If you would like to earn interest on your business’ savings, but might need to access it quickly, 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 that some easy access accounts sometimes have restrictions attached, meaning you might only be able to withdraw a few times a year.
Business savings accounts
Grow your business savings with rates up to 4.52%
Whether you're after an instant access, notice or fixed-term account, find the right business savings account to keep your funds safe while earning interest
A business savings account is an effective way to grow your business funds while earning interest. The right account can help you manage cash flow, provide a secure place for surplus capital, and be a key part of your long-term financial strategy, allowing you to make the most of your business savings while retaining flexibility.
We update our best 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 best business savings rates - last updated Jun 3 2025
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 | 4.22% | |
| Notice | 4.52% | |
| Fixed term | 4.25% |
What is a business savings account?
A business savings account is similar to a personal savings account. It allows you to earn interest on a sum of money that you don’t need to spend right away.
A business savings account also acts as an alternative to a business bank 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, which can act as a safety net if you suddenly have an unexpected business expense.
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Do I need a business savings account?
A business savings account helps your company earn interest on surplus funds, offering higher rates than a current account.
Here are a few ways a business savings account can support your business:
Build a financial cushion: Set aside surplus funds to cover unexpected costs or seasonal slowdowns
Manage cash flow more effectively: Keep savings separate from daily spend to stay financially organised
Save for tax bills and future expenses: Be ready for HMRC and upcoming outgoings
Earn more on idle funds: Put your surplus cash to work with higher interest than a current account
Protection and security
Most business savings accounts are also covered by the Financial Services Compensation Scheme (FSCS), a government scheme that protects your savings up to £85,000 in the case that a provider goes bust.
If you hold more than this amount, consider spreading your savings across multiple accounts to stay fully protected.
While many small UK businesses rely on credit to manage their finances, building up a contingency fund through savings is a more secure long-term strategy. In fact, over 40% of businesses we surveyed said they use a savings account to help manage cash flow.
Also, it's important to note that if your company is registered with Companies House, you're legally required to keep your business and personal finances separate.
Freelancers and sole traders don’t face the same legal requirement, but opening a business savings account can still help keep your finances organised and improve cash flow.
Median profit of all SMEs in the UK [1]
£12,000
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 quickly, 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 that some easy access accounts sometimes have restrictions attached, meaning 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 be sure to 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.
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 for the fixed period set out in the terms of the account. You may be penalised for withdrawals before the term ends.
Types of business savings accounts
Instant and easy access accounts
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 be sure to 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.
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 for the fixed period set out in the terms of the account. You may be penalised for withdrawals before the term ends.
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.
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.
How to choose the right savings account for your business
As there are different types of savings accounts, it's important you choose the right one for your business.
Check 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 and when you can access your funds. For example, can you access your money at any time, or do you need to give notice?
Assess minimum balance requirements
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.
Consider the cost of returns
Choosing the account with the best interest 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.
Our best easy access business savings account
Our editors have picked out their top easy access savings account 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 Up to 4.22% 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.”
Tide Instant Saver
Term
Instant access
Open with
£1
Interest rate
Up to 4.22% AER variable
Show Details
Eligibility
Minimum Initial Deposit
£1
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 4.20% AER variable. You have to give 6 months notice to withdraw, but a slight downside is that you need £20,000 to open one. ”
Allica Bank 180 Day Notice Account
Term
180 days notice
Open with
£20,000
Interest rate
4.20% AER variable
Show Details
Eligibility
Minimum Initial Deposit
£20,000
Permanent UK Resident
YES
Our best fixed-term business savings account
Our editors have selected their top fixed-term business savings account, offering a competitive interest rate. A fixed-term savings account is ideal when you have a lump sum of money that you won’t need access to for a set period. Keep in mind that early withdrawals are subject to penalties, so it’s important to be certain you can lock away your funds for the full term.
Editor’s pick
A fixed term account offering our best business savings rate at 4.25% 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. ”
Allica Bank 1 Year Fixed Rate Account
Term
1 year
Open with
£20,000
Interest rate
4.25% AER fixed
Show Details
Eligibility
Minimum Initial Deposit
£20,000
Permanent UK Resident
YES
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
Earn interest on your business' money
Build up funds for a rainy day or unexpected bills and expenses
Pick from a range of account types such as easy access and notice
Cons
You may need to maintain a minimum balance
Some accounts may offer less flexibility on accessing your money
Interest rates can fall after initial introductory period
Disclaimer: Interest rates and account terms may change. Always check the provider’s website for the most up-to-date information before opening an account.
Do I pay tax on business savings accounts?
It is your responsibility to pay tax on any interest you earn on a business 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 and pay interest as gross.
Tax treatment can vary depending on your business structure. For example, whether you're a sole trader or a limited company.
We’ve put together a detailed guide that explains how tax on business savings works, including the key differences between business types. Read the full guide here.
Other products to support your business growth
Business current accounts
A business current account is specifically designed for businesses to manage their finances. It provides common banking services and features such as overdrafts, accounting and payroll software to help with finance management and ensure businesses appear professional to clients and customers. A business current account is great for accessibility, so it works well for businesses that need to withdraw and deposit funds regularly.
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.
Invoice finance
Invoice finance can help make cash flow more predictable and reliable. It allows you to access the funds from invoices before your customer or client has settled an outstanding invoice.
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 to support your business growth
Business current accounts
A business current account is specifically designed for businesses to manage their finances. It provides common banking services and features such as overdrafts, accounting and payroll software to help with finance management and ensure businesses appear professional to clients and customers. A business current account is great for accessibility, so it works well for businesses that need to withdraw and deposit funds regularly.
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.
Invoice finance
Invoice finance can help make cash flow more predictable and reliable. It allows you to access the funds from invoices before your customer or client has settled an outstanding invoice.
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.
FAQs
Can I use a personal savings account instead of a business savings account?
If your business is a limited company, you cannot use a personal savings account, as the business is a separate legal entity. However, if you're a sole trader, you can use a personal savings account for your business, as your business and personal finances are considered one and the same.
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.
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.
Can I have more than one business savings account?
Yes, you can open more than one business savings account. Just bear in mind that the more accounts you have, the more admin there might be in terms of opening and maintaining them. And depending on the amount of spare money you have, you might not make the most amount in interest if you split your funds between several accounts.
Do business savings accounts have withdrawal restrictions?
Many business savings accounts do 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.
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:
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.
Can sole traders open a business savings account?
Yes, sole traders can open a business savings account. Many providers offer accounts specifically designed for sole traders, allowing you to separate your personal and business finances while earning interest on your savings.
To open an account, you’ll typically need to provide proof of your identity, address, and evidence of your trading activity, such as a tax return or proof of income.
A business savings account can help sole traders manage their finances more effectively, build a safety net for unexpected expenses, and save for future business investments.
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.
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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 2023