50 Best Business Savings Account In The UK (2024 List)

Entrepreneurs and small business owners often find it difficult to save money from the meager profits they make during the initial phase of their businesses. But, for a business to grow and flourish, you need to have a certain amount of money as savings.

A business savings account can help you set aside a small percentage of your returns to aid you during emergencies or for future expansions.

By you being here, it is evident that you are on the internet searching for the best business savings account that gives you the best returns. Fortunately, you have arrived at the right spot.

For starters, a business savings account is essentially a bank account for your business. It helps you save money that you don’t need access to daily. But, if you ever have an emergency, you can withdraw it instantly.

You don’t have to deposit a large sum of money while starting a business savings account. Depositing small sums of money at regular intervals can help you build a good investment in the long run.

There are many different types of business savings accounts to choose from. It might get quite overwhelming to choose from any one of them.

We have compiled a list of the 50 best business savings accounts in the UK. Read along to find out which business savings account is the best for you.

What Is A Business Savings Account?

A business savings account is a bank account set up to save money for your business’s prospects. It is a financial tool that helps you to save money that you don’t intend to use daily.

Instead of putting your money in a safe, a business savings account helps you earn interest for your deposits, which in turn increases your overall savings.

It is necessary to have a business savings account even if you are a small business owner or a huge corporation.

A business savings account is very different from a current account. In a current account, you can use the funds for daily transactions. Meanwhile, in a business savings account, you deposit the funds for long-term investments.

Financial experts tend to call the business savings account a “financial cushion” for your company. If you ever have emergency expenditures, financial difficulty due to force majeure, or simply, a rainy day, the business savings account will aid you in bringing your business back up and running.

Another added benefit of having a business savings account is that it offers good returns for your deposits in the long term. The interest rates will vary according to financial institutions.

Investing in an account that has the highest interest rate will fetch you more money at the end of the day. Nowadays, most banks offer competitive interest rates and it has become very difficult to choose a business savings account.

So, it ultimately boils down to other features that the business savings account offers such as security, fraud protection, taxes, bonuses, and flexibility of deposits.

New business owners are afraid of dipping their toes in the business savings account as many believe that they can only access the funds deposited in the business savings account after a certain period.

While it is true that business savings accounts are designed for long-term investments, they are considered “liquid assets”. This means that you can access the funds in your business savings account as much as you like and as many times as you like.

You can easily move your funds in and out of the business savings account and even transfer funds to your friend’s or relative’s bank account. There are no restrictions and it is just like your ordinary bank account.

50 Business Savings Accounts In The UK

1. Tide Instant Saver Accounts

Offers one of the highest interest rates at 4.33% AER.
Interests are paid out into your account on the 1st of every month.
Available to freelancers, small business owners, and huge corporations registered in the UK.
Effortless registration process using Tide’s dedicated app.
There are no minimum and maximum deposit limits.
No deposits, withdrawals, and low balance fees.
Make as many deposits and withdrawals on your account.
No lock-in period for your investments.
Deposits of up to £85,000 are protected through the UK’s Financial Services Compensation Scheme (FSCS).

2. Cynergy Bank Business Saver

Digital business savings account with a fast registration process and faster transactions. However, there is no app to manage your savings.
Made especially for freelancers, small businesses, partnership firms, and limited companies with up to 10 partners.
Offers an interest rate of up to 4% AER (variable).
The interest on deposits is paid monthly at 3.93% gross per annum.
The minimum deposit to open an account is £1.
Deposit within 14 days after opening a business savings account.
The maximum deposit limit is £10 million.
Cynergy also offers business current accounts.
UK’s deposit guarantee scheme, FSCS (Financial Services Compensation Scheme (FSCS) protects up to £85,000 in deposits.

3. Allica Bank Business Savings Accounts

UK-based registered companies can opt for business saving accounts on Allica Bank.
The interest rates start at 4.01% (variable) and go up to 5.15% AER.
Make a minimum deposit of £20,000 after opening the account.
The maximum deposit limit is £2 million.
Offers two fixed-rate bonds with 6 to 12-month terms.
Allica Bank also offers free business current accounts which earn up to 4.33% AER variable.
The dedicated app from the bank ensures fast payments.
Deposit and withdraw funds 24/7 using the bank’s app.
Eligible deposits of up to £85,000 are protected using the UK’s FSCS Scheme.

4. Shawbrook Bank Business Savings Accounts

The interest is earned at a rate from 3.76% up to 5.03% AER.
The minimum deposit to start a business savings account is £1,000.
The account can hold up to £2 million in deposits.
45-day, 100-day, one-year, and two-year fixed-term savings are available.
The minimum withdrawal limit for the easy access account is £500.
Open an account easily online or by phone. Phone services are available from Monday to Friday and from 9 am to 5:30 pm.
24/7 services are available to manage your business savings account.
FSCS protects deposits of up to £85,000.

5. Virgin Money Business Savings Accounts

Instant access, notice accounts, and fixed-term deposits.
Earn interest from 1.35% up to 5.15% AER.
Make deposits from a minimum of £1, up to a maximum of £2 million.
Get paid monthly, quarterly, or at the end of the term.
No minimum or maximum balance restrictions for instant accounts.
Fixed-term accounts require a minimum of £5,000 in deposits and can hold up to £25 million.
Get offers like cashback depending on your type of account.
You can avail a standalone savings account or link it with your current account.
Eligible deposits of up to £85,000 are protected by FSCS.

6. Aldermore Business Savings Accounts

Provides easy access and fixed-term accounts.
Interest rates start from 3.66% up to 4.51% AER.
The interest on deposits is paid out monthly or annually.
The minimum balance to be maintained in all accounts amounts to £1,000.
A maximum of up to £1 million can be maintained in the account.
24/7 online banking services are available.
Dedicated customer support for UK customers.
FSCS offers protection of up to £85,000 for eligible deposits.
Have won numerous awards in 2023 for banking services like Best Business Easy Access AccountProvider 2023, Best Fixed Rate Business Savings, etc.

