Is my business savings account protected by the FSCS?

Yes, if your money is held with a UK-authorised bank or building society, it is usually protected by the Financial Services Compensation Scheme (FSCS). However, it is worth noting that eligible business savings are protected up to £120,000 per banking licence, not per brand. Because some financial brands share a single underlying licence, your protection limit is calculated across your combined balance with all of them. To check if your provider is covered and see how different brands are linked, you can use the FSCS Bank & Savings Protection Checker. Sole traders: your personal and business savings held with the same banking group are combined under one £120,000 limit. Limited companies or LLPs: your business is treated as a separate legal entity and is usually entitled to its own £120,000 protection, in addition to any personal cover you hold. If your business holds cash reserves above £120,000, it's generally considered best practice to diversify your funds across different banking licences to ensure your balance remains fully protected.

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 instant 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.

Do you pay tax on UK business savings accounts?

Yes. Any interest your business earns must be declared on your annual tax return. Business savings accounts pay interest gross, meaning the bank doesn't automatically deduct any tax from your earnings before paying you. How your interest is taxed will depend on your business structure. For a more detailed explanation, read our guide to business savings accounts. Please note: Tax rules can vary based on your specific business circumstances. Always seek professional advice if you need help understanding your tax responsibilities.

Are there any restrictions to opening a business savings account?

Yes. Providers usually have specific eligibility criteria that your business must meet to open an account. Common restrictions include: Business structure: Eligibility often depends on how your company is set up. For instance, an account may only be available to limited companies or sole traders, but not partnerships, charities, or clubs. Personal vs. business account rules: If your business is a limited company, you can't use a personal savings account for business funds, as the company is deemed a separate legal entity. However, you can use a personal savings account if you're a sole trader, as your personal and business finances are legally treated as the same. Tax residency and citizenship: Many UK banks require the business to be registered and tax resident only in the UK. This restriction often applies to all directors. Prohibited fund types: Standard business savings accounts generally cannot be used to hold client money on behalf of others, nor can they be set up as trust accounts.

Can I have more than one business savings account?

Yes. You can hold as many business savings accounts as you wish, and doing so can be a good strategy to effectively manage your company's cash. Opening multiple accounts offers two key advantages: Targeting different business purposes: You can mix and match account types depending on your cash flow needs. For example, you might keep emergency funds in an easy-access account for speedy availability, while also holding an amount in a fixed-rate account to earn higher interest. Maximising protection on larger balances: If your business holds substantial cash reserves, spreading your money across different banking licences allows you to stay fully covered under the £120,000 FSCS protection limit. However, there are two main drawbacks to bear in mind: Increased administration: The more accounts you have, the more admin there is in terms of managing them and keeping tabs on statements for tax purposes. Diluted interest rates: Depending on how much spare money you have, splitting your funds between several accounts might prevent you from hitting the higher balance thresholds that can unlock a provider's top-tier interest rates.

What information do I need to provide to open a business savings account?

The exact requirements vary between providers, but in general, you’ll need to prove your business is legitimate and supply identification for both yourself and the business. Here’s what you’ll typically need to provide when opening a business savings account in the UK: For all businesses: Proof of ID and address for all named individuals on the account (e.g. passport, driving licence, utility bill) Proof of business address Business bank account details (some providers only accept applications from existing business current account holders) Details about the nature of your business and its activity For sole traders and freelancers: Proof of trading status (e.g. HMRC registration or UTR (Unique Taxpayer Reference)) Business name (if trading under a different name) Estimated annual turnover (some accounts have a minimum or maximum turnover requirement) For limited companies and partnerships: Certificate of incorporation (Ltd companies only) Companies House registration number Details of all directors, partners, or shareholders Partnership agreement (if applicable) Other potential requirements: A minimum deposit. Some providers require an initial deposit of £1,000 or more Your expected annual turnover Tax residency status for all named individuals (for regulatory checks) Before you apply, it’s worth checking the provider’s eligibility criteria carefully to make sure your business qualifies.

