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Revealed: the best business savings accounts

Business owner opening a savings account on their phone

Whether you’re planning a big purchase or just putting money to one side for a rainy day, opening a business savings account can help you to reach your goals.

Read our guide for more information on how business savings accounts work, plus a comparison of accounts from some leading providers.

What is a business savings account?

Much like personal savings, business savings allow you to separate your surplus cash and build up a useful pot of money.

By opening a savings account for your business, you can benefit from higher interest rates and the peace of mind that you’ve got some extra cash available if you need it.

Depending on the type of account you choose, you may be able to access your savings instantly. Alternatively, some accounts will give you fewer options to access your cash but you’ll benefit from the best business savings rates.

Most banks that provide business current accounts also offer savings options so it’s worth checking with your existing provider as well as shopping around for the best interest rates.

Read more: Which bank has the best business bank account?

Why should businesses open a savings account?

Saving regularly is a healthy habit that can contribute towards the growth of your business. Having a dedicated savings account for your business can encourage you to set goals, such as building up the money for:

  • hiring a new employee
  • upgrading software or equipment
  • expanding your premises
  • launching new products or services
  • improving your website or marketing

If you run a limited company, it’s a legal requirement to keep your business and personal finances separate. This means that if you’re saving any of the money made by your business, it’ll need to be in a separate business account.

Although separating business and personal finances isn’t a legal requirement for sole traders and freelancers, it’s highly recommended if you want to manage your money effectively.

Read more: What is a sinking fund? A small business guide

What are the different types of business savings account?

As mentioned above, there are several types of savings accounts that offer different levels of access to cash and interest rates.

Here are the three main types of savings accounts for businesses:

  1. Easy access – no restrictions on withdrawing cash, which means the interest rate will be lower than other savings accounts
  2. Notice – as the name suggests, you’ll need to give notice before removing funds from this type of account
  3. Fixed rate – you won’t be able to access your money for a set period, but will benefit from the best business savings rates

When choosing your savings account, it’s important to consider how often you’ll need to access the money and whether they’ll be expected withdrawals or on a more ad-hoc basis.

Easy access: ten of the best business savings accounts

Bank

Account name

Interest rate

Minimum deposit

Extra info

Virgin Money

Business Access Savings Account

1.41%

£1

No fees and charges

Barclays

Business Premium Account

Up to 1.56%

£1

Unlimited CHAPS payments

Shawbrook

Easy Access Business Account

2.26%

£1,000

Max balance of £85,000

Aldermore

Easy Access Account

2.30%

£1,000

Max balance of £1,000,000

Santander

Business Everyday Saver

0.7%

£1

No max balance

Lloyds Bank

Instant Access Account

0.75%

£1

Interest paid monthly

NatWest

Business Reserve

1.06%

£1

No max balance

Metro Bank

Business Instant Access Deposit Account

0.75%

£1

Interest paid monthly or annually

Nationwide

Business Instant Access Saver

0.35%

£5,000

Interest paid monthly or annually

Newcastle Building Society

Online Business Saver

2.30%

£1

Different options for limited companies and sole traders

*All account information in this article is correct as of May 2023, but subject to change

Notice: ten of the best business savings accounts

Bank

Account name

Interest rate

Minimum deposit

Withdrawal notice period

Virgin Money

95 Day Business Notice Account

2.78%

£100,000

95 days

Shawbrook

100 Day Business Notice

1%

£5,000

100 days

Bank of Scotland

32-day Notice Account

1.87%

£10,000

32 days

United Trust Bank

Business 200 Day Notice

3.75%

£5,000

200 days

Cambridge & Counties Bank

95 day business

3.45%

£10,000

95 days

Lloyds Bank

32 Day Notice Account

1.87%

£10,000

32 days

NatWest

Liquidity Manager

2.12%

No minimum deposit

95 days

Metro Bank

Business Notice Account

1.65%

No minimum deposit

35 days

The Co-operative Bank

95 Day Notice Account

1.96%

N/A

95 days

Newcastle Building Society

Business 60 Day Notice Saver

2.50%

£1

60 days

Fixed rate: ten of the best business savings accounts

Bank

Account name

Interest rate

Deposit/balance limits

Fixed term

Virgin Money

24 Month Business Term Deposit

4.10%

£2,000,000 (max balance)

2 years

Barclays

Fixed Term

Depends on chosen term

£24,999,999 (max balance)

Up to 1 year

Shawbrook

1 Year Fixed Rate Business Savings Bond

4.05%

£2,000,000 (max balance)

1 year

Aldermore

1 Year Fixed Rate Savings Account

3%

£1,000,000 (max balance)

1 year

Santander

Fixed Rate Business Bond

1%

£5,000,000 (max balance)

1 year

Lloyds Bank

Fixed Term Deposit

3.06%

£5,000,000 (max balance)

9 months

NatWest

Treasury Reserve

Agreed on opening of account

£100,000 (minimum deposit)

Up to 5 years

Metro Bank

Business Fixed Term Deposit Account

3.51%

£5,000 (minimum balance)

1-2 years

United Trust Bank

Business 15 Month Bond

4.16%

£5,000 (minimum balance)

15 months

Cambridge & Counties Bank

2 year fixed rate

4.15%

£10,000 (minimum balance)

2 years

Do challenger banks offer business savings accounts?

In recent years, a number of challenger banks have started to compete with more established high street banks.

Most challenger banks are online-only, with a focus on improving user experience.

When it comes to business savings accounts, Monzo offers its customers an instant access business savings account with an interest rate of 1.5 per cent.

Starling offers a fixed rate account, with an interest rate of 2.5 per cent on a one-year fixed term.

Meanwhile, Tide customers can open ‘sub-accounts’ within their existing business bank account to separate their surplus cash.

More small business finance guides

Business banking can be a complex topic and this article is intended as a guide only. Make sure you seek advice from a banking or finance expert if you’re not sure of anything.

Looking for self-employed insurance?

With Simply Business you can build a single self employed insurance policy combining the covers that are relevant to you. Whether it’s public liability insurance, professional indemnity or whatever else you need, we’ll run you a quick quote online, and let you decide if we’re a good fit.

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Conor Shilling

Conor Shilling is a professional writer with over 10 years’ experience across the property, small business, and insurance sectors. A trained journalist, Conor’s previous experience includes writing for several leading online property trade publications. Conor has worked at Simply Business as a Copywriter for three years, specialising in the buy-to-let market, landlords, and small business finance.

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