Business savings accounts

Is your UK business looking for a savings account? Find and open an account with rates up to 5.7%.

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By

Michelle Stevens

Reviewed by

Kate Steere

Updated

Fact checked
A business savings account is a bank account where businesses can deposit funds that they would like to put to one side to save, or they might want to grow by gaining interest. These accounts are available to all types of businesses, although there are different savings account options to choose from. We have a separate guide on savings accounts for charities and clubs.

Compare business savings accounts

Table: sorted by interest rate, promoted deals first
1 - 15 of 429
Updated regularly
Name Product Interest rate and type Interest paid Invest Term Open via Incentive Table product description Apply link
United Trust Bank – Business 180 Day Notice Base Rate Tracker Account
United Trust Bank – Business 180 Day Notice Base Rate Tracker Account
5.25% AER variable
Yearly
£5,000 - £1,000,000
180 days notice
Open via: website, post
Go to site
View details
United Trust Bank – Business 200 Day Notice Issue 2
United Trust Bank – Business 200 Day Notice Issue 2
5% AER variable
Yearly
£5,000 - £1,000,000
200 days notice
Open via: website, post
Go to site
View details
United Trust Bank – Charity 200 Day
United Trust Bank – Charity 200 Day
5% AER variable
Yearly
£5,000 - £1,000,000
200 days notice
Open via: website, post
Go to site
View details
Aldermore – 1 Year Fixed Rate Savings Account
Aldermore – 1 Year Fixed Rate Savings Account
4.35% AER fixed
Monthly
£1,000 - £1,000,000
1 year
Open via: website
Go to site
View details
Aldermore – 1 Year Fixed Rate Savings Account
Aldermore – 1 Year Fixed Rate Savings Account
4.35% AER fixed
On maturity
£1,000 - £1,000,000
1 year
Open via: website
Go to site
View details
United Trust Bank – Business 100 Day Notice Issue 3
United Trust Bank – Business 100 Day Notice Issue 3
4.3% AER variable
Yearly
£5,000 - £1,000,000
100 days notice
Open via: website, post
Go to site
View details
United Trust Bank – Charity 100 Day Issue 1
United Trust Bank – Charity 100 Day Issue 1
4.3% AER variable
Yearly
£5,000 - £1,000,000
100 days notice
Open via: website, post
Go to site
View details
United Trust Bank – Business 6 Month Bond
United Trust Bank – Business 6 Month Bond
4.04% AER fixed
On maturity
£5,000 - £1,000,000
182 days
Open via: website, post
Go to site
View details
United Trust Bank – Charity 6 Month Bond
United Trust Bank – Charity 6 Month Bond
4.04% AER fixed
On maturity
£5,000 - £1,000,000
182 days
Open via: post
Go to site
View details
United Trust Bank – Charity 3 Month Bond
United Trust Bank – Charity 3 Month Bond
4.01% AER fixed
On maturity
£5,000 - £1,000,000
91 days
Open via: post
Go to site
View details
United Trust Bank – Business 3 Month Bond
United Trust Bank – Business 3 Month Bond
4.01% AER fixed
On maturity
£5,000 - £1,000,000
91 days
Open via: website, post
Go to site
View details
United Trust Bank – Business 40 Day Notice Issue 1
United Trust Bank – Business 40 Day Notice Issue 1
3.75% AER variable
Yearly
£5,000 - £1,000,000
40 days notice
Open via: website, post
Go to site
View details
United Trust Bank – Charity 40 Day Issue 1
United Trust Bank – Charity 40 Day Issue 1
3.75% AER variable
Yearly
£5,000 - £1,000,000
40 days notice
Open via: website, post
Go to site
View details
Aldermore – Easy Access Account Issue 8
Aldermore – Easy Access Account Issue 8
3.25% AER variable
Anniversary of account opening
£1,000 - £1,000,000
Instant access
Open via: website
Go to site
View details
Aldermore – Easy Access Account Issue 8
Aldermore – Easy Access Account Issue 8
3.25% AER variable
Monthly
£1,000 - £1,000,000
Instant access
Open via: website
Go to site
View details
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Why should I use a business savings account?

Business savings accounts tend to offer much better interest rates than business current accounts. So if your business has some surplus funds, it could make sense to move them into a business savings account, where your money can generate a better return.

Outside of the interest rate benefits, it’s also a prudent idea to have some savings set aside anyway, in case your business is hit by an unexpected situation, such as a downturn in trading or the need to make emergency repairs to your equipment.

Can I use a personal savings account instead?

No, not if it involves business finances. If you want to save a chunk of your business revenue then you’ll need to do it in a business savings account. It’s a similar situation to being legally required to have a business current account if you’re using banking services as a limited company, so that your personal and commercial funds are kept separate.

