Saving is always smart. For sole traders, startups, and established businesses, it’s a good idea to store extra capital in a place where it can earn as much interest as possible. There are lots of options out there, including instant access, notice accounts, and fixed terms. These are some of the best savings accounts available to businesses.
- Earn 3.25% – 4.35% AER.
- Offers a choice of easy access or fixed-term accounts.
- Easy access accounts with flexible access.
- Fixed-terms of 6 months or 1 year.
- Minimum deposit of £1,000.
- Maximum balance of £1,000,000.
- Real-time interest rate information.
- Suitable for a variety of businesses including sole traders and small businesses.
- Rated ‘Excellent’ by Business Moneyfacts.
- Average independent review score of 4.7 out of 5.
Companies are ranked in no particular order.
|Bank||Minimum Interest Rate (AER)||Maximum Interest Rate (AER)||Minimum term|
|Aldermore||3.25%||4.35%||Instant access available|
|Virgin Money||1.00%||4.55%||Instant access available|
|HSBC||1.80%||1.89%||Instant access available|
|Wise||4.68%||4.68%||Instant access available|
|Starling Bank||2.50%||2.50%||12 Month Fixed Rate|
|Barclays||1.00%||1.61%||Instant access available|
|NatWest||1.36%||4.00%||Instant access available|
|Lloyds||0.90%||3.40%||Instant access available|
|Metro Bank||1.10%||3.71%||Instant access available|
|Bank of Scotland||0.90%||3.41%||Instant access available|
|TSB||0.65%||0.90%||Instant access available|
|Santander||0.40%||1.40%||Instant access available|
|RBS (Royal Bank of Scotland)||1.36%||4.00%||Instant access available|
|Ulster Bank||1.36%||1.81%||Instant access available|
|Co-operative Bank||1.53%||2.42%||Instant access available|
|Allied Irish Bank||1.75%||4.00%||Demand Deposit|
|ICICI Bank UK||2.60%||4.75%||Instant access available|
|Nationwide||1.46%||1.50%||Instant access available|
|State Bank of India (UK)||0.00%||4.25%||Instant access available|
|United Trust Bank||3.50%||5.00%||40 Day Notice|
|Charity Bank||2.28%||4.21%||Instant access available|
|Kent Reliance||3.00%||3.00%||Instant access available|
|Cumberland Building Society||2.40%||2.60%||Instant access available|
|Redwood Bank||2.85%||4.85%||35 days notice minimum|
|Shawbrook Bank||0.90%||4.90%||Instant access available|
|Cambridge Building Society||1.95%||3.50%||Instant access available|
|OakNorth||1.00%||2.00%||Instant access available|
|Carter Allen Private Bank||2.85%||4.45%||35 days notice minimum|
|Saffron Building Society||1.20%||4.70%||Instant access available|
|Cambridge & Counties Bank||4.05%||5.00%||95 days notice|
|Recognise Bank||2.86%||4.50%||Instant access available|
|Allica Bank||3.50%||3.50%||24 Month Fixed Rate|
* Note the interest rates above come from each company’s website and are subject to change at short notice. Therefore, you’ll need to visit them directly to the see their most up-to-date rates. Also be aware that the minimum interest rate is normally for their basic instant access accounts whereas the maximum rate will be for their fixed term accounts (sometimes up to 5 years).
1. Virgin Money
- Earn 1.00%-4.55% AER.
- Offers a wide of business savings accounts.
- Choice of 2 easy access accounts that you can deposit and withdraw money when needed.
- Choice of notice accounts that you can top-up at anytime.
- Choice of fixed-rate for 3 months to 2 year account available.
- Notice periods of 30, 65, 95 and 120 days
- Limited online management.
- £1 minimum deposit.
- Maximum balance of £2,000,000 or £25,000,000 depending on the account.
- Can apply online if you have an business current account.
- Interest rates start at 1.80% AER
- Offers a choice of flexible accounts.
- Instant access with no access limits.
- No charges for transfers but cash and cheques transaction fees may apply.
- Call Accounts, Notice Accounts and Fixed Accounts are available.
- Minimum investment of £5,000 and no maximum investment.
- Option to benefit from UK money market interest rates.
- Client deposit account also available.
- Access your account via the internet, telephone and branches.
- Doesn’t require you to have a HSBC current account.
- Currently offering 4.68% on GBP for Instant access accounts.