Are there limits on how much I can withdraw and deposit?

Most UK business savings accounts have a maximum deposit limit, but this amount will vary by provider. Some accounts allow large deposits, while others cap the balance eligible for interest. Check your account’s terms before depositing large sums to ensure your funds are fully covered and earning interest. Many business savings accounts also have withdrawal restrictions. For instance, fixed-term savings accounts typically don't allow withdrawals before the end of the term without incurring a penalty. Instant or easy access accounts tend to offer more flexibility, though you may still have to wait a few days for the money to be transferred.

How long will it take to open a business savings account?

Opening a business savings account typically doesn’t take long, as long as you have all the required information ready. The process varies by provider, with some being faster than others. However, you can generally expect your account to be set up within a week or less.

Can I link my business savings account to a business current account?

Yes, you can typically link a business savings account to your business current account. Doing this will allow you to transfer funds easily between the two accounts, improving cash flow management and simplifying savings alongside daily business operations. It is worth checking with your provider for specific linking options and terms to ensure a smooth connection.

Can I manage my business savings account online or via a mobile app?

Most business savings accounts can be managed through online banking or a mobile app. This allows you to check balances, make transfers, and monitor interest earned right from your computer or smartphone. Many providers also offer direct integrations with popular accounting platforms like Xero or QuickBooks. Linking your banking tools directly to your software can streamline bookkeeping and make cash flow tracking much easier. Digital features and software connections vary by provider, so it's worth checking what tools are included before you apply.

Business savings accounts

Grow your business savings. See accounts offering rates up to 4.4%

Find the best business savings account to keep your money safe while earning interest

Compare business savings accounts

Explore a variety of high-paying business savings accounts from trusted UK providers

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Our best business savings accounts - July 2026

15 results found, sorted by Affiliated products first. How we order our comparisons. Commission earned affects the table's sort order.

Earn up to 4.08% AER (variable), interest paid monthly, FSCS protected

Allica Bank Instant Access Savings

Term

Instant access

Open with

£50,000

Interest rate

Up to4.08%AER variable

Continue

*Rate includes standard rate of 2.83% AER (minimum balance applies) plus a 0.5% boost each month if you make 15 bank transfers out of the account in the previous month, and a 0.5% boost for six months if you complete a switch with CASS.

Limited time +0.25% boost for 3 months for new customers depositing £50k+ into their Savings Pot within 14 days. Savings Pot is exclusive to Allica's Business Rewards Account. Eligibility criteria and T&Cs apply.

More Information

Rate Tiers

	Gross rate	Gross rate	AER	AER
	Excluding bonus	Including bonus	Excluding bonus	Including bonus
£40,000.00	2.79%	4.04%	2.83%	4.08%

Eligibility

Minimum Initial Deposit	£50,000
Minimum Age	18 years
Permanent UK Resident

Earn a boosted rate of up to 4% AER (variable), Start Saving with just £1

Tide Instant Saver - Up to 4%

Term

Instant access

Open with

£1

Interest rate

Up to4.00%AER variable

View deal

*Interest rates are tiered, with the top rate for balances between £1M and £10M. New Tide Members get these rates free for 4 months, after which your Tide plan’s rates apply.

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Rate Tiers

	Gross rate	Gross rate	AER	AER
	Excluding bonus	Including bonus	Excluding bonus	Including bonus
£1.00	3.69%	3.69%	3.75%	3.75%
£1,000,000.01	3.92%	3.92%	4%	4%
£10,000,000.01	0%	0%	0%	0%

Eligibility

Minimum Initial Deposit	£1
Minimum Age	18 years

Top up or access your savings instantly. No fees or charges

Virgin Money Business Access Savings Account

Term

Instant access

Open with

£1

Interest rate

3.50%AER variable

View deal

Save from £1 up to a maximum of £2 million with monthly interest. Rates are variable. Check the rate at point of application, as it may change. Terms and eligibility criteria apply