7. Recognise Bank Business Savings Accounts

Offers easy access, notice, and fixed rate accounts for small and big businesses.
Freelancers, sole traders, partnerships, and limited companies are eligible for starting business savings accounts.
Interest rates range from 3.15% to 4.50% AER.
Calculated daily, monthly, or annually and paid directly into your account or the business account.
Make deposits from £1,000 up to £250,000.
If you are a sole trader, the maximum limit is £85,000 across all Recognise accounts.
24/7 online banking service to manage your account and deposits.
UK’s Financial Service Compensation Scheme offers protection for eligible deposits of up to £85,000.

8. Revolut Business Savings Accounts

Business savings account with interest paid out daily and with annual subscription savings.
Interest rates start from 2.25% AER with deposits of up to £500,000, for £19 per month.
Get a 2.75% variable of up to £1 million, for £79 a month.
Get the maximum interest rate of 3.51% on up to £2 million, with custom pricing.
Apply for an account online and get sanctioned within a few minutes.
Your company should have a strength of 250 employees and a £36 million turnover and you can deposit a maximum of £18 million.
Manage your funds efficiently with the bank’s dedicated app.
Make deposits and withdrawals anytime you like.
The eligible deposits are protected under FSCS up to £85,000.

9. Wise Business Interest

A digital financial company that offers easy access accounts that provide multi-currency interest on your deposits.
Get 3.67% on EUR, 4.66% AER on GBP, and 5.05% on USD for your business account.
The deposit scheme is exigible for annual fees that range from 0.27% to 0.56%.
Access your funds 24/7 using the bank’s dedicated app.
Exclusive customer support for customers from the UK.
You need to create a Wise Business account to use Wise Interest. The registration fee is £45.
Many netizens have positively reviewed the Wise business savings account.
FSCS protects the deposits through Wise Assets and BlackRock.

10. Carter Allen Private Bank Business Savings Accounts

It is a subsidiary of Santander Bank.
Offers a notice account and fixed-term savings accounts.
Earn interest from 3.65% up to 4.70% AER.
The notice period for the notice savings accounts is 35 days.
For fixed-term savings accounts, the terms are 12 or 24 months.
The minimum deposit to open an account is £5,000.
Business current accounts earn an interest of 0.05% AER.
A withdrawal of up to £2,500 can be made within the notice period without any penalty if the balance is above £5,000.
The bank is included in the FSCS.

11. Dudley Business Society Business Savings

Dudley building society Business Savings Account

Provides instant access and notice accounts.
Choice of one or two-year fixed term.
Incorporated and unincorporated businesses are eligible for business savings accounts.
Fixed-term interest rates range from 4% to 4.20% AER.
The minimum deposit while creating the account is £1,000.
The account can hold up to £1 million.
Instant access accounts offer a variable rate of 3.75% AER.
Notice accounts offer an interest rate between 3.95% and 4.10%, up to £1 million.
Applications for opening an account can be made in person, by post, or by phone.
Access the account through online banking from the brick-and-mortar branches.
Covered by the FSCS up to £85,000 for eligible deposits.

12. New Castle Building Society Online Business Savings

Newcastle building society Business Savings Account

Offers a choice of easy access saver and 60/90 day notice accounts.
Suitable for freelancers, sole traders, partnerships, and limited companies.
Earn interest between 3.60% and 4.10% AER.
The minimum deposit required is £1.
The account can hold deposits of up to £1 million.
Apply for an account from their website or directly from their branch.
The bank’s app gives you 24/7 access to manage, deposit, or withdraw funds.
Provides financial planning advice.
The business account is protected with the UK’s FSCS.

13. Saffron Building Society Business Savings Accounts

Choose from a wide variety of business saving accounts like fixed rate or instant access accounts.
Earn an interest between 1.20% variable and 4.40% AER.
The interest is calculated daily and paid monthly or annually.
The minimum deposit limit is set at £1 and the maximum balance the account can hold is £2 million.
Any type of business venture can opt for a savings account. Even the not-for-profit businesses.
The account can be managed online, from the branch, or through post.
The customer support team is available from Monday to Saturday and is quite supportive.
The deposits are protected by the FSCS for a total of up to £85,000.

14. Kent Reliance Business Savings Accounts

Provides instant-access accounts with no limit for withdrawals.
Open an account from the bank’s website/app in a matter of minutes.
Private limited companies with less than 3 directors are only eligible to open an account.
The minimum deposit limit is £1,000.
Interest rates start at 3.00% AER variable.
Interest is calculated daily and is paid monthly or annually.
Contact customer support via phone, email, or post.
The customer support is friendly and is available only on weekdays.
Manage the account from the bank’s website.
Deposits of up to £85,000 are protected under FSCS.

15. Danske Bank Business Savings Accounts

Offers instant access, fixed terms, and current accounts.
Interest starts from 1.65% AER up to 1.90% AER.
An instant access account can be opened with a balance of £1.
For fixed-term savings accounts, the initial deposit required is £5,000.
Small, medium, and large businesses can opt for a business current account.
The account can be opened online and managed 24/7 online and by phone.
Customer support is friendly and is available 24/7.
Savings of up to £85,000 are protected under the UK’s FSCS

16. NatWest Business Savings Accounts

Choose from instant access, notice, and fixed-term savings accounts.
Small and large businesses are eligible to open an account.
Earn interest between 1.46% to 4.25% AER on your deposits.
The interest is paid on maturity or the last day of each month.
Notice savings accounts have no minimum and maximum balance limits.
The minimum deposit requirement for the fixed-rate savings account is £100k.
Dedicated app for 24/7 mobile banking.
Highly supportive customer support team.
Eligible deposits of up to £85,000 are covered by FSCS.

17. Royal Bank Of Scotland Business Savings Accounts

Choice of instant access, notice, and fixed-term accounts.
All types of businesses are eligible to open an account.
Earn an interest from 1.46% to 4.25% AER.
The fixed-term savings account has custom interest rates.
No minimum and maximum balance requirements.
Fixed-term accounts have a minimum requirement of £100k.
24/7 account management via mobile banking.
Friendly and agile customer support team.
The bank is listed by the Financial Conduct Authority (FCA) and is eligible for FSCS.

18. Monzo Business Savings Pot

Completely digital instant-access savings account.
Businesses need to have Monzo’s current account to open a savings account.
The interest rate offered is 1.60% AER (variable) and is paid monthly.
No minimum deposit requirement to open an account.
No limit for deposits and withdrawals.
The account can hold deposits of up to £100,000.
The account is accessible through the mobile app 24/7.
Monzo also offers various tools and features to manage the savings account.
Covered by FSCS up to £85,000.

19. Metro Bank Business Deposit Accounts

Choose between instant access, notice, and fixed-term accounts.
Open for small businesses, large businesses, and charities.
Earn interest between 1.20% to 3.70% AER.
The minimum deposit requirement is £1 while opening an account.
The savings account has no upper balance limits.
Get two business current accounts.
Manage the savings account 24/7 through mobile.
Open an account through the mobile app or directly from the branch.
Deposits are covered under the FSCS.

20. Bank of London Business Savings Accounts

The bank of london Business Savings Account

Offers a variety of accounts like instant access, notice, and fixed rate accounts.
Earn interests of up to 4.90%.
Notice saving accounts have a period from 31 to 180 days.
Choose between fixed terms of 1, 2, or 3 years.
The minimum balance requirement for opening an account is £10,000.
The bank also offers business current accounts.
Use the bank’s website to open an account within a matter of minutes.
Customer support is available 24/7.
Deposits of up to £85,000 are protected under FSCS.

21. Ulster Bank Business Savings Accounts

Offers Instant access accounts, fixed-term accounts, and foreign currency savings accounts.
Savings can earn interest from 1.36% AER to 1.81% AER.
The interest is calculated daily and paid out monthly.
Instant access accounts have no minimum balance or withdrawal limits.
Fixed-term accounts can have 1 week to 1 year period.
Withdrawals are permitted only at the end of the maturity in fixed-term accounts.
Foreign currency savings accounts also do not have any balance or withdrawal limits.
The bank is secured under FSCS.

22. Nationwide Business Savings Accounts

The bank offers instant access accounts, notice, and fixed-term accounts as well.
Interest rates start from 2.25% variable up to 4.25% AER fixed.
The interest can be paid monthly or annually.
The minimum balance requirement while opening an account is £5,000.
The maximum balance limit is £10 million.
Businesses with turnover of more than £10 million can opt for customer balance limits.
Easily open an account and manage it through online, post, or fax.
Deposits of up to £85,000 are protected under FSCS.

23. Redwood Bank Savings Accounts

Choice of two notice accounts and one fixed business bond.
Provides up to two savings accounts.
Earn interest from 3.75% variable up to 4.65% AER fixed interest.
Interest is paid monthly or annually.
The minimum deposit requirement is £10,000.
The maximum balance the account can hold is up to £1 million.
There are no deposit limits.
For notice accounts, withdrawal is permitted only after the notice period.
For fixed-term accounts, withdrawals are permitted only after the end of maturity.
FSCS covers deposits of up to £85,000.

24. United Trust Bank Business Savings Accounts

Offers one of the highest rates of interest for business savings accounts.
Offers four notice accounts and eight fixed-term savings accounts.
Interest rates vary between 4.10% to 5.25% AER.
Opt for interest to be paid annually or at the end of the maturity period.
The minimum deposit limit is £5,000.
The maximum balance the account can hold is up to £1 million.
Withdrawals are permitted only after the end of the maturity period.
Manage the savings account through phone, mail, or by post.
Eligible deposits of up to £85,000 are protected by FSCS.

25. Barclays Business Savings Accounts

Choose from instant access, fixed-term, and notice savings accounts.
Interests start from 1.51% up to 1.96% AER, on the instant account.
Fixed terms are available from overnight to a year and have different interest rates.
All the rates are calculated daily and paid quarterly or at the end of the term.
Also offers a huge choice of business current accounts.
Manage the accounts online, by phone, by post, or from the branch.
A dedicated customer support team is available round the clock.
The bank is recognized by the FCA and is protected under FSCS.

26. Charity Bank Savings Accounts

Offers instant access, notice accounts, and fixed-term savings accounts.
Earn interests between 2.28% AER and 4.1% AER.
Charities and small businesses are welcome to start savings accounts.
The minimum balance to open an account is £1,000.
Make a maximum deposit of up to £500,000 on your savings account.
Deposit more than £10,000 in instant access accounts to get 0.10% AER as a bonus.
Open an account from the branch or by phone.
Manage your savings account by post, phone, or email.
Deposits are protected under FSCS.

27. OakNorth Business Savings Accounts

Choose from a wide variety of instant access, notice, and fixed-term accounts.
Earn from 1.00% up to 2.00% AER on your deposits.
Instant access accounts can be accessed from the next day after opening the account.
Notice accounts have 35, 60, 95, and 120 days as notice periods.
Fixed deposit accounts have six or twelve-month terms.
The minimum balance to open an account is £10,000.
The savings account can hold a maximum balance of up to £1,000,000.
Open your savings account and manage it 24/7 online.
The bank and its deposits of up to £85,000 are protected under FSCS.

28. TSB Business Savings Accounts

Offers an instant access account or business bond with three terms.
You need to own a TSB business current account to open a savings account.
The interest rate varies between 1.35% AER and 1.50%.
Fixed-term investments of 12,18, and 24 months term have an interest rate of up to 4.50%.
A minimum deposit requirement of £5,000.
The maximum TSB’s savings account can hold is £5 million.
Manage the savings account 24/7 online.
The deposits are protected under FSCS.

29. The Co-operative Bank Business Savings Accounts

Choose between instant savings accounts or notice accounts.
Also provides multiple business current accounts.
The interest varies between 1.63% of up to 2.51%.
The interest is calculated daily and paid out two times annually.
No minimum and maximum balance requirements for savings accounts.
Must have a Co-operative Bank business current account to be eligible to open a savings account.
Instant access accounts can be managed online or through phone.
Notice accounts can be managed only through the bank’s website.
Eligible deposits of up to £85,000 are protected through FSCS.

30. Santander Business Savings

Offers two instant access savings accounts and one fixed-term account.
Earn interest from 1.05% up to 3.60% AER.
Has a withdrawal penalty of 0.4% interest rate reduction.
The interest is calculated daily and paid monthly or annually.
The minimum deposit limit is £1.
The maximum savings the account can hold is up to £5 million.
Only customers with current savings accounts can opt for fixed-term savings accounts.
Manage the savings account through your smartphone, using the bank’s mobile app.
FSCS covers deposits of up to £85,000.

31. Lloyds Bank Business Savings Accounts

Choose between instant access, notice, and fixed-term accounts.
Interest between 1.31% and 4.37% is earned for the deposits.
Interest is calculated daily and paid out monthly or at the end of the term.
Small and large businesses can opt for savings accounts.
The minimum deposit requirement while opening an account is £1.
Deposit up to £5 million in the instant access accounts.
The 95-day notice account is only for businesses that can have a turnover of £3 million or more.
No restrictions for withdrawals on notice and instant access accounts.
Covered by FSCS up to £85,000.

32. HSBC Business Savings Accounts

Choose from call deposit accounts, notice savings accounts, and fixed-term accounts.
Earn interest from 1.94% AER variable.
The interest is paid monthly or twice annually.
Kinetic current account holders are eligible to open a Kinetic instant access savings account.
Open a business savings account from the branch, online, by phone, or by post.
Provides the best banking experience through HSBC’s 24/7 mobile bank app.
The bank is recognized by FCA and is eligible for FSCS.

33. Raisin QIB Bank Savings Accounts

Choose from easy access, notice accounts, and fixed-rate bonds.
Earn interest from 3.80% AER up to 5.20% AER.
Instant access accounts require a minimum deposit of £1 with no maximum deposit limits.
Notice accounts have a 31, 32, 35, 60, 65, 90, or 95-day notice period.
Fixed deposit accounts provide 3, 6, 9, or 12-month terms.
The minimum and maximum deposits of the fixed-term account amount to £500 and £1,000 respectively.
All accounts can hold up to £2 million in savings.
Open and manage the account online and using the mobile app.
FSCS protects deposits of up to £85,000 per person.

34. RCI Bank Business Savings Accounts

Choose from easy access, fixed terms, or notice accounts.
Interests are earned from 4.00% up to 5.05% AER.
Instant access accounts have a £100 minimum deposit limit.
Offers unlimited deposits and withdrawals with no penalty fees for instant access accounts.
Select between 1-year, 2-year, or 3-year terms for the fixed-term savings account.
The minimum deposit limit is £1,000 for fixed-term savings accounts.
RCI bank also offers 14-day and 95-day notice accounts that have a limit of £100 up to £1m.
Dedicated customer support for UK account holders.
Eligible deposits of up to £85,000 are covered under FSCS.

35. Investec Business Savings Accounts

Choose from fixed deposit, instant access, and notice savings accounts.
Earn from 4.40% up to 5.13% AER on your savings.
The bank offers 1,2, and 3-year terms for fixed deposit accounts with no withdrawals in between.
A 90-day notice account offers an interest rate of up to 5.13% on balances between £5,000 to £250,000.
Online Flexi Saver account provides unlimited access and withdrawals.
The minimum balance to be maintained in the account is £5,000.
Apply for an account from your smartphone using the bank’s mobile app.
Manage the savings account online or by phone.
Provides 24/7 online access through the bank’s digital platform to manage the savings accounts.
The FSCS protects all business savings accounts.

36. H&R Business Savings Accounts

Choice of instant access and notice accounts.
The interest rates start at 2.45% AER and up to 4.60% AER.
The minimum investment for an instant access account is £25 and permits unlimited withdrawals.
The minimum investment for notice accounts is £1,000 and can be withdrawn after the notice period.
There are 30, 90, and 120-day notice periods for withdrawals in the notice savings accounts.
Small businesses, charities, and non-profit organizations can open savings accounts.
Open and manage the savings account 24/7 online.
Deposits of up to £85,000 per person are covered under FSCS.

37. Vanquis Business Savings Accounts

Offers a wide variety of business savings products.
Choose from fixed-rate products, notice accounts, and cash ISAs.
Interests start from 3.95% AER up to 5.20% AER.
Save up to £250,000 across all the savings accounts.
The minimum balance required for all savings accounts is £1,000.
Select from 90 days or 120 days notice account to get up to 5.20% in interest.
ISA accounts also have a 90-day notice period with a withdrawal penalty.
The terms for the fixed rate bond product darts from 1 year to 5 years.
Open and manage savings accounts 24/7 online.
The deposits made on Vanquis are protected under FSCS.

38. Charter Savings Bank

Choose from fixed-rate bonds, notice accounts, instant access accounts, and ISAs.
Earn interest from 4.96% AER up to 5.15% AER.
1 year fixed rate bonds calculate interest daily and are paid out monthly or annually.
The minimum and maximum limits for fixed-rate bonds are £5,000 and £1 million respectively.
The 95-day notice accounts offer an interest rate of 5.15% AER and are paid monthly or annually.
Easy access accounts permit unlimited payments and withdrawals and offer up to 4.93% AER in interest.
Fixed-rate Cash ISAs offer higher interest, but accessibility to the savings is sacrificed.
Manage the account online, by phone, or by post.
Eligible deposits of up to £85,000 are covered under the UK’s FSCS.

39. ICICI Bank (UK) Business Savings Accounts

Offers a variety of savings deposit plans.
Choose from a variety of Instant access and fixed-term accounts.
The interest rates start from 2.60% AER up to 4.75% AER.
The fixed-term account offers 1, 2, 3, or 5-year terms.
Fixed deposit accounts are available in GBP and USD.
Start saving from £1 onwards.
The accounts can hold a maximum balance of up to £5 million (instant access) and £1 million (fixed term).
Open a savings account from the branch and manage it online.
Beholders of the business’s current account are eligible for the bank’s savings account.
Eligible deposits of up to £85,000 are protected under FSCS.

