Best Business Savings Accounts

If your company is in the fortunate situation of having surplus cash, rather than debt, choosing a competitive savings account to house that money will enable you to earn interest on it.

Business savings accounts work in a similar way to personal savings accounts and can be a great alternative to business bank accounts that won't usually pay any interest.

There are several options for businesses looking to save money. Some accounts allow you to access your savings whenever needed, while others will require you to lock funds away for a set time in return for a higher interest rate. Other business savings accounts might allow you to access your money if you give the required notice.

In this article, we will take a look at some of the best business savings account providers, and the features offered by them.

At a Glance, Pros and Cons

This section summarises the pros and cons of business savings accounts.

Pros

✔️ Higher interest rate than business current accounts — Money saved in a business savings account usually earns a higher rate of interest than money left in a company bank account.

✔️ Build an emergency fund — Having a savings account for surplus cash ensures you have money to fall back on if you have to pay for unexpected expenses or if you see a drop in sales.

✔️ Savings protection — Like personal savings accounts, many business savings accounts are protected by the Financial Services Compensation Scheme (FSCS) in the event the bank goes under.

✔️ Range of accounts to choose from — You can decide whether you want access to your money or whether you're happy to lock it away for a while and receive a higher rate of interest.

Cons

❌️ Minimum balance requirements — Some accounts might ask you to maintain a minimum balance which might be difficult if your income fluctuates.

❌️ Withdrawal restrictions — If you choose a fixed rate account, you might not be able to access your money for a year or so without paying a penalty.

❌️ Bonus rates — Some accounts might include a bonus which boosts the interest rate temporarily. Once it expires, the interest rate will drop.

Best Business Savings Accounts in 2023

Let's take a closer look at the best business savings accounts.

Learn more: What is a Business Savings Account?

1. Revolut Business — Smart business savings accounts (4.75% AER Variable)

Revolut's ‘Business funds' feature makes it simple to earn interest on your balance. The drawback is that only customers on the Revolut Business Enterprise plan can use this feature.

When you pay money into Business Savings, a ‘trustee’ handles the transfer of funds to the bank of your choice.

Visit Revolut Business

This is not like your regular Revolut Business account, which is an electronic money account. When you put money into Business Savings, it will be held in a segregated trust account and operated by a trustee on your behalf.

To open a Revolut Business savings account, you'll need to go to the Hub area in the mobile app. You can move funds between your savings and current accounts whenever you choose.

Next, open a separate bank account and label it something like “Taxes”; then, begin saving for your company's long-term goals. 

Note that Revolut does not offer FSCS protection.

2. Aldermore — Top-rated business savings account

There are three business savings accounts available from Aldermore — two fixed rate accounts and one easy access. You can use its rate comparison tool to see how these accounts stack up against the competition.

If you're happy to lock away your funds for a set time, Aldermore offers a 6-month fixed rate account and a 1-year fixed rate account. These can be opened with a minimum deposit of £1,000 and the interest rate is fixed.

Visit Aldermore

Alternatively, if you'd prefer to be able to access funds as needed, you can opt for the easy access account. Again, this has a minimum deposit requirement of £1,000. However, the interest rate is variable so could change at any point.

Accounts must be opened and managed online and to qualify, you must be a UK-based limited company, limited partnership, limited liability partnership, partnership or sole trader.

3. HSBC — Popular business savings account

HSBC (review) offers a number of business savings accounts.

Business Money Manager is an instant access account that requires no minimum deposit and has no withdrawal limits. Your money can be accessed over the phone, online or in branch.

Visit HSBC

HSBC Kinetic is another easy access account and can be managed via the HSBC Kinetic app. It works slightly differently to standard easy access accounts, as the interest rate ticks up slightly if you don't withdraw money for 30 days and then again after 60 days.

The Money Market Account is HSBC's fixed term deposit account, and you can choose from fixed periods between seven days and one year, or two, three, four and five years. The longer you leave your funds untouched, the higher the interest rate you'll earn. But you must have a minimum deposit of £5,000.

Finally, the Clients Deposit Account is designed for professionals who want to hold clients' money in a separate account. The higher the balance, the higher the interest rate.

4. Barclays — Long-established savings accounts for businesses who want options

Barclays (review) has many options for corporate savings accounts, including those with either flexible or fixed periods. Business Premium, Treasury Deposit, and Clients Premium are its respective accounts.

Barclays' Business Premium and Clients Premium accounts are both easy access accounts. Both can be managed online, in branch or over the phone. The key difference is that the Clients Premium account is for businesses like lawyers and accountants looking to manage money on their clients' behalf.

Visit Barclays

The Treasury Business account is suited to businesses that have a large deposit to invest — at least £100,000. The interest rate on this account is fixed and withdrawals and further deposits are not permitted during the term.

You can choose a term of between one month and one year. In return, you'll receive a higher rate of interest on your savings. The account can be managed by phone or in branch and accounts are available in GBP, EUR and USD.

5. Nationwide — Popular UK savings account for business

There are several different types of company savings accounts available from Nationwide (review). Choose from instant access, notice, and fixed term business savings accounts.

Nationwide splits its savings accounts into those for businesses with an annual turnover of less than £10 million (business savings accounts) and those for businesses and organisations with an annual turnover of £10 million or more (corporate savings accounts).

Visit Nationwide

Nationwide's business savings accounts include an instant access account, a 35-day notice account, a 95-day notice account and a one year fixed rate bond. These have a minimum deposit requirement of £5,000 and a maximum balance of £10 million.

Its corporate accounts include an instant access account as well as a 35-day, 95-day, and 125-day notice account. You can also choose fixed term accounts of three months, six months, 12 months and 18 months. These all require a minimum deposit of £100,000 and have a maximum balance of £25 million per account.