More Information

Rate Tiers

	Gross rate	Gross rate	AER	AER
	Excluding bonus	Including bonus	Excluding bonus	Including bonus
£1.00	3.45%	3.45%	3.5%	3.5%

Eligibility

Minimum Initial Deposit	£1
Minimum Age	18 years
Permanent UK Resident

At a glance Top rates today Do I need one?How to choose Pros and cons

AuthorJoe Phelan

EditorMatt Browning

Last updatedJune 25th, 2026

Business savings accounts at a glance

Who can open an account?

Eligibility depends on the provider, but most business savings accounts in the UK are available to sole traders, limited companies and partnerships. You’ll usually need basic business details and a linked business bank account to apply.

How do they work?

You can choose from instant access, notice, or fixed-term savings accounts. Interest rates vary depending on the account type and access terms, with fixed-term accounts generally offering higher returns for agreeing to keep your money invested for a set period.

How quickly can I get one?

Many accounts can be opened online in just a few minutes. In some cases, providers may take a little longer to verify your business details. Once opened, you can usually start saving straight away, subject to any funding or setup requirements from the provider.

A business savings account is a smart way to grow your funds while earning interest. The right account can help you manage cash flow, keep surplus capital secure, and support your long-term financial strategy, giving your business the flexibility to make the most of its savings.

We update our best UK business savings rates daily and provide a detailed breakdown of the different account types available, from instant access to fixed-term, so you can compare your options and find the right fit for your business.

Our highest business savings rates - last updated Jul 1 2026

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 be further down the results table. This list is updated daily.

Product type	AER
Instant access	4.08%	See deals
Notice	3.70%	See deals
Fixed term	4.40%	See deals

Business savings accounts at a glance

What types are available?

The main options are easy access accounts (withdraw anytime, variable rate), notice accounts (give 30-180 days’ notice for a higher rate), and fixed-rate bonds (lock money away for 1-5 years for the best rates).

What rates can I get?

Rates depend on account type and how long you can tie up your money. Fixed-rate bonds typically pay the most, followed by notice accounts, with easy access offering lower but more flexible returns. Use the AER to compare accounts on equal terms.

Who can open one?

Most providers accept UK-registered businesses including sole traders, partnerships, and limited companies. Some accounts have minimum turnover or trading-history requirements, or are restricted to specific business types, so check eligibility before applying.

What is a business savings account?

A business savings account is specifically designed for businesses to earn interest on their savings. Sole traders, partnerships, and limited companies can all open one, typically using it to set aside cash for tax bills, emergencies, or future investment. Any interest earned counts as business income and is taxable, so it's worth factoring into your accounting.

Do I need a business savings account?

A business savings account can help your finances stay organised, protect your cash, and make the most of surplus funds.

Build a financial cushion

Set aside extra funds to cover unexpected costs, seasonal slowdowns, or sudden expenses.

Improve cash flow management

Keep savings separate from daily spending to better track your money and stay financially organised.

Prepare for tax and future expenses

Have money ready for HMRC payments, upcoming bills, or planned investments in your business.

Earn more on idle cash

Make surplus funds work harder with higher interest than a current account, with FSCS protection on eligible deposits.

Find the savings account that suits your business goals

The right business savings account depends on how and when you’ll need access to your money. Here’s how different types of accounts can help businesses like yours:

Flexible day-to-day access

If you want to earn interest but may need your cash quickly, an instant or easy access account is ideal. Perfect for businesses that handle seasonal sales or frequent expenses, as you can deposit or withdraw funds when needed.

Planning for short-term projects

Notice accounts suit businesses that can plan ahead for withdrawals. By giving notice before taking money out, you can often earn slightly higher interest than an instant access account, which can be ideal when managing funds for upcoming projects or supplier payments.

