| Rates checked | June 2026, redwoodbank.co.uk |
| Notice-account rates are variable; fixed-bond rates are locked for the term. Verified against redwoodbank.co.uk, June 2026. Confirm current rates before applying. | |
Pros and Cons
Is Redwood worth it?
- Competitive notice and fixed rates from a fully licensed bank, up to 4.25% AER on the two-year bond.
- Deposits held on Redwood’s own banking licence, so FSCS cover is separate from the ClearBank pool.
- Open to sole traders, partnerships, limited companies and charities, with a genuine welcome for property and SPV businesses.
- No monthly fees and no transaction charges to chip away at the return.
- No easy-access account at all; every product ties your cash up by notice period or fixed term.
- GBP 10,000 minimum deposit, higher than easy-access rivals such as Recognise Bank (GBP 1,000).
- Thin public review record: a young specialist bank with only around 40 Trustpilot reviews.
- No card, no invoicing and no foreign currency; these are sterling deposit accounts only.
Redwood Bank Business Savings Accounts and Rates
You get two notice accounts and two fixed-rate bonds. The rate climbs with the commitment: the longer the notice or the term, the more you earn. The catch is access. There’s no easy-access tier at any rate.
| Account | Rate (AER) | Access | Deposit range |
|---|---|---|---|
| 35-Day Notice Account | 3.55% variable | 35 days’ notice to withdraw | GBP 10,000–1,000,000 |
| 95-Day Notice Account | 3.85% variable | 95 days’ notice to withdraw | GBP 10,000–1,000,000 |
| 1-Year Fixed Rate Business Bond | 3.90% fixed | Locked for 12 months | GBP 10,000–1,000,000 |
| 2-Year Fixed Rate Business Bond | 4.25% fixed | Locked for 24 months | GBP 10,000–1,000,000 |
| Verified against redwoodbank.co.uk, June 2026. Notice rates are variable; bond rates are locked for the term. Confirm before applying. | |||
35 and 95-Day Notice Accounts
The notice accounts pay 3.55% AER at 35 days and 3.85% AER at 95 days, both variable. You can add money whenever you like. To withdraw, you file a request and wait out the notice before the funds release.
They suit a reserve you can see coming. If you know your VAT bill lands at quarter-end, 95 days’ notice is easy to plan around; you file the request in good time and the cash arrives before the deadline. The notice period is the price of the higher rate.
1 and 2-Year Fixed Rate Business Bonds
The bonds pay 3.90% AER over one year and 4.25% AER over two, locked for the term. Not the same as easy access. Only commit money you’re confident you won’t need.
In return you get Redwood’s highest rates and a fixed, predictable return. That certainty helps when you’re planning cash flow a year or two out, say a retained-profit pot earmarked for a future hire or purchase.
How Redwood Bank Business Savings Works
How you are paid. You choose whether interest is paid monthly or annually, which is handy if you want the income drawn off rather than compounded back into the balance.
How you pay in. Money moves in from your nominated UK business bank account, held in the same business name. You can top up a notice account whenever you like; a fixed bond is funded within a set window after opening.
When you withdraw. Everything routes back through that same nominated account. On a notice account you submit a withdrawal request and the funds release after 35 or 95 days; on a fixed bond there’s no access until maturity.
You have to plan around that. If your payroll run is due and you need the cash flow back, you have to have filed the notice weeks earlier. The account won’t release funds early.
What you give up. Notice periods and fixed terms are the whole design; there’s no instant access on any product, so the wait, or the lock, is the price of the rate.
What can change your rate. Notice-account rates are variable, so Redwood can move them with the base rate or its own pricing. Fixed-bond rates are set for the term once your money is in.
Fees, Charges and Limits
You pay no monthly fee and no transaction fees on any savings product, so there’s little to weigh on cost. The only real constraint is access, not money. What matters most is the deposit range and the notice or term you sign up to.
| Charge or limit | Detail |
|---|---|
| Monthly account fee | None |
| Transaction / withdrawal fees | None |
| Minimum deposit | GBP 10,000 per account |
| Maximum balance | GBP 1,000,000 per account |
| Early access on bonds | Not available until maturity |
| Notice to withdraw | 35 or 95 days, by account |
| Verified against redwoodbank.co.uk, June 2026. | |
Eligibility and Application
You can open an account as a limited company, a partnership, a sole trader or a charity. That’s broader than several rivals, which quietly shut sole traders out.
If you run an SPV holding deposits between completions, property is where Redwood pulls ahead: it understands the structure where a high-street bank might freeze the application for review.
We rate that welcome as the reason many property businesses choose Redwood. Check current eligibility for your structure before you apply.
You apply online or by post, and you’ll need your business details plus ID and address verification for the directors, partners and significant shareholders. These are the standard checks any deposit-taking bank runs.
You need one thing in place first: a nominated UK business bank account in the same business name. It funds the account and receives every withdrawal, including the cash you set aside for VAT, so set it up before you apply.
Account Access and Management
Because these are deposit accounts, you manage them simply: there’s no spending card and no current-account toolkit, so you run the reserve and leave the operating banking to your main account.
- Manage the account online, with up to four authorised users able to view and operate it.
- Choose interest paid monthly or annually, useful if you want the income drawn off rather than compounded.
- Move money in and out only through your nominated UK business bank account, in both directions.
- No debit or spending card; these are savings products, so money moves by transfer, not by card.
- No invoicing, expense management or accounting integrations; pair Redwood with your operating account for those.
- No foreign currency or overseas payments; the accounts are sterling-only deposits.
FSCS Protection, Regulation and Security
Your deposit sits with a fully licensed UK bank (Redwood Bank Limited, FCA FRN 755924), authorised by the PRA and regulated by the FCA. That matters: eligible savings are protected by the FSCS up to GBP 120,000 per eligible depositor, the statutory limit since 1 December 2025.