40. Hampshire Trust Bank (HTB) Business Savings Accounts

Offers business notice accounts with a 95-day notice period.
Interests are earned at 4.50% AER and paid annually.
The minimum deposit requirement while opening an account is £5,000.
The account can hold a balance of up to £750,000.
No limits for deposits in the first 14 days after opening the account.
Withdrawals are permitted only after 95 days of notice.
Large businesses such as corporations can deposit up to £1 million.
Apply for an account and finish the registration process online.
24/7 account management online.
The bank and deposits are protected under the UK’s FSCS.

41. Smart Save Business Savings Accounts

Smart Save offers a wide range of fixed-rate saver accounts.
The interest ranges from 4.71% AER up to 5.17%AER.
The fixed-rate savers are available in 1-year, 2-year, 3-year, and 5-year terms.
Withdrawal of money is prohibited before the end of the fixed term.
The minimum amount to be deposited when starting a savings account is £10,000.
The account can hold a balance of up to £85,000.
Open a savings account online or by phone.
Manage the account using the bank’s mobile app.
All the savings accounts are covered under FSCS and are eligible for a compensation of £85,000.

42. Atom Bank Business Savings Accounts

Offers fixed-rate deposits and instant access accounts.
Earn interest from 4.30% AER up to 5.18% AER.
The fixed-rate saving account offers 6, 9, 12, 24, and 60-month terms for savings.
The minimum deposit for a fixed rate saver is £1,000.
Open an instant savings account with £0.
Instant access savings account supports unlimited withdrawals.
Open a savings account in a matter of minutes.
Manage the savings account from the bank’s mobile app.
Instant access savings account supports unlimited withdrawals.
Eligible deposits of up to £85,000 are protected under FSCS.

43. Close Brothers Savings Accounts

Choice of three fixed-term accounts from one to three years and a 95-day notice account.
The rate of interest varies from 4.50% variable to 5.15% AER for fixed.
Accounts are available for small and medium enterprises with less than 250 employees.
The minimum deposit limit is £100,00 for fixed-term accounts and the 95-day notice account has a minimum limit of £250,000 with a 1.00% rate AER.
Requires a nominated business account for deposits and interest payments.
Manage the savings account online or through the phone.
Customer support is friendly and is available 24/7.
Eligible deposits of up to £85,000 are covered under FSCS.

44. iFast Global Bank Corporate Fixed-Term Deposits

Provides a choice of three fixed-term savings with 3, 6, and 12-month terms.
Earn an interest rate of up to 4.60% AER.
The interest is calculated daily and paid to your nominated business account after maturity.
Small and medium enterprises (SMEs) and limited companies registered in the UK are eligible for opening savings accounts.
Open and manage the savings account online or by post.
The minimum deposit requirement is £10,000, while there is no maximum limit.
No withdrawals or deposits are allowed during the specified term.
Deposits of up to £85,000 are covered by the UK’s FSCS.

45. Cambridge & Counties Bank Business Savings Accounts

Cambridge & Counties Business Savings Account

Choose between a selection of fixed-rate bonds and notice accounts.
Small, medium, and large businesses, trusts and charities, and credit unions are eligible to open an account.
The interest rates start at 4.05% up to 4.80%.
Savings start from £10,000.
The maximum savings an account can hold is up to £5 million.
Fixed-rate bond accounts are available at 6-month, 1-year, 2-year, and 5-year terms.
Notice accounts have a notice period of 31 or 95 days.
You cannot withdraw the savings before reaching the maturity period.
Open an account online and manage it via phone or post.
Covered by FSCS up to £85,000.

46. Cumberland Building Society Business Savings Accounts

Choice of two instant access accounts, a notice account, or a fixed account.
The notice accounts have a notice period of 40 days and the fixed account is for a term of one year.
Earn interest from 3.05% up to 4.20%.
The interest is calculated daily and paid at the end of March, every year.
The minimum deposit to open an instant access account is £1.
The minimum balance to open a notice account is £100.
All accounts can hold a maximum balance of up to £1 million.
Access and manage the account using the bank’s website, mobile app, or the bank branch.
The building society is protected under FSCS.

47. Allied Irish Bank (GB) Business Deposit Accounts

Offers an instant access account and fixed-term accounts with different terms.
The interest rates of the instant access accounts start at 2.25% AED, calculated and paid daily.
Fixed-term accounts for a time of 3 months to 24 months offer an interest rate of 2.75%, up to 4.00% AER. The interest is paid yearly or on maturity.
The minimum deposit to open an account is £5,000.
While there is no maximum balance limit, corporate deposit accounts have a limit of £500,00.
To open an account, you need to visit the bank branch, or can also be opened through the phone.
Manage the account online, by phone, or at the bank branch.
Also offers current accounts and borrowing plans.
The bank is recognized by FCA and is covered under FSCS.

48. Union Bank of India (UK) Business Deposits

Union Bank of India Business Savings Account

Offers fixed-term business savings accounts.
Earn interest at 4.00% up to 4.95% on GBP and up to 4.80% on USD.
The terms start at one year and go up to 5 years.
The minimum balance to open an account is £1,000 or $5,000.
No withdrawals or additional deposits until the end of the maturity period.
The maximum balance the account can store is £1 million or 1 million.
Open an account by heading over to the branch or via post.
Manage the account via post, fax, email, or from the branch.
The bank is included in FCA’s list and is protected by FSCS.

49. State Bank of India (UK) Business Savings Accounts

One of the largest banks in India.
Offers instant access and fixed-term savings accounts for UK citizens.
The instant access account is available only for micro-businesses with an annual turnover of less than £1.7 million.
Get interests from 0.10% up to 5.00% fixed AER.
Offers a bonus of 0.50% for fixed accounts when renewed.
All the interests are calculated and paid on the month’s end or the last day of the year.
The minimum balance to be maintained in the account to earn interest is £10,000.
However, there are no limits for notice accounts.
Permits unlimited withdrawals for instant accounts, while prior notice is needed for notice accounts.
Open and manage the account via online banking, post, or by phone.
The bank is UK-regulated and is covered under FSCS.

