A high-interest business saving account tends to offer a more competitive interest rate compared to standard business savings accounts. They are designed for businesses who want to maximise the growth of any money not needed right away.
Gross rate | Gross rate | AER rate | AER rate | |
---|---|---|---|---|
Excluding bonus | Including bonus | Excluding bonus | Including bonus | |
£1 | 3.8% | 3.8% | 3.86% | 3.86% |
£100,000 | 4% | 4% | 4.07% | 4.07% |
£500,000 | 0% | 0% | 0% | 0% |
Minimum Initial Deposit | £1 |
Minimum Age | 18 years |
Gross rate | Gross rate | AER rate | AER rate | |
---|---|---|---|---|
Excluding bonus | Including bonus | Excluding bonus | Including bonus | |
£50,000 | 3.83% | 4.58% | 3.58% | 4.58% |
Minimum Initial Deposit | £50,000 |
Minimum Age | 18 years |
Permanent UK Resident |
Gross rate | Gross rate | AER rate | AER rate | |
---|---|---|---|---|
Excluding bonus | Including bonus | Excluding bonus | Including bonus | |
£1 | 4% | 4% | 4.07% | 4.07% |
Minimum Initial Deposit | £1 |
Gross rate | Gross rate | AER rate | AER rate | |
---|---|---|---|---|
Excluding bonus | Including bonus | Excluding bonus | Including bonus | |
£1 | 3.49% | 3.49% | 3.55% | 3.55% |
Minimum Initial Deposit | £1 |
Minimum Age | 18 years |
Permanent UK Resident |
Gross rate | Gross rate | AER rate | AER rate | |
---|---|---|---|---|
Excluding bonus | Including bonus | Excluding bonus | Including bonus | |
£5,000 | 4.1% | 4.1% | 4.1% | 4.1% |
Minimum Initial Deposit | £5,000 |
Minimum Age | 18 years |
Permanent UK Resident |
Gross rate | Gross rate | AER rate | AER rate | |
---|---|---|---|---|
Excluding bonus | Including bonus | Excluding bonus | Including bonus | |
£20,000 | 4.4% | 4.4% | 4.4% | 4.4% |
Minimum Initial Deposit | £20,000 |
Minimum Age | 18 years |
Permanent UK Resident |
Gross rate | Gross rate | AER rate | AER rate | |
---|---|---|---|---|
Excluding bonus | Including bonus | Excluding bonus | