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, I'll go over the best business savings account providers, and the features offered by them.
| Provider | Score | Details |
|---|---|---|
| 1. Revolut Business | ★★★★★ | Learn more |
| 2. Aldermore | ★★★★★ | Learn more |
| 3. HSBC | ★★★★★ | Learn more |
| 4. Barclays | ★★★★★ | Learn more |
| 5. Nationwide | ★★★★★ | Learn more |
| 6. Monzo | ★★★★★ | Learn more |
| 7. Metro Bank | ★★★★★ | Learn more |
| 8. Santander | ★★★★★ | Learn more |
| 9. Bank of Ireland UK | ★★★★★ | Learn more |
| 10. TSB | ★★★★★ | Learn more |
At a Glance, Pros and Cons
This section summarises the pros and cons of business savings accounts.
| Pros | Cons |
|---|---|
| ✔️ 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. | ❌ Minimum balance requirements — Some accounts might ask you to maintain a minimum balance which might be difficult if your income fluctuates. |
| ✔️ 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. | ❌ 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. |
| ✔️ 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. | ❌ Bonus rates — Some accounts might include a bonus which boosts the interest rate temporarily. Once it expires, the interest rate will drop. |
| ✔️ 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. |
Best Business Savings Accounts in 2024
Company | Interest (AER) Variable | Min Deposit | Max Deposit | Access |
|---|---|---|---|---|
1. TSB | Up to 1.50% AER variable | £1 | £5m | App and Online |
2. Aldermore | Up to 4.51% AER variable | £1,000 | £10m | App and Online |
3. HSBC | Up to 2.02% AER variable | £1,000 | No maximum deposit | App and Online |
4. Barclays | Up to 1.96% AER variable | No minimum deposit | £50m | App and Online |
5. Nationwide | Up to 3.35% AER variable | £5,000 | £10m | App and Online |
6. Monzo | Up to 1.60% AER variable | No minimum deposit | £100,000 | App and Online |
7. Metro Bank | Up to 1.20% AER variable | No minimum deposit | No maximum deposit | App and Online |
8. Santander | Up to 1.05% AER variable | £1 | No maximum deposit | App and Online |
9. Bank of Ireland UK | Up to 1.70% AER variable | £1 | No maximum deposit | App and Online |
1. Revolut Business — Smart business savings accounts (Up to 3.51% AER Variable)
Revolut's ‘Business funds' feature makes it simple to earn interest on your balance. The drawback is that only customers on the paid plans can use this feature.
When you pay money into Business Savings, a ‘trustee’ handles the transfer of funds to the bank of your choice.
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.
Revolut Business offers FSCS protection up to £85,000.
Here you can find the savings details for the different account plans:
Product name | Revolut Business Basic Account | Revolut Business Grow Account | Revolut Business Scale Account | Revolut Business Enterprise Account |
AER Interest on Savings | N/A | Up to 2.25% AER/Gross (variable) on Savings. AER stands for Annual Equivalent Rate, which reflects the interest rate, plus all interest payments made throughout the year. Gross means the interest rate without tax deductions. | Up to 2.75% AER/Gross (variable) on Savings. AER stands for Annual Equivalent Rate, which reflects the interest rate, plus all interest payments made throughout the year. Gross means the interest rate without tax deductions. | Up to 3.51% AER/Gross (variable) on Savings. AER stands for Annual Equivalent Rate, which reflects the interest rate, plus all interest payments made throughout the year. Gross means the interest rate without tax deductions. |
The Savings are accessible 24/7. Add or withdraw money with zero restrictions, whenever you need to, instantly. And set controls for who else gets access, too.
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.
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 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 the branch.
HSBC Kinetic is another easy-access account and can be managed via the HSBC Kinetic app. It works slightly differently from 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 £1,000.
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.
Read More: HSBC Business Review
4. Barclays — Long-established savings accounts for businesses who want options
Barclays 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.
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.
Read More: Barclays Business Review
5. Nationwide — Popular UK savings account for business
There are several different types of company savings accounts available from Nationwide bank. 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).
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.
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.
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.
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 UK — Simple business savings accounts
There are two business savings accounts available from Bank of Ireland UK, an Irish financial institution.
The Instant Saver Plus Account offers a variable interest rate, a minimum opening deposit of £1, and no maximum balance. Money can be accessed as required. Interest is calculated daily on your closing balance and is paid annually.
Alternatively, there is the Call Account. You must pay in at least £10,000. The rate of interest applicable to your account will be agreed with you on the date that your account is opened. If you have already taken advantage of the bespoke rate offering, you will need to contact your Account Manager or Customer Service Team to confirm your interest rate.
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.
Funds can be withdrawn from this account as required.
Best 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.
Types of business savings accounts
| Type of business savings account | Interest Rate Structure | Account access |
| Fixed term account | Fixed for the term of the account | No withdrawals are allowed; early withdrawals may incur a penalty and/or result in the account being closed. |
| Notice accounts | Usually variable, so it could change at any time | You'll need to give a set number of days' notice to access funds. |
| Instant access accounts | Variable, so it could change at any time | Access funds as required. However, withdrawals may be subject to a maximum per day or per week. |
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.