50. Reliance Bank Business Savings Accounts

Choose between instant access accounts, notice accounts, and fixed-term savings accounts.
Earn interests from 2.15% up to 4.40% AER variable.
The interests are calculated daily and compounded yearly.
The minimum balance to open an account is £5,000 for notice accounts and £1,000 for fixed-term accounts.
However, there is no minimum balance requirement for instant access accounts.
The maximum savings any account can hold is up to £10 million.
All accounts can be closed within 14 days of opening it.
Open and manage your savings account online, mobile app, or by phone.
Eligible deposits of up to £85,000 are protected under FSCS.

Which Is The Best Business Savings Account?

Best Business Savings Account Overall: Allica business Savings Account, Rates from 4.01% AER up to 5.15% AER.
Best Easy Access: Tide Instant Saver Accounts. Interest rates of up to 4.33% AER.
Best Notice Account: Raisin QIB Bank Saving Accounts with interests of up to 5.20% AER.
Best Fixed Terms: Allica Business Savings Accounts with interest rates of up to 5.15% AER.
Best Digital Bank: Kent Reliance Business Savings Account. The interest rate starts at 3.00% AER.
Best High Interest: United Trust Bank Business Saving Account has the highest rate of interest at 5.25% AER.
Best Long Term: Cambridge and Counties Bank Business Savings Accounts with rates of up to 4.80% AER.
Best Short Term: iFAST Global Bank Corporate Fixed Term Deposits with interest rates of up to 4.60% AER.
Best For Large Business: Nationwide Business Savings Account with rates over 4.25% AER.
Best For Multiple Currency: Wise Business Savings Accounts offer 3.67% on EUR, 4.66% on GBP, and 5.05% on USD.

Factors To Consider When Choosing Business Savings Accounts

Now that you’ve seen the best selection of business savings accounts currently available to small and big businesses, choosing the right account from this rather long list is a tedious process.

We have narrowed the process down to four simple steps. Consider these four factors while choosing the right business savings account for you:

Interests

The interest rates for business savings accounts vary with the bank. Compare the interest rates and choose the bank that offers the highest APY (annual percentage yield).

This ensures the maximum returns to the amount you have invested in your business savings account. Most of the banks offer an interest rate in the range of 0.10% to 5.25% AER.

The interest rates may also vary according to your terms and deposit amount. The best rate in the sector is 4.33%.

Bonuses

Most of the banks provide lucrative promotions to attract new investors. You might earn a cash bonus while opening a new savings account in the bank.

Look out for bonuses and promotions that will fetch you more money in addition to the money you deposit and the interest accumulated.

Making a large initial deposit, choosing longer terms, and the type of savings account can get you bonuses for your business savings account.

There can be short-term and long-term bonuses and choose from the bank that offers the best bonuses to maximize your savings. But bear in mind that long-term bonuses are not as remunerative as short-term bonuses.

Accessibility and Convenience

With the boom of the internet and smartphones, everything has been converted to digital. Digital banking has nullified the need to go to brick-and-mortar banks for transactions.

Nowadays, there are many takers for digital banks that do not need a land-based office for operations.

Mobile apps and internet banking are the future of banking operations. Select the bank that offers the best digital banking experience.

You can easily create a business savings account, deposit cash, manage your account, and withdraw the money using the bank’s dedicated app.

Fees and Charges

Every bank charges a fixed maintenance fee for maintaining your business savings account. This exigible fee takes away a part of the interest earned from the deposits made in the account.

Many banks may charge an exorbitant amount of fees for maintaining an account. Choose a bank with reasonable fees while starting your business savings account.

Be sure to check the fee schedule of the bank and be aware of any additional charges that might be levied by the bank.

Types Of Business Savings Accounts

While starting a savings account, you need to be aware of the type of account you intend to start. Each type of account offers different features for different purposes.

Usually, there are three types of business savings accounts. They are:

Easy Access Accounts

This type of account gives you unlimited freedom to access and manage your savings account. In an easy-access savings account, you can withdraw cash at any time without informing the bank priorly.

But, the gripe is that each time you withdraw the cash, it will affect the interest rates. Withdrawing cash regularly from an easy-access savings account will lower your interest rate, thereby affecting your earnings.

Easy-access savings accounts usually have a low or no minimum deposit requirement. If you have a small business or need access to your funds regularly, consider an easy-access business savings account.

Notice Accounts

Notice accounts, as the name implies, you need to notify the bank before making a withdrawal. You will also have to tell the bank how much you would like to withdraw, beforehand.

Usually, the notice period for this type of savings account will be 30, 60, 90, or 120 days. Unlike the easy-access savings accounts, the interest rates won’t be affected for withdrawals in this account.

But, you will have to sacrifice instant accessibility for it. If you own a large or medium-sized business and do not need access to your funds regularly, notice accounts will be your better choice.

Fixed Rate Accounts

If you need to earn the best rate of interest for your deposits, then, a fixed-rate account is the way to go.

They offer the best interests for your deposits over a fixed period. This type of savings account usually requires a minimum deposit to open and manage the account.

However, the account does not allow you to make further deposits or make a withdrawal until the term is reached.

Bigger businesses and corporate companies can use the account to earn better interest for their deposits for a fixed period when they will need the amount.

Tax On Business Savings Account

There is no exemption to taxes for a business savings account. The tax on a savings account is based on its interest earned.

The interest earned is the gross of the savings account and is liable to be taxed by the government. The interest rate shown by the bank is the earning without the tax dedication.

You need to be aware that the bank does not deduct the tax from your account. You need to file your income tax returns based on the earnings acquired from the savings account. The tax levied is different for sole traders and limited companies.

If you are a sole trader, you only need to pay tax on the amount you make above the standard tax-free personal allowance, which is £12,750.

If your earnings from the business savings accounts are below £12,750, you don’t have to pay any tax.

If you have a limited company, you are liable to pay a corporation tax on any profits you make. This also includes your earnings from the business savings account.

