It is not as simple as choosing the account with the highest interest rate.
There are two things to consider before choosing a business savings account:
How much you want to open the account with: Some can be opened with as little as £1 but others require as much as £50,000.
How much access you want: Some offer instant access, others require you to give notice to withdraw or even tie your money up for a set term, such as 6 or 12 months.
What is a business savings account?
It is a savings account designed for businesses, with some accounts also available to charities, there are three main types:
Instant access: You can withdraw and add money at any time.
Notice: You need to give notice to make a withdrawal, such as 35 days.
Fixed term: Your money is tied up in the account for a set term, usually with a fixed interest rate. For example, 1.2% for 1 year.
How to find the best rate
Our business savings table shows each account's AER (annual equivalent rate) so you can compare them based on the interest you could earn over a whole year.
There are three ways an interest rate is offered:
Fixed: The rate stays the same for the term of the account, for example 12 months.
Variable: The rate could change at any time.
Fixed or variable rate based on amount saved: The rate differs depending on the amount held in the account. This rate could also change at any time if variable, but stays the same if fixed.
Some business savings accounts offer a higher interest rate if you save a large amount of money, such as £100,000, but offer a lower rate for smaller balances.
Business savings account FAQs
Can I open any type of savings account for my business?
No, you can only open a business savings accounts on behalf of your business, unless you are a sole trader. Find out more here.
Can I open a business account if I am self employed?
Yes, but only if you are at least 18 years old, based in the UK and the owner or director of your business. Here is how to open a business savings account.
How many business savings accounts can I have?
As many as you want, you just need to declare any interest you make from each one on your self assessment form at the end of the tax year.
Do I pay tax on a business savings account?
Yes, you need to declare the interest you make from your business savings on your self assessment form at the end of each tax year. Find out more here.
What is AER?
It is the Annual Equivalent Rate which tells you how much interest you will actually get paid until the end of the term of your chosen savings account.