Compare our best business savings account

Earn up to 5.15% with a business savings account

Business savings accounts will protect your funds until you need them for a rainy day

Business savings accounts

Find the right account for your business by comparing leading providers
Recognise BankMonzoHarpenden Building SocietyAllica BankNatWestRedwood BankTideCynergy BankRecognise BankMonzoHarpenden Building SocietyAllica BankNatWestRedwood BankTideCynergy Bank
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Last updated
February 6th, 2024

This type of savings account is specifically for businesses, and it can be a great way to earn interest while effectively managing your finances.

Here, we update our best rates daily and look at the pros and cons of having a business savings account so you can find the right account for your needs. Plus, we'll give you an overview of the other financial products you might want to consider for your business.

Our best business savings accounts rates - last updated Apr 16 2024

Our highest interest rates for a range of business savings accounts available in the UK. Be aware that the products with the highest interest rates may often be further down the results table. This list is updated daily.  
Product typeAER
Instant Access4.33%
Notice5.01%
Fixed term5.15%

What is a business savings account?

A business savings account is similar to a personal savings account as it allows you to earn interest on a sum of money that you don’t wish to spend. 

A business savings account also acts as an alternative to a current account, where you might be earning little to no interest. This means you can use a business savings account as a way to grow your business’ wealth and it acts as a safety net if you suddenly have a large business expense.

A savings account can act as a safety net if you have an unexpected business expense."

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Do I need a business savings account?

There are many reasons why you might need a business savings account, but the main thing to consider is you could be making some extra money from the surplus cash you have in the business. You’ll usually find higher interest rates in a business saving account rather than a current account, so it makes sense to move your money.

Most business savings accounts are also covered by the FSCS, which is a government scheme that protects your savings up to £85,000 in case the provider goes bust. If you have more than this amount in your savings pot, it's a good idea to split up your savings and open multiple savings accounts to ensure you are fully protected.

It’s also important to note, if your company is registered with companies house then you are legally required to keep your business finances separate from your personal account.

Freelancers and sole traders don’t have this same legal requirement but it would still be worthwhile considering a business savings account if you already have a business bank account.

Median profit of all SMEs in the UK [1]
£12,000

Am I eligible for a business savings account?

If you would like to open a business savings account then you’ll need to have a business current account, as this is the only way to move money in and out of your account.

The good news is that your business current account and business savings account can be with different providers, so you can always find the best deal for you.

Other eligibility criteria includes being a UK-based business and account users have to be at least 18 years old.

Different providers may have more eligibility checks, so always check the terms"

Eligibility criteria
CriteriaIn order be eligible
Do I need to have a business current account?Yes
Do I need to be over 18?Yes
Does my business need to be based in the UK?Yes

How to choose a business savings account

As there are different types of savings accounts, it's important you choose the right one for your business.

Accessibility of funds

It’s important that you can access your money when you need it, so always check with the provider how the account will be operated. Is it all online? Will you need to go into a branch to set it up? These are all essential questions to ask before choosing an account.

Minimum balance

Some business savings accounts ask for a minimum balance to open the account and you’ll need to have at least this money in the account at all times. Make sure you can meet this requirement as otherwise you might be charged a penalty.

Cost of return

The interest rate of a savings account will always catch your attention, but choosing the account with the best rate won’t always mean it’s the right one for your business. For example, if you have to lock away your money for five years to get the top rate, you have to consider if this lack of accessibility is worth the higher rate?

Types of business savings accounts

Instant and easy access accounts

If you would like to earn interest on your business’ savings, but might need to access it then an instant or easy access account is a good option. These accounts offer flexibility as you can withdraw and deposit when you wish, but note easy access accounts sometimes have restrictions attached so you might only be able to withdraw a few times a year.

Notice savings accounts

A notice savings account requires you to give notice before withdrawing, but notice periods can range from seven days to 180 days so you can find one to suit your needs. Depending on the notice period, you can normally get a higher interest rate than an instant access as there is slightly less flexibility involved.

Fixed-term savings accounts

If you won’t need to touch your savings for a period of time, then it’s worth exploring a fixed-term savings account. The terms range from six months to five years, but it will give you the opportunity to take advantage of higher interest rates. However, only choose a fixed-term if you definitely won’t need the money, as you will be penalised for withdrawals before the term ends.