The tax should be calculated and paid when the company’s tax return is filed.

Who Can Get A Business Savings Account

You need to fulfill certain criteria to open a business savings account. These include:

You must be a sole trader, or have a business in partnership, or a limited company registered with the Companies House.
You should be a UK resident with the right to work.
You should be over the legal age of 18.
Your business should be based in the UK and registered there.
There is no minimum income requirement to opening a business savings account, but, the minimum deposit for a business savings account varies according to the banks.

If you fulfill all the criteria mentioned above, you can open a business savings account for your business needs.

Difference Between Business Savings Accounts And Business Current Accounts

A business savings account allows you to deposit your money which you do not need regular access to and earn interest from it. It offers a steady income and protects your money from thieves and other unwanted expenses.

A savings account helps you to invest your money for future expansion of your businesses or to meet any emergency expenditure. You can deposit your money for fixed terms to earn more interest on your savings.

A business current account is very different from a business savings account. Unlike a savings account, a current account gives you access to your money at all times.

It is mainly used to manage your business expenses daily. A current account provides features like deposits, fund transfers, cheque issuance, withdrawals, etc.

If a person wishes to start a business, he/she should start a current business account along with a savings account.

Unlike a business savings account, you won’t earn any interest on the deposits you make in a business current account.

Some banks might provide you with interest on current accounts, but it will be very low when compared to a business account.

However, a business current account provides you with features like unlimited transactions, instant access to your bank account, and no minimum deposit and withdrawal limits.

Some current accounts also provide overdraft facilities, where you can withdraw more money than the balance in your account.

Thai helps you manage any emergency expenditures in your business. So, you should consider opening a business current account and a business savings account while starting a business.

How To Open A Business Savings Account

It is quite easy to open a business savings bank account. Most of the banks offer a straightforward way to open an account.

You can access the bank’s website or the mobile app to create a business savings account. As long as you fit the bank’s criteria that you intend to open an account, it only takes a few minutes to get your business savings account up and running.

Most online banks eliminate the paperwork and have completely digitized the account opening procedure.

Follow these steps to open a business savings account within a matter of minutes:

Select a bank from the list mentioned above and be sure to select a bank that offers a business savings account that suits your needs.
Head over to the bank’s website and check the eligibility criteria for opening a business savings account. Check if you fit their criteria before proceeding further.
Also make sure to check the rate of interest offered, the fee structures, and the terms offered. You should also read the bank’s terms and conditions before opening an account.
Send in your personal details and business details to the bank for opening a business savings account.
You need to prove your identity to finish the last leg of the account registration process. Submit the required documents as mentioned by the bank to verify your identity.
Download the bank’s app or access the bank’s portal to manage your business savings account.

If you like the old-school method, head over to the bank’s brick-and-mortar branch, speak with the bank manager, and fill in the papers to set up your business savings account.

Whichever way you opt to start an account, most of the bank gives you online access to manage your account. Some of the banks might have a minimum deposit requirement to open a savings account.

It usually takes a specific amount of time to verify the details provided and approve your bank account.

You can check the eligibility criteria for opening a savings account, from the bank’s official website.

You need to be a sole trader, or your business should be a partnership, or have an LLC agreement, or a corporation to start a business savings account in the UK.

Your company needs to be registered in the UK to start a business savings account, make deposits, and earn interest.

If you are not a resident of the UK, but your business is registered in the UK, you can start a business savings account if one of the directors of your business is residing in the UK.

If you have no directors residing in the UK, you can link your international business bank account with your business, but with the price of a steep minimum deposit.

The documents required to open a business savings account:

Proof of Identity:
1. Valid full UK passport.
2. Valid full UK Photocard Driving License.
3. Valid EU member state national AI photocard.
4. Valid firearms certificate or shotgun license.
Proof of Address:
1. UK-based bank or building society statement with debit or credit card.
2. Mortgage statement (issued within 12 months).
3. Utility bill (Gas/Electricity/Telephone) which was issued within 12 months.
4. Water Bill (issued within 12 months).
5. Council Tax Bill (issued within 12 months).
Business Verification:
1. A business bank statement (issued within 3 months).
2. An invoice from a supplier (issued within 3 months).
3. A utility bill that is issued to the business’s address.
4. A report of the income tax filing for your business.

Maximum Returns And Growth

Also, Read: 13 Best Business Bank Accounts For Startups

The best way to maximize your returns is by choosing the best business savings account that fits your needs.

Most of the banks mentioned in our list of the best 50 business savings accounts offer competitive interest rates.

The higher the interest rates, the larger your returns. But it is never about choosing the bank that gives you the best interest rate.

You need to consider a host of other features as well. Such as low fees and flexible terms will help you earn more from a business savings account.

Online savings accounts are now becoming quite popular among new and established business owners. Online banks offer much higher interest rates when compared to land-based banking establishments.

In addition to higher rates of interest, online banks also provide the additional feature of easy accessibility.

The bank accounts can be managed online and the funds can be deposited and transferred within a matter of minutes.

Online banks have lesser costs of operations when compared to traditional banks, which enables them to offer better interest rates, low fees, and minimum deposits for opening an account.

Another trick to maximize your returns is to maintain a high balance in your savings account. Many banks offer tiered interest rates, which means that if you maintain a higher balance in your account, the bank gives you a higher interest rate.

Also, never drain your business savings account dry. It will force the bank to lower the interest rate on your business savings account, lowering your chance of earning more.

You need to determine an ideal balance to be kept in your business songs account. Ideally, you should maintain a three to six-month income in your business savings account.

This ensures that your account will have sufficient balance even if there is an emergency expenditure.

You can manage your business savings account through your bank’s website or mobile app. Apart from making deposits and withdrawals, the app is an excellent tool to monitor your account regularly.

Regularly check your account balance and make deposits if it goes below a certain limit.

Generate your account statements regularly and calculate your expenses to lower those expenses and maintain a healthy limit in your business savings account. It also helps you to identify the areas of overspending and to reduce it.

If you opt for a business savings account that provides you with flexibility and access, it sacrifices your returns.