- Offering 5.11% on USD deposits
- Offering 3.64% on EUR deposits
- No hidden fees of monthly subscriptions
- Costs £45 to open an account
- 0.5% Cashback available to some customers
- Can hold up to 50 currencies (interest only paid on GBP, USD & EUR)
- Used by 300,000+ businesses each quarter
- Authorised by the FCA
- Connects to Xero, QuickBooks, & FreeAgent
- Rated 4.4 out of 5 on Trustpilot
4. Starling Bank
- Earn a fixed 2.50% AER
- Only offer a 1 year fixed term account
- Deposit any amount from £2,000 to £1,000,000
- Open an account online or via their Ap
- You won’t be able to access your money for one year
- Covered up to £85,000 by the FSCS
- Subject to eligibility criteria
- You can’t top a Fixed Saver up once it’s been opened, but you can have multiple Fixed Savers at once
- Rated 4.3 out of 5 on Trustpilot
- Starling Bank also offers current accounts, business overdrafts and loans.
Website: Starling Bank Buisness Savings
- Earn up to 1.61% AER on instant access and client deposit.
- Offers a range of business savings accounts.
- Instant access account with no minimum balance.
- Client deposit account allows instant access to funds.
- Fixed-term accounts with no access for an agreed term.
- £100,000 minimum balance and maximum of £24,999,999 on fixed-term accounts.
- Interest rates on fixed-term accounts depend on term and will be discussed on application.
- Manage instant access and client deposit online, branch and over the phone.
- Manage fixed-term account in branch or over the phone.
- Apply online, in branch or over the phone.
- Earn 1.36%-4.00% AER on the easy access and notice accounts.
- Offers a wide choice of business savings accounts.
- Instant access with no minimum or maximum balance.
- Notice account with 35 days notice for access with no minimum or maximum balance.
- Fixed-term savings for tailored terms up to 12 months.
- Client accounts are also available.
- Fixed-term account minimum balance starts at £100,000 with no maximum.
- Fixed-term account interest rate is agreed when you open the account and paid at the end of term.
- Interest is applied daily on many of the accounts.
- You can apply online.
7. Lloyds Bank
- Instant access interest rates from 0.90% AER.
- Fixed Term Deposit up to 3.40% AER
- Offers a choice of instant access and fixed-term savings accounts.
- Instant access with a minimum balance of £1.
- Choice of fixed-term from overnight to 3 years.
- Notice accounts with either 32 or 95 days notice periods.
- Deposit £1 to £5,000,000.
- Unlimited withdrawals on instant access and notice accounts.
- View and manage your account online.
- Provides a savings strategy tool to help you to manage your savings.
- You can apply online if you have an account with them.
8. Metro Bank
- Earn from 1.10%-3.71% AER.
- Offers business and community deposit accounts.
- Instant access deposit accounts for businesses or community groups and charities.
- Fixed-term deposit accounts for 1 or 2 years from £5,000.
- Notice accounts with a choice of fixed periods.
- Periods of 35, 60 or 95 days’ notice available.
- No setup fees.
- Some charges for dealing with cheques.
- Client deposit accounts are also available.
- Business owners can open an account in-store.
9. Bank of Scotland
- Interest rates 0.90%-3.41% AER.
- Offers a choice of instant access and fixed-term savings.
- Instant access with flexible access with a minimum balance of £1.
- Notice accounts offering unlimited withdrawals.
- Fixed-term accounts are available.
- Save from £10,000 -£5,000,000
- Choice of 32 or 95 days notices on notice accounts.
- Choose your own fixed term for up to 2 years.
- Manage your accounts online.
- Existing customers can apply online.
- Earn from 0.65% to 0.90% AER, depending on your balance.
- Offers an instant access savings account only.
- Requires a balance of £5,000 or more to earn higher interest rates.
- Interest is calculated daily and applied monthly.
- Minimum opening balance of £1.
- Can withdraw instantly but daily limits apply.
- Manage the account online 24/7.
- Can also manage the account in branch and over the phone.
- Open and manage your account online or in-branch.
- You don’t have to be an existing customer.
- Earn from 0.40%-1.40% AER.
- Offers instant access and longer term savings accounts.
- Instant access savings for a simple easy access account.
- Business Reward Saver offers higher interest for not making withdraws but is still easy access.
- Fixed-rate bond accounts with a 1 year term.
- Also offers treasurer’s account.
- Minimum deposit of £1 on instant access and Business Reward Saver and £5,000 on fixed-rate.
