Compare business savings account

Find some of the best business savings accounts by comparing those that could offer you a better return on your money or one with more flexibility with easier access to your funds.

  • Earn returns on surplus cash
  • Compare terms, rates and products
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Compare business savings accounts from leading providers

Looking through a range of options gives you more chance of securing a great deal. You'll only find results from genuine companies. Our data experts check each company before we add them to our comparisons.

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How to compare business savings accounts

1

Prepare a business plan

If your business has surplus cash a business savings account could be a good option. Decide how much access you need to the money and how much your business can afford as a minimum balance.

2

Compare your options

Have a look through the options to find the best business savings account. The terms and management of the account can vary between providers so check any conditions attached to the account.

3

Apply for the account

Once you've chosen the right savings account for your business, all you need to do is make and application and will likely have to provide some details about your business.

Business savings account deals

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Why should you get a business savings account?

If your business has a large amount of surplus cash currently sitting in your business account then you may want to look for a business savings account to get a better return on your funds.

That way if the unexpected happened, such a loss in sales, a loss of a key team member, or even a pandemic, you would have the necessary funds to get by till things improve.

What do I need to know about business savings accounts?

With a business savings account, you can usually find a higher interest rate than with a standard business current account. This means they will offer a better return on your business's cash reserves.

When considering the type of business savings account you need, make sure to think about when you will need those funds, and how you would want to access the money.

Types of business savings accounts

Instant access account

If you are going to need to access the money at short notice then this type of account will allow you to freely deposit and withdraw funds at your convenience while paying you interest on the money held in the account.

Fixed term savings account

These accounts lock your funds away for set term, at a fixed interest rate, but offer a better return as a result. The terms for these can range from 1 to 5 years, during which you won't be able to withdraw your funds without paying a penalty.


Notice savings accounts

This account requires that businesses give notice to withdraw their funds. The notice periods can vary from bank to bank, ranging from seven days to up to 180 days or more.

How to find the best business savings accounts

Finding the best home for your business assets is vital if you want your company to be as profitable as possible. Opening a business savings account that offers a a good interest rate could be the answer.

As with personal savings accounts, business savings accounts can come in a variety of different guises and picking the best business savings account will depend on your circumstances, for example whether you have a small business or a sole trader.

How to choose the best business savings accounts account

When choosing a new business savings account, it's best to consider your options carefully before applying:

  • Returns vs flexibility: Typically, the more restrictive the savings account the higher the interest rate. You essentially pay for the flexibility by getting a lower interest rate. Think about what's important to you before you apply.

  • Access: Providers can vary in how you'll be able to operate your business savings account. This could be through online banking, post, phone or a combination of these. While most providers give you access to internet banking these days, it isn't a given.

  • Minimum balance: Most banks or providers will require a minimum balance to open the account. This also means that you'll have to maintain this balance throughout, or you'll be charged a penalty if it falls below.

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

If you have a business that is a limited company, it means that the business 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 be able to use a personal savings account for your business.

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

The required minimum balance depends on the type of account you open.

  • Instant access accounts: These can be opened with as little as £1 as a starting balance.

  • Notice accounts: These typically require a minimum balance of £100.

  • Fixed term accounts: Minimum balances for these can be £1,000 and above.

Keep in mind that that these are general guidelines and minimum balances can vary depending on provider.

How are business savings taxed?

Tax on business savings depends on the kind of business you have and the interest you earn.

Typically, any interest earned on business savings is paid in gross, i.e. without the tax deducted. This means that you'll need to make sure you account for any interest earned and that it is taxed appropriately in your annual tax return.

Business savings accounts FAQs

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Why compare savings accounts deals with money.co.uk?

Comparing savings accounts could save you money. Our multiple award-winning comparison service makes sure you get the lowest fees and rates possible based on your individual circumstances. Our aim is to provide you with the most up-to-date information, as well as useful tools and calculators so to help you make life's most important decisions and take control of your money.

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Last updated: 12 April, 2022