Types of business savings accounts

Instant and easy access accounts

If you would like to earn interest on your business’ savings, but might need to access it then an instant or easy access account is a good option. These accounts offer flexibility as you can withdraw and deposit when you wish, but note easy access accounts sometimes have restrictions attached so you might only be able to withdraw a few times a year.

Notice savings accounts

A notice savings account requires you to give notice before withdrawing, but notice periods can range from seven days to 180 days so you can find one to suit your needs. Depending on the notice period, you can normally get a higher interest rate than an instant access as there is slightly less flexibility involved.

Fixed-term savings accounts

If you won’t need to touch your savings for a period of time, then it’s worth exploring a fixed-term savings account. The terms range from six months to five years, but it will give you the opportunity to take advantage of higher interest rates. However, only choose a fixed-term if you definitely won’t need the money, as you will be penalised for withdrawals before the term ends.

Our best easy access business savings account

Our editors have picked out their top easy access with a competitive interest rate. This type of savings account is great if you would like to earn interest on your savings but also have the flexibility to withdraw at a time that suits your business.

Editor’s pick

Tide's instant access account offers a competitive 4.33% AER variable on your business savings. The interest is also paid monthly and there are no limits or fees on withdrawals - making this account incredibly flexible.

Author image
savings expert
Card
Tide Instant Saver
Term
Instant access
Open with
Any amount
Interest rate
4.33% AER variable
Show Details
Eligibility
Minimum Initial Deposit
£0
Editor’s pick
Card
Tide Instant Saver
Term
Instant access
Open with
Any amount
Interest rate
4.33% AER variable
Show Details
Eligibility
Minimum Initial Deposit
£0

Tide's instant access account offers a competitive 4.33% AER variable on your business savings. The interest is also paid monthly and there are no limits or fees on withdrawals - making this account incredibly flexible.

Author image
savings expert

Our best notice business savings account

Our editors have picked their top notice savings account with a competitive interest rate. This account is best if your business doesn't need the money urgently and you are happy to wait a specific notice period before withdrawing.

Editor’s pick

A notice savings offering that essentially splits the difference between rates offered by fixed term and easy access at 5.01% AER variable. You have to give 6 months notice to withdraw, but a slight downside is that you need £20,000 to open one.

Author image
Senior Personal Finance Editor
Card
Allica Bank 180 Day Notice Account
Term
180 days notice
Open with
£20,000
Interest rate
5.01% AER variable
Show Details
Eligibility
Minimum Initial Deposit
£20,000
Permanent UK Resident
YES
Editor’s pick
Card
Allica Bank 180 Day Notice Account
Term
180 days notice
Open with
£20,000
Interest rate
5.01% AER variable
Show Details
Eligibility
Minimum Initial Deposit
£20,000
Permanent UK Resident
YES

A notice savings offering that essentially splits the difference between rates offered by fixed term and easy access at 5.01% AER variable. You have to give 6 months notice to withdraw, but a slight downside is that you need £20,000 to open one.

Author image
Senior Personal Finance Editor

Our best fixed-term business savings account

Our editors have picked out their top fixed-term business savings account with a competitive interest rate. A fixed-term savings account works best when you have a lump sum that you won't need for a specific number of years. Bear in mind that if you try and withdraw before the end of the term you will be penalised.

Editor’s pick

A fixed term account offering our best business savings rate at 5.15% AER fixed. The term is fixed for 1 year, so you won't have access to your money for 12 month and you'll need £20,000 to open it.

Author image
Senior Personal Finance Editor
Card
Allica Bank 1 Year Fixed Rate Account
Term
1 year
Open with
£20,000
Interest rate
5.15% AER fixed
Show Details
Eligibility
Minimum Initial Deposit
£20,000
Permanent UK Resident
YES
Editor’s pick
Card
Allica Bank 1 Year Fixed Rate Account
Term
1 year
Open with
£20,000
Interest rate
5.15% AER fixed
Show Details
Eligibility
Minimum Initial Deposit
£20,000
Permanent UK Resident
YES

A fixed term account offering our best business savings rate at 5.15% AER fixed. The term is fixed for 1 year, so you won't have access to your money for 12 month and you'll need £20,000 to open it.