- Maximum savings of £5,000,000.
- Manage your account online, over the phone, and in-branch.
- Preferential rates for customers who already have a 1|2|3 Business World current account.
12. RBS (Royal Bank of Scotland)
- Earn from 1.36%-4.00% AER.
- Offers a choice of instant access and longer term savings accounts.
- Instant access with no withdraw or balance restrictions.
- Notice account to lock away funds for 35 days.
- Fixed-term accounts with a choice of term.
- Terms of overnight to 12 months with rates reflecting the length.
- Interest rates for fixed-term accounts vary based on the term and available on application.
- Minimum balance of £100,000 on fixed-term account.
- No minimum balance for the instant access and notice accounts.
- No maximum balance on any of the accounts.
13. Ulster Bank
- Earn from 1.36% AER to 1.81% AER
- Offers a variety of business savings products.
- Instant access savings providing flexibility.
- Fixed-term accounts with a choice of term lengths.
- Foreign currency savings account also available.
- Terms from 1 week to 1 year.
- Most rates are not published but available on request.
- Interest is calculated daily and applied monthly on the instant access account.
- No withdrawal limits or balance restrictions on the instant access account.
- No maximum balance limits.
14. Co-operative Bank
- Earn 1.53%-2.42% AER.
- Offers a choice of instant access and notice accounts.
- Notice accounts offering either 35 or 95 days notice period.
- Instant access for straightforward savings.
- Allows a lump sum or regular deposits.
- Manage your instant access account online and over the phone.
- Manage the notice account over the phone only.
- No minimum or maximum balance needed.
- Download an application and post it to them or return to a branch.
- Must be a Co-operative business current account customer.
15. Allied Irish Bank
- Earn from 1.75% AER to 4.00% AER
- Offers fixed-term and demand deposit accounts.
- Fixed-term deposit with a minimum £5,000 deposit.
- Terms from 1 week to 5 years.
- Demand deposit accounts providing instant access.
- Interest is calculated daily and credited monthly or quarterly on demand deposit accounts.
- Interest on fixed-rate accounts is calculated daily but applied annually or at the end of the term.
- Interest rates on fixed-term accounts is agreed when you open the account.
- Existing customers can open an account with their Relationship Manager.
- New customers can open an account in branch.
- Earn 2.60% AER (variable) on business savings accounts
- Earn up to 4.75% AER on fixed term deposits
- Offers easy access and fixed deposit savings accounts.
- Easy access
- Fixed deposit accounts that are available in dollars or sterling.
- Terms of 6 months, 1, 2, 3 or 5 years.
- Save with just £1.
- Maximum savings of £5,000,000 (easy access) or £1,000,000/$1,000,000 (fixed deposit).
- Manage your account online (easy access only) and in branch.
- Must hold a business current account with them.
- Apply in branch only.
- Earn 1.46% to 1.50% AER on instant access accounts
- Earn interest either monthly or annually
- Easy access account with withdrawals and deposits at any time although minimum withdrawal is £500.
- Only currently offering Instant Access accounts
- £5,000 minimum opening balance.
- Save up to £10 million
- Manage your account by email, post or fax
- No fees or charges
- The interest rate is variable
18. State Bank of India (UK)
- Earn up to 4.25% AER.
- Offers Instant Access, Limited Access, 35 Day Notice, and Fixed Term Deposit Accounts
- Requires a minimum balance of £10,000.
- Interest will not be paid if balance falls below £10,000.
- Allowance of 25 free transactions per month.
- Available in pounds (GBP) and US dollars (USD).
- Interest is paid at the end of each month.
- Only offered to micro-enterprises with fewer than 10 employees.
- Manage everything in-branch, online, and in the post.
- Annual fee applies, unless your balance is £10,000 or more.
19. United Trust Bank
- Earn 3.50%-5.00% AER.
- Offers fixed-rate and notice accounts only.
- Terms of 40 days up to 3 years.
- Withdrawals during the term are not allowed.
- Minimum deposit of £5,000.
- Maximum deposit is £1,000,000.
- Interest is accrued and paid annually.
- 14-days notice will be give before the end of the term.
- At the end of the term you can re-invest or nominate an account for a transfer.
- You can open an account online or through the post.
20. Charity Bank
- Earn from 2.28% AER to 4.21% AER
- For their easy access account if your balance falls below £10,000 they’ll pay you just 0.10% AER
- Allows you to support UK-based charities and community enterprises while you save.