If you make withdrawals from time to time, it will adversely affect your earning rate. So, it is better to make fewer withdrawals from your business savings account to maximize your returns.

You should also be aware of the withdrawal penalties that most banks levy for untimely withdrawals.

Fixed-term business savings accounts provide the best interest rates but have penalties for making withdrawals before reaching a term.

Automating your savings can also help you to maximize your returns. Use various tools available on the market and provided by your bank to transfer funds from your current account to your business savings account if its balance goes below a certain limit.

It is also a good idea to seek more investment options other than solely depending on your savings account.

Bonds, stocks, mutual funds, SIPs (Systematic Investment Plans), etc are excellent investment options to increase your returns.

Follow the above-mentioned methods to maximize your returns from your business savings account. The idea is to maintain healthy savings, have a higher balance limit, reduce unwanted withdrawals, and regularly monitor your savings account.

Following these simple steps will fetch you higher interest rates for your account, which will in turn earn you more profit to invest back into your business for its growth.

Even if you are a sole trader or a CEO of a multinational company, these are the basic steps to follow to grow your business even further without any risks.

How Business Deposits Are Protected

Most people back out from opening a business savings account citing the reason that they might lose all their savings if the bank they invested in has failed.

However, most of the public does not know that the UK government protects the deposits of UK citizens through the Financial Services Compensation Scheme (FSCS).

The FSCS was established in 2001 under the Financial Services and Markets Act 2000 after several financial institutions collapsed.

According to the Prudential Regulation Authority (PRA), if a bank has failed, the FSCS will pay back the customer’s money within seven working days. This adds a layer of security to your deposits.

FSCS protects deposits of up to £85,000 per person. If the bank you have deposited your money in has failed, FSCS will automatically pay you £85,000 of your deposits.

If you are a sole trader, the maximum amount the bank is liable to pay you back is £85,000. This is because, for a sole trader, the personal and business finances are treated as one.

However, the rules and regulations of the FSCS vary according to your type of investment and the type of business that you run.

A small business, limited company, or charitable business is eligible to get claims under FSCS. The business has to be registered with the UK government and have its business account in a UK-based bank.

The business should also be a direct client of the failed bank. The Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA) are the bodies that approve the claim after investigating the relation between the failed bank and the business and the nature of deposits made.

According to PRS’s Depositor Protection Rules, if a UK-based bank, banking society, or credit union fails, the FSCS will pay you a compensation of up to £85,000.

If you are a sole trader, the maximum compensation will be £85,000. If the business is registered as a separate entity, with the likes of a limited company, each eligible depositor will be paid up to £85,000.

Large businesses are generally excluded from receiving compensation under FSCS.

What if you have deposits of more than £85,000? In special cases, FSCS offers compensation of more than £85,000. Another method is to split your deposits into various accounts with different beholders.

If you have two business savings accounts in the same bank, if the bank ever fails, you will receive a compensation of £85,000 only.

So, it is best to maintain a limit of £85,000 for your deposits or create multiple savings accounts in different banks to get 100% protection of your savings.

You can also create a joint account on the same bank to receive double the compensation if the bank fails.

However, it is to be noted that not all business savings accounts are eligible for compensation under FSCS.

The savings accounts held by banks that are not regulated by the Financial Conduct Authority (FCA), accounts held by investment firms, accounts held by insurance companies, and accounts held by overseas banks are not protected by the FSCS.

In addition to that, FSCS does not give compensation for losses caused by market fluctuations and losses created due to personal negligence.

It is also necessary to know who owns the banks that you deposit in. Two banks of the same financial institution would only fetch you £85,000 if the financial institution fails.

Follow these essential steps to get full coverage of your deposits:

Make sure that the banks you have savings accounts on are not owned by the same financial entity.
Create a joint account. In case the bank fails, you and your partner are liable to a compensation of £85,000 each.
Avoid off-shore savings accounts. Even though off-shore banks have attractive rates of interest, most of them do not offer any protection. Not only that, FSCS covers only UK-based banks.
Stay within the £85,000 limit if you have more than £85,000 in savings. Have multiple savings accounts in different banks to get full protection.

Best Business Savings Accounts: The Bottom-line

If you are a sole trader, have a partnership firm, or have a large business, a business savings account is the best option for investing your profit or excess cash for your business’s future or emergency expenditures.

Rather than accumulating the cash in your current account, you can invest it in a business savings account to earn interest. Different types of savings accounts offer different features and it is best to choose an account that is perfect for your needs.

Nowadays most banks offer competitive rates of interest for your deposits, it boils down to accessibility and features.

There are a myriad of banks that offer various types of savings accounts. This article has explained which bank to choose and which savings account might be the best for your business.

Most UK business owners are still hesitant about opening a business savings account. Many failed banks in the recent past might have brought the fear that they might lose their deposits.

Your deposit in the business savings account is protected under the Financial Services Compensation Scheme (FSCS).

It offers compensation of up to £85,000, in case the bank fails. So, you can invest your excess cash in business savings for the betterment of your business and earn more income from it.

So, if you are an entrepreneur or a freelancer, a business savings account is the best investment method to rely on if you ever have a rainy day.

Best Business Savings Accounts: FAQs

Are business savings accounts higher risk than business current accounts?
No, business savings accounts are considered low-risk accounts that earn you interest for your deposits. The business savings account is also protected by Financial Services Compensation Schemes (FSCS).

How many business savings accounts can one have?
You can open as many business savings accounts as you like. You will have to submit a self-assessment form each year for every business savings account.

Is it mandatory to have a business savings account to start a business?
No, it is not mandated by law to have a business savings account when starting a business. However, financial experts advise entrepreneurs to open a savings account to help them grow their businesses.

Do I need to pay taxes for my deposits on my business savings account?
No. You don’t have to pay taxes for your deposits in your savings account. However, you need to file taxes for the money earned from the deposits on the account.

Which banks are covered by the FSCS?
All the banks mentioned in this guide are covered by FSCS and people who open business savings accounts from these banks are eligible for compensation of up to £85,000.