The only possible exception to this is if you operate as a sole trader or a freelancer. If your banking provider allows it, you could already be using your personal current account to make and receive business payments on a small scale. So you could in theory use a personal savings account to set aside and grow some of your earnings. (But as a sole trader, you can open a business savings account if you’d like to.)

What types of business savings accounts are available?

Similar to personal savings accounts, there are a couple of different options when choosing which business savings account to open. These include:

  • Easy access. These accounts tend to offer the least competitive interest rates in exchange for being able to instantly access funds if you need to withdraw them.
  • Notice accounts. You’ll have limited access to this account and will need to provide a set amount of notice (potentially a couple of months) if you need to make a withdrawal.
  • Fixed term. This type of account usually offers the best interest rate but you’ll need to keep your funds locked in for the duration of the fixed term.

How to choose a business savings account

You’ll need to do your research before selecting a business savings account, so here are some pointers to consider:

  • Access. Do you need to have instant access to your savings or are you happy to leave them untouched in an account for a long period of time? This will influence whether you go for an easy access, notice or fixed term account.
  • Interest rate. Obviously an important factor if you’re looking for a return on your savings. Check out which provider is offering the best rates – but remember the type of account you choose (e.g. easy access vs fixed term) will also influence how competitive the rate is.
  • Bonuses. Some accounts will have introductory offers when opening a new account, or bonuses for leaving your money in the account for an extended period of time. Remember, you might have to keep an eye on when bonus offers end and switch to a better account.
  • Minimum balance. There’s usually a minimum balance required to open and then maintain an account, which you are not allowed to fall below. Make sure you’re confident you can meet this savings threshold.
  • Your type of business. Although business savings accounts in general are available to all types of businesses, there might be specific account products on offer for sole traders, limited companies or certain sectors, such as charities.

Are business savings accounts covered by the FSCS?

The Financial Services Compensation Scheme (FSCS) protects deposits of up to £85,000 that you have with any licensed banking provider. So if your business account is with a licensed UK bank, then it will be covered by the FSCS.

Tax on business savings accounts

There will be tax payable on the interest earned by money in your business savings account, as this interest is usually paid gross (with no tax deducted) by your banking provider.

If you’re a sole trader the interest will form part of your income, and that will be subject to your personal tax allowance, which is used when calculating your annual self-assessment tax return.

Limited companies pay corporation tax, so any business savings interest will need to be included for tax purposes in your profit calculations.

Overview of our business savings comparison

Rates up to 5.7% AER
Number of accounts 429
Minimum investment £1
Maximum investment £50,000,000
Fixed bond terms 1 month - 7 years
Opening options Branch, website, mobile app, post, telephone

Which are the best business savings accounts at the moment?

Our best business savings accounts are the highest rates available for all the savings accounts that accept businesses. To get the latest rates, we use Moneyfacts data, which covers nearly the full market of savings products and is checked and updated daily. We don’t include accounts from private banks.

All the business savings accounts in our list have savings protection – for most, this is the Financial Services Compensation Scheme (FSCS). The other saving protection scheme is the Gibraltar Deposit Guarantee Scheme.

  • Union Bank of India (UK) Ltd – Fixed Rate Deposit - 5.7%
  • Metro Bank – Business Fixed Term Deposit Account - 5.52%
  • Metro Bank – Community Fixed Term Deposit Account - 5.52%
  • Reliance Bank – 1 Year Fixed Term Deposit - 5.5%
  • Close Brothers Savings – Fixed Term Deposit - 5.3%

Pros and cons of business savings accounts

Pros

  • If you’re a limited company you’ll need to open one if you want to save some of your business revenue into a bank account.
  • You can get a return on your money with better interest rates than a business current account.
  • There’s a range of accounts to choose from varying from easy access to fixed term.
  • You can set money aside for any unexpected event affecting your business.

Cons

  • You’ll need to pay tax on any interest.
  • If you choose a fixed term account but unexpectedly have to withdraw the money then you’ll face a penalty fee.

Bottom line

If your business is in the fortunate position to have some surplus funds that can be held in reserve, it may be a good idea to place it in a business savings account. This is because these savings accounts tend to offer better interest rates than business current accounts.

Placing this cash in a business savings account can be a great place to allow your firm’s money to grow while being kept for any unforeseen costs.

If you’re confident that your firm won’t need the money in the near future, you may benefit from a placing the cash in a fixed-term notice account. These accounts offer a higher rate of interest, but you won’t be able to touch that money without incurring penalties during the fixed term.

Finally, the key thing to bear in mind with using a business savings account is that your business will most likely need to pay tax on any interest earned.

Frequently asked questions

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.

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