- Offers easy access, notice accounts and fixed rate accounts
- No withdrawals during the term.
- Also offers accounts for charities, clubs and credit unions
- £1,000 minimum deposit.
- Maximum deposit of £500,000.
- Manage your account by post, email, and phone.
- At the end of term you can re-invest the funds or nominate an account to transfer it to.
21. Kent Reliance
- Earn 3.00% AER.
- Offers easy access savings account only.
- £1,000 minimum deposit but minimum operating balance is £1.
- Maximum deposit £1,000,000.
- Interest is paid either monthly or annually.
- Manage your account easily online.
- Access your savings whenever needed.
- Branches only in the South East of England.
- Open an account online in 10 minutes.
- You must have a maximum of 3 directors.
22. Cumberland Building Society
- Earn 2.40-2.60% AER.
- Offers a range of business savings accounts.
- Instant Access account with a minimum £100 balance.
- eSavings account that is an instant access account with a £1 minimum balance.
- Notice account with a minimum balance of £10,000.
- Maximum account balance of £1,000,000.
- Give 40 days’ notice on the notice account.
- Secure a higher interest rate if you’re an internet banking customer.
- Accounts can be opened in branch, online or over the phone.
- You must live in their operating area to be eligible.
23. Redwood Bank
- Earn 2.85%-4.85% AER.
- Offers longer term savings options.
- Choice of notice accounts.
- Fixed-rate account for 1-year.
- Access your funds with 35 or 95 days’ notice on notice accounts.
- Interest can be paid monthly or annually.
- £10,000 minimum deposit.
- Maximum deposit of £1,000,000.
- Awarded Best Business Fixed Rate Bond Provider 2019 and 2020.
- Apply for an account online in 15 minutes.
24. Shawbrook Bank
- Earn 0.90%-4.90% AER.
- Offers a range of business savings accounts.
- Easy access accounts with flexible saving facilities.
- Notice accounts with 45 and 100 days notice.
- Fixed-rate accounts for 1 or 2 years.
- £1,000 minimum balance.
- Maximum balance of £2,000,000.
- Lock away your funds for higher rates.
- Suitable for sole traders, partnerships and limited companies.
- Not available to charities or trusts.
25. Cambridge Building Society
- Earn from 1.95% AER to 3.50% AER
- Offers easy access accounts, Notice Accounts and 1 year fixed term savings bonds
- Withdraw from easy access account up to twice a month.
- £1,000 minimum investment.
- Maximum balance of £2,500,000.
- Manage your account in branch or by post.
- View your account in their app.
- Interest is calculated daily and paid annually at the end of the year.
- Open an account in branch, over the phone or through the post.
- Available to sole traders, partnerships, limited companies, charities, clubs and housing associations.
- Earn 1.00%-2.00% AER.
- Offers a wide variety of business savings accounts.
- Easy access account with next day access.
- A choice of terms on notice accounts.
- Fixed-term accounts of 6 or 12 months.
- Terms of 35, 60, 95 and 120 days notice.
- £10,000 minimum balance.
- Maximum balance of £1,000,000.
- Manage your account online.
- Average Feefo rating of 4.5/5.
27. Cater Allen Private Bank
- Earn 2.85% to 4.45% AER.
- Offers a single savings account.
- Notice account with 30 days notice.
- Unlimited withdrawals allowed.
- £5,000 minimum deposit.
- Interest is paid on balances over £5,000.
- Make one withdrawal of up to £2,500 without notice each calendar year.
- Manage your account online, over the phone, and through the post.
- Suitable for sole traders, partnerships, limited companies, charities, clubs and societies.
- Part of the Santander Group.
28. Saffron Building Society
- Interest rates from 1.20% to 4.70% AER.
- Offers a choice of instant access and longer-term savings options.
- eSaver account with easy access and a minimum deposit of £10,000.
- An instant saving account with a minimum opening deposit of £1.
- 1-year fixed savings account with a minimum deposit of £5,000.
- Sports and social clubs account with an opening deposit of £1.
- Minimum deposit levels vary per account.
- Interest is paid annually on most accounts.
- Branches in the South East of England only.
- Some accounts managed online, others in-branch and through the post.
29. Cambridge & Counties Bank
- Earn 4.05%-5.00% fixed AER
- Offers a choice of longer-term business savings account.
- Choice of fixed-rate business, trust and charity bond accounts.