6. Monzo — Trusted business savings accounts provider for digital banking

Monzo Business account users can take advantage of all the perks associated with Monzo's business savings account.

Business bank account holders have access to an Instant Access Savings Pot and can schedule regular payments into the pot to help them save cash. Funds can be accessed as required.

If you have the Monzo Pro account, you'll also have access to a Tax Pot. This enables you to choose a percentage of your income to automatically transfer into your pot and ensure you can pay your tax bill.

Visit Monzo

Monzo makes it simple to set aside money for taxes and utility bills, get real-time updates on payments and savings, and transfer funds across accounts.

7. Metro Bank — Top free business savings accounts provider with competitive rates

Metro Bank offers a range of business savings accounts. The Business Instant Access Deposit Account gives you 24/7 online access to your money and a variable interest rate.

Alternatively, if you're happy to lock funds away, there are a number of fixed term accounts, ranging from three months to two years. You can start saving from £5,000.

Visit Metro Bank

If you're looking for something in the middle of an easy access and fixed term account, you could consider a notice account. With Metro, you can choose from notice periods of 35 or 95 days.

Metro Bank also offers an instant access and a fixed term account for community groups and charities. The fixed term account lasts for one year. Client deposit accounts are available too.

8. Santander — Well-reviewed savings accounts for business provider

Santander caters to businesses of all sizes by providing a range of savings accounts , including an instant access account, reward saver, fixed rate bonds and a treasurer's account.

The bank's Everyday Saver account is a straightforward account that can be opened with just £1 and gives you access to your funds as needed.

Visit Santander

The Business Reward Saver can also be opened with £1 and offers access to your funds, but will pay a higher rate of interest if you leave funds untouched.

For businesses with a lump sum to invest (of at least £10,000), Santander offers a one-year fixed rate bond paying a fixed rate of interest. No withdrawals are permitted during this time.

Finally, the Treasurer's Savings Account is for clubs, societies and other not-for-profit organisations and gives you access to your money through a cash card, or online or over the phone.

9. Bank of Ireland — Simple business savings accounts, plus currency options

There are several business savings accounts available from Bank of Ireland, an Irish financial institution.

The Business Instant Access Demand Deposit Account offers a variable interest rate, a minimum opening deposit of €1, and no maximum balance. Money can be accessed as required.

Alternatively, there are a number of fixed term accounts for those businesses with a lump sum to invest. Choose from terms of six, 12 and 24 months. You must pay in at least €5,000. Unlike many fixed rate accounts, you are permitted to access 10% of your balance during the term.

Visit Bank of Ireland

If you'd prefer a notice account, Bank of Ireland's Business Notice Deposit account has a 31-day notice period and a minimum balance of €5,000. Or, if you regularly send and receive payments in a different currency, you might prefer a Currency Deposit Account. Accounts are available in Sterling, US Dollars, Australian Dollars, Canadian Dollars, Swiss Franc and Polish Zloty.

10. TSB — Leading UK business savings accounts provider

TSB doesn't offer a huge variety of business savings accounts. But it does offer an instant access account and you won't need to have a TSB business current account to open it.

You only need £1 to open the account, but the rate increases if you have £5,000 or more saved up. The rate is variable so could change at any point.

Visit TSB

Funds can be withdrawn from this account as required.

Top business savings accounts — Buying Guide

Let's take a closer look at how business savings accounts work.

What is a business savings account?

Business savings accounts enable businesses to earn interest on their surplus cash.

Business savings accounts can be opened by a range of business types and sizes and you can usually choose from instant access, notice accounts and fixed rate accounts. Locking your money away in a fixed rate account will usually give you a greater return, but it won't be the right option for every business.

Reasons to open

As a company owner, why should I open a savings account?

If you have extra cash sitting around, it makes sense to put those funds in an account that's going to pay interest. Business current accounts don't usually pay interest or, if they do, the rate will be far lower than on a business savings account.

Putting money away in a savings account means your business has funds to fall back on in the event of an emergency, whether that's essential repairs to the business premises or the loss of a key employee.

How soon you need access to this cash is something to think about. If you choose to invest in a fixed rate bond with a fixed rate of interest, your return will usually be higher. But you won't usually be able to get access to this money in an emergency. An easy access business savings account might be preferable if you expect to make regular withdrawals.

A business notice account, on the other hand, could be a good compromise, since it offers higher interest rates than an instant access account, but you can still access your cash if you give the required notice.

Table of the types of business savings accounts

How to open a business savings account

Opening and managing a business savings account online is becoming increasingly common. This makes it a simple and hassle-free process, although some providers might still require you to open the account in branch or over the phone. Some might also require you to be an existing bank account customer.

You'll usually need to complete a short form, providing a few personal and business details to get your account up and running.

Which business savings account is right for you?

Before opening a new business savings account, it's important to consider the following:

#1 Flexibility vs higher return

In most cases, the interest rate on a savings account will be greater if the account's restrictions are tighter. Consider how often you will need access to your money before deciding whether an easy access, notice or fixed rate account is best for your business.

#2 Bonuses

Some easy access accounts come with temporary bonuses. These usually last a year and while it will boost the overall rate for that time, once the bonus has expired, the interest rate will drop and may no longer be competitive.

#3 Account management

You may be able to manage your account through a provider's website or app, post, in branch, telephone, or a combination of these methods. Think about what's most important to you before choosing an account.

#4 Minimum deposits & balances

A minimum opening deposit is often required, so make sure you check you can meet this. Fees might apply if your balance drops below this level at any point, or the account might be closed.

Business savings accounts: The Verdict

Companies can earn interest on their cash reserves by keeping them in a business savings account. With a wide range of accounts to choose from, there's bound to be one that meets your business needs. Just always check the small print to be sure your business qualifies.

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