Longer-term savings goals

Fixed-term accounts work best if you can lock away funds for a set period, such as six months to five years. These accounts usually offer the highest interest rates and are great for businesses saving for major investments or building a longer-term financial cushion.

What to check before you open an account

1. How easily you can access your business savings

Make sure you can get to your money when you need it. Some business savings accounts allow instant withdrawals, while others require notice or lock funds away for a fixed term.

2. Minimum balance requirements

Some accounts require a minimum opening deposit or ongoing balance. Check you can meet these conditions, as falling below them could mean fees or reduced interest.

3. Business savings rates and flexibility

A higher rate can come with restrictions. Think about whether locking money away for months or years is worth the extra interest compared with easier access.

4. Protection and provider reputation

Most UK business savings accounts are covered by the Financial Services Compensation Scheme (FSCS), which protects eligible deposits up to £120,000 if a provider goes bust. If you hold more than this amount, consider spreading your savings across multiple accounts to stay fully protected.

Why choose money.co.uk?

Free to use

Our platform is completely free to use. Find the best savings account for your business in minutes.

Competitive rates

Access competitive rates from some of the biggest names in business banking.

Experts in finance

We’ve been supporting businesses like yours for two decades, offering expert guidance and practical insights.

Eligibility criteria

Criteria	In 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

Some providers may also have additional eligibility requirements, so be sure to check the terms before starting an application.

Compare business savings accounts

Explore a variety of high-paying business savings accounts from trusted UK providers

See accounts

What 2026 savings rates mean for your business

Following the Bank of England base rate cut to 3.75% in December 2025, business savings rates have generally fallen, although some fixed-term accounts still offer returns of around 4.1%.

At the beginning of 2026, markets expected multiple rate cuts over the year, but that outlook has shifted. Rising energy costs and persistent inflation mean many economists now expect the Bank of England to raise interest rates, or at least keep them higher for longer, rather than cut them.

For businesses holding surplus cash, rising rates could improve returns. With the economic and geopolitical landscape changing quickly, it’s important to monitor rates and review your savings strategy regularly, as what’s competitive today may shift in the coming weeks.

The next base rate decision is due on Thursday 30 July.

The percentage of SMEs that plan to increase cash reserves in 2026^[1]

34%

Rates are subject to change. We recommend double-checking the provider's site for the latest figures before applying for an account.

Interest earned on a 4.1% one-year fixed-term savings account

Updated 25 June 2026

Savings deposited	Interest earned over one year
£10,000	408
£20,000	816
£30,000	1224
£40,000	1644
£50,000	2052
£85,000	3480

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

Pros and cons of business savings accounts

Pros

Earn interest on surplus cash from your business current account(s): Move extra funds out of your business current account(s) and earn interest instead of leaving money sitting idle.

Typically offer higher rates than business current accounts: Business savings accounts are designed to pay interest, so rates are usually better than current accounts.

Range of access options: Choose between easy access or fixed-term accounts, depending on how often you need your money.

Helps with budgeting and cash management: Separating savings can make it easier to plan for tax bills or future expenses.

Cons

May need a minimum balance for top rates: Some accounts only pay the best rates if you keep a certain amount deposited.

Interest is usually taxable: Any interest earned typically counts as business income and may be taxed.

Rates can change: Variable rates can go up or down over time, affecting your returns.

“Think of a business savings account as part of your growth strategy. Building reserves can give you the breathing room to invest in opportunities, weather quiet months, or upgrade equipment without scrambling for credit.”

Joe Phelan

SME Editor

Business savings account FAQs

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

The gap between entry-level business rates and specialist savings products has widened

The business savings audit: is your cash working as hard as it could be?

The benefits of a business savings account

How business savings accounts can help SMEs to grow

Find more guides here

About the author

Joe Phelan

Joe joined the money.co.uk team in 2024, where he helps small business owners navigate the often confusing world of business finance. His role is to cut through the jargon and create clear, actionable content that empowers entrepreneurs to make confident financial decisions.