Author image
Senior Personal Finance Editor
Interest earned on a 4.1% one-year fixed-term savings account
This is an example of how much interest businesses could be earning if they put a lump sum into a one-year fixed-term account.

4.1% used for illustrative purposes as rates can change and figures are before tax.

Pros and cons

Pros

Protect surplus cash
Money for a rainy day or unexpected business expense
Earn a competitive interest rate
Some accounts can be easy to open and access

Cons

Some savings accounts require a minimum balance
There are some accounts that have monthly costs and fees
Interest rates might not keep up with inflation, which reduces purchasing power

Do I pay tax on business savings accounts?

It is your responsibility to pay tax on any interest you earn on the savings account and declare it as part of your annual tax return. Tax deductions are not included because business savings accounts advertise their interest rates as gross. 

To find out more about the tax implications, read our guide about the differences between a sole trader and limited company.

Other products for your business

Business bank accounts

A business current account is specifically designed for businesses to manage their finances. It provides banking services such as receiving and making payments, managing cash flow, and keeping business and personal transactions separate.

Business loans

A business loan is a way to get extra funds to run or grow your business successfully. The loan could cover rent for your business’ property, employee salaries or opening new offices.

Business credit cards

A business credit card works in a similar way to a personal credit card, and they can help businesses with cash flow or unexpected expenses.

Business charge cards

Business charge cards provide a convenient way to make purchases and manage expenses, but unlike credit cards, they require the full payment of the outstanding balance each month.

Other products for your business

Business bank accounts

A business current account is specifically designed for businesses to manage their finances. It provides banking services such as receiving and making payments, managing cash flow, and keeping business and personal transactions separate.

Business loans

A business loan is a way to get extra funds to run or grow your business successfully. The loan could cover rent for your business’ property, employee salaries or opening new offices.

Business credit cards

A business credit card works in a similar way to a personal credit card, and they can help businesses with cash flow or unexpected expenses.

Business charge cards

Business charge cards provide a convenient way to make purchases and manage expenses, but unlike credit cards, they require the full payment of the outstanding balance each month.

Business savings accounts can really help you make the most out of your business' finances. Whether it's cash you've set aside for tax, money for staff bonuses or unexpected profits - competitive business savings account rates mean you could earn more interest on your income than you otherwise might in a low-interest current account

FAQs

Can you use a personal savings account instead of a business savings account?

It depends. If you have a business that is a limited company, it means that the business is its own entity and separate from your personal finances. The only exception is if you're a sole trader. As a sole trader, you and your business are the same entity, so you'd be able to use a personal savings account for your business.

How much is the minimum balance to open a business savings account?

The minimum balance to open a business savings account will vary depending on the type of account you wish to open. For example, an interest access could be opened with as little as £1 but a fixed-term account might need a minimum deposit of £1,000. It’s always important to check the terms and conditions for each provider.

Are business savings accounts protected by the FSCS?

Yes, business savings accounts are protected by the FSCS on bank deposits of small businesses up to £85,000.

The FSCS will also protect other types of business including unincorporated organisations, partnerships and sole traders. However, in the case of sole traders, personal accounts and business accounts are not treated as separate accounts and will come under a single claim.


Are there any restrictions to opening a business savings account?

Yes, some business savings accounts are only available to certain types of business. For example, one type of account may only be eligible to a limited company or a sole trader, but not for a charity.

Do business savings accounts have withdrawal restrictions?

Yes, business savings accounts do have withdrawal restrictions. For example, fixed-term savings accounts don't allow you to withdraw money before the end of term without paying a penalty. Instant or easy access savings accounts have no restrictions. However with an easy access account, you may have to wait a few days before the money is transferred.

Learn more about business savings accounts

Find out more about how business savings accounts work with our in-depth guides
You could be making interest on your business' spare cash by moving it into a business savings account.
Business savings accounts explained
It is tougher than ever to make money from your savings, but you could get a better return if you expand your search.
Can you still get a decent return on your savings?
Explore how interest works on your savings and how tax can affect what you get as a return.
How does savings interest and tax work?

About the author

Lucinda O'Brien
Lucinda O'Brien has spent the past 10 years writing and editing content for regional and national titles. She applies her industry knowledge to ensure readers can make confident financial decisions.

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References

1. Report from Statista: Recent UK business statistics from Statista found that the median profit of SMEs in the UK was approximately £12,000 in 2022