Compare business client accounts

Find out how business client accounts work and who they are suitable for.

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Product Interest rate and type Interest paid Invest Term Open via Incentive Table product description
State Bank of India – Business Fixed Deposit
State Bank of India logo
4.6% AER fixed
On maturity
£10,000 - £1,000,000
182 days
Open via: branch, post.
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State Bank of India – Business Fixed Deposit
State Bank of India logo
4.5% AER fixed
On maturity
£10,000 - £1,000,000
274 days
Open via: branch, post.
Go to siteView details
State Bank of India – Business Fixed Deposit
State Bank of India logo
4.45% AER fixed
On maturity (compounded annually)
£10,000 - £1,000,000
1 year
Open via: branch, post.
Go to siteView details
State Bank of India – Green Fixed Deposit
State Bank of India logo
4.35% AER fixed
On maturity (compounded annually)
£10,000 - £5,000,000
5 years
Open via: branch.
Green - Funds under this Scheme will only be used towards enviromentally friendly current and future lending/ Green Mortgages portfolio.
Go to siteView details
State Bank of India – Green Fixed Deposit
State Bank of India logo
4.35% AER fixed
Anniversary of account opening
£10,000 - £5,000,000
5 years
Open via: branch.
Green - Funds under this Scheme will only be used towards enviromentally friendly current and future lending/ Green Mortgages portfolio.
Go to siteView details
State Bank of India – Business Fixed Deposit
State Bank of India logo
4.3% AER fixed
On maturity (compounded annually)
£10,000 - £1,000,000
2 years
Open via: branch, post.
Go to siteView details
State Bank of India – Business Fixed Deposit
State Bank of India logo
4.3% AER fixed
Anniversary of account opening
£10,000 - £1,000,000
2 years
Open via: branch, post.
Go to siteView details
State Bank of India – Business Fixed Deposit
State Bank of India logo
4.25% AER fixed
On maturity (compounded annually)
£10,000 - £1,000,000
5 years
Open via: branch, post.
Go to siteView details
State Bank of India – Business Fixed Deposit
State Bank of India logo
4.25% AER fixed
Anniversary of account opening
£10,000 - £1,000,000
5 years
Open via: branch, post.
Go to siteView details
State Bank of India – Green Fixed Deposit
State Bank of India logo
4.25% AER fixed
On maturity (compounded annually)
£10,000 - £5,000,000
3 years
Open via: branch.
Green - Funds under this Scheme will only be used towards enviromentally friendly current and future lending/ Green Mortgages portfolio.
Go to siteView details
State Bank of India – Green Fixed Deposit
State Bank of India logo
4.25% AER fixed
Anniversary of account opening
£10,000 - £5,000,000
3 years
Open via: branch.
Green - Funds under this Scheme will only be used towards enviromentally friendly current and future lending/ Green Mortgages portfolio.
Go to siteView details
Progressive BS – Business - 18 Month Fixed Rate Bond Issue 2
Progressive Building Society logo
4.2% AER fixed
Yearly
£1 - £3,000,000
1.5 years
Open via: branch, post.
Go to siteView details
State Bank of India – Business Fixed Deposit
State Bank of India logo
4.15% AER fixed
On maturity (compounded annually)
£10,000 - £1,000,000
3 years
Open via: branch, post.
Go to siteView details
State Bank of India – Business Fixed Deposit
State Bank of India logo
4.15% AER fixed
Anniversary of account opening
£10,000 - £1,000,000
3 years
Open via: branch, post.
Go to siteView details
Progressive BS – Business - 2 Year Fixed Rate Bond (Issue 7)
Progressive Building Society logo
4.15% AER fixed
Yearly
£5,000 - £3,000,000
2 years
Open via: branch, post.
Go to siteView details
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Business client accounts can enable professional practices to ring-fence clients’ money from other business activities and can be used to handle and pay deposits and rents. Here’s how they work.

What is a client account?

A client account is a bank account that enables businesses to hold their clients’ funds in separate accounts. It can be suitable for professional practices or other businesses that hold clients’ money. This can include solicitors, accountants, insurance brokers and estate agents or property managers.

Property managers can use client accounts to hold tenants’ service charges and security deposits, for example, while solicitors might use them to manage financial and property transactions.

A client account is legally required for any company that handles investments on a client’s behalf. It protects that money in the event the company becomes insolvent.

How does a client account work?

There are 2 main types of client accounts – designated and undesignated accounts.

Designated accounts let businesses hold their clients’ individual funds in separate accounts. This is suitable for auditors, accountants and tax advisers. The money in the account can be accessed easily and might earn interest, depending on the account.

Alternatively, undesignated (or pooled) accounts enable businesses to hold multiple clients’ funds in a shared account with 1 account number. This can be suitable for accountants, solicitors or insurance brokers. Again, money can be accessed easily, and interest might be paid on the account.

You might be able to open a client account online, in your nearest bank branch or over the phone. The account can only hold money on behalf of your clients and can’t be used to make payments for your own business.

Are client accounts protected by the FSCS?

Yes, the Financial Services Compensation Scheme (FSCS) protects deposits held in client accounts the same way it protects individual deposits. That means up to £85,000 per person per financial institution is covered.

On top of this, there is a provision for temporary high balances of up to £1 million per person, per banking group for 6 months. This protection is important for law firms that often hold large amounts of client money for short periods – for example, if they are carrying out a conveyancing transaction. Each claim is considered on a case-by-case basis. You can find out more on the FSCS website.

Bottom line

Business client accounts can help professional firms hold client money safely and securely, but as with any other type of account, it pays to compare options carefully. Make sure you check whether there is a minimum deposit requirement, whether the account pays interest and whether there are any monthly or transaction charges.

We show offers we can track - that's not every product on the market...yet. Unless we've said otherwise, products are in no particular order. The terms "best", "top", "cheap" (and variations of these) aren't ratings, though we always explain what's great about a product when we highlight it. This is subject to our terms of use. When you make major financial decisions, consider getting independent financial advice. Always consider your own circumstances when you compare products so you get what's right for you. Most of the data in Finder's comparison tables has the source: Moneyfacts Group PLC. In other cases, Finder has sourced data directly from providers.
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Rachel Wait is a freelance journalist and has been writing about personal finance for more than a decade, covering everything from insurance to mortgages. She has written for a range of personal finance websites and national newspapers, including The Observer, The Mail on Sunday, The Sun and the Evening Standard. Rachel is a keen baker in her spare time. See full bio

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