The nuance we want you to catch is whose licence holds your money. Redwood takes deposits on its own banking licence. Its FSCS cover is independent of the ClearBank pool that backs Tide and Capital on Tap savings. That matters at scale.
So if you’re spreading a large reserve across providers to stay inside the limit, Redwood gives you a genuinely separate GBP 120,000, not a share of someone else’s. That’s the point people miss.
When your VAT reserve has to sit safely and earn for months, we weigh that full banking licence and its FSCS cover above any single feature.
Customer Reviews and Reputation
You should read the score with real caution, because the sample is tiny. When we checked in June 2026, Redwood held around 4.5 out of 5 on Trustpilot, but from only about 41 reviews, far too few to draw firm conclusions from.
Reviewers praise a straightforward application and the rates, and you will also see the scattered onboarding complaints any young bank collects. There’s simply not enough volume to call either a trend.
You should read it as a young specialist bank: a thin public record, but a full banking licence. When your VAT reserve has to sit safely and earn for months, that licence and the FSCS cover behind it count for more than a 41-review score.
Redwood Bank Business Savings vs Alternatives
Redwood vs Recognise Bank
If you want access or a low entry point, Recognise Bank is the natural alternative: easy-access saving from just GBP 1,000, against Redwood’s GBP 10,000 minimum and notice-only range.
We split it by your cash. If you might need the money before payday, or you are starting a smaller reserve, Recognise fits better. If you can commit and want the higher fixed rates, Redwood pays more. That’s the trade to weigh.
Redwood vs Cynergy Bank
Cynergy Bank also offers business savings with easy-access and notice options, so compare them on the current rate and on whether you value access over Redwood’s fixed-term certainty.
For your reserve, Redwood’s edge is its property and SPV focus and its own-licence FSCS separation. Cynergy’s is a broader, more established savings range. Pick the one whose strength matches your cash.
Redwood vs Capital on Tap
Capital on Tap gives you easy access and a competitive rate. But it’s backed by ClearBank, so its FSCS cover shares the same GBP 120,000 pool as Tide and any other ClearBank-backed balance you hold.
If you’re parking a large reserve and already hold a ClearBank-backed saver, Redwood’s own licence keeps its protection separate, and that can be the deciding factor. It’s the quiet difference that matters at scale.
We compare every option side by side in our best business savings accounts guide.
Is Redwood Bank Business Savings Worth It?
It comes down to whether you can commit the cash. If you can, Redwood is one of the better-paying homes for a planned business reserve: real bank rates up to 4.25% AER, no fees, and FSCS protection on its own licence rather than a shared pool.
Picture your SPV holding GBP 200,000 between completions, or your company setting aside VAT for the year. Locked into the two-year bond, or held at 95 days’ notice, that money earns 4.25% or 3.85% AER, where a current account would pay it nothing.
But if the balance is a working float you might need to cover next week’s supplier run, Redwood is the wrong account. The notice wait is the point, and there’s no easy-access option to fall back on.
For that money, you want an easy-access account like Recognise instead. Match the product to your cash-flow plan, not the headline rate, and Redwood rewards only the reserve you can genuinely lock away.
Frequently Asked Questions
What interest rates does Redwood Bank business savings pay?
As of June 2026 (verified from redwoodbank.co.uk): the 35-day notice account pays 3.55% AER and the 95-day notice account pays 3.85% AER, both variable. The fixed bonds pay 3.90% AER over one year and 4.25% AER over two years, with the rate locked for the term. Every product takes deposits from GBP 10,000 up to GBP 1,000,000. Rates may have changed; confirm before opening.
Does Redwood Bank offer an easy-access savings account?
No. Redwood deliberately offers only notice accounts (35-day and 95-day) and fixed bonds (1-year and 2-year). There’s no instant-access option, so it’s the wrong home for cash you might need at short notice. If you want easy access, Recognise Bank and Cynergy Bank both offer it.
Is Redwood Bank business savings FSCS protected, and on whose licence?
Yes. Eligible deposits are protected by the FSCS up to GBP 120,000 per eligible depositor. Redwood holds deposits on its own banking licence (Redwood Bank Limited, FCA FRN 755924), so its protection is independent of the ClearBank pool that backs Tide and Capital on Tap. That gives you a separate GBP 120,000 if you’re spreading a large reserve across providers.
What is the minimum deposit for Redwood Bank savings?
GBP 10,000 per account, with a maximum of GBP 1,000,000. The minimum is higher than easy-access rivals such as Recognise Bank, which starts at GBP 1,000, so Redwood suits a sizeable planned reserve, like the cash you set aside for VAT across the year, rather than a small or starter balance.
Who can open a Redwood Bank business savings account?
Limited companies, partnerships, sole traders and charities can all apply. Redwood is notably comfortable with property and SPV businesses that some savings banks treat warily. You apply online or by post and need a nominated UK business bank account in the same business name to fund the account and receive withdrawals.
How We Reviewed Redwood Bank Business Savings
What we assessed. We evaluated Redwood Bank business savings on the rate each product pays, access terms, minimum and maximum deposit, fees, eligibility and deposit protection, the factors that decide whether a planned reserve works harder here than elsewhere.
Data sources. Rates and terms were checked product-by-product on redwoodbank.co.uk in June 2026, with the banking licence cross-referenced on the FCA register (Redwood Bank Limited, FRN 755924) and the FSCS limit confirmed at fscs.org.uk. No comparison sites or aggregator data.
Update cadence. We re-verify this page whenever Redwood changes its rates, terms or eligibility, and the verification date reflects the most recent full review. BusinessExpert doesn’t earn commission from Redwood Bank; see our editorial policy.