- Terms of 95 days or 1, 2, 3 or 5 years on fixed-rate accounts.
- Minimum investment of £10,000.
- Maximum investment of 5,000,000 or £3,000,000 on notice account.
- No withdrawals are allowed until the account matures or the notice period is up.
- Open to sole traders, limited companies, charities, and clubs.
- ‘Best Business Fixed Rate Bond Provider’ at the Savings Champion Awards 2020.
30. Recognise Bank
- Earn 2.86%-4.50% AER
- Offers a range of business savings accounts
- Easy access account
- 95-day notice account
- 1 year fixed rate account
- Minimum deposit of £1,000
- Maximum savings across all your accounts of £85,000
- Online account management
- Up to four named people can access the account
- Available to small to medium-sized businesses with less than 250 employees
Website: Recognise Bank Business Savings
31. Allica Bank
- Earn 3.50% AER on a 24-month fixed term savings account.
- Rate is guaranteed
- Can apply online
- FSCS protected up to £85k
- Can invest between £10,000 and £250,000 into the account
- Do not accept CHAPS payments
- Will get in contact 30 days before maturity to discuss next steps
- No fees to use the account
- Must be a UK based business
Website: Allica Bank Business Savings
- Earn 1.50% AER interest (variable) on your spare money
- Protected by the Financial Services Compensation Scheme (FSCS) up to £85,000 per person
- Schedule regular payments in to your savings pot for future needs
- Interest paid monthly
- No minimum deposit
- Must meet their eligibility criteria
- Must be an existing Monzo Business customer
- Sign up from your phone tor online
Website: Monzo Business Savings
Why open a business savings account?
Having savings can help your business prepare for future investments, secure the future, and make it easier to afford essentials.
Opening a dedicated savings account is a good idea because you can earn interest on your balance, meaning your business’ cash earns while it sits there doing nothing.
How do business savings accounts work?
The more you save and the longer the period, the more interest you’ll earn on your balance. Savings accounts are usually instant access, notice, or fixed term.
Instant access accounts are exactly what they sound like – you can withdraw and pay in at any time.
Notice accounts require you to give a period of notice before you withdraw, typically between 30 and 120 days.
Fixed-term accounts (sometimes also called Business Bonds) usually offer higher interest rates than easy access accounts, but you can’t withdraw any of the cash until the fixed period ends, these can be fixed for short periods through to 5 years but the longer the length the higher the interest rate normally is.
What are the differences between a business savings account and a business bank account?
A savings account is designed specifically for depositing money for later, whether you’ll need it in a couple of weeks or a couple of years. A business current account is for everyday business spending and earning.
Current accounts don’t usually earn interest on the balance. If they do, the rate will often be a lot lower than the rate you’d get with a savings account.
How to open a business savings account?
You can often apply for a business savings account online, but depending on the account and the provider, you might be restricted to applying over the phone or in person.
You’ll often need to deposit an amount to open your account, which can range from just £1 to several thousand pounds.
What interest rates do business savings accounts currently offer?
With the Bank of England continuing to raise interest rates, rates for savings accounts have also been increasing.
Business savings accounts in the UK currently offer interest rates of between 0.10% AER all the way up to 5.00% AER. These rates depend on whether you want an instant access account, a notice account or a fixed term account.
You’ll usually get a higher interest rate if you save for a fixed period, compared to instant access.
How long do you have to keep money in a business savings account?
How long you save for is entirely up to you. To earn the best return, it makes sense to save for at least a year.
If you want to keep your money accessible, an instant access or notice account is the best option. This means you can save your money for as long as you want.
Who offers the best business savings account?
The best business savings account for your business depends entirely on how much you want to save and when and how you want to access your money.
– Wise currently offers the highest interest rate on a business instant access account at 4.68% AER. However, they are not a bank and the money itself is invested via a Blackrock fund.
– In terms of banks, Aldermore has the highest instant access rate at 3.25% AER.
Here are the highest rates for other popular types of accounts:
– 95 Day Fixed Rate: Cambridge & Counties Bank at 3.75% AER
– 180 Day Notice Tracker Account: United Trust Bank at 5.00% AER
– 1 Year Fixed Rate: Cambridge & Counties Bank at 4.75% AER
– 2 Year Fixed Rate: Cambridge & Counties Bank at 4.75% AER
– 5 Year Fixed Rate: Cambridge & Counties Bank at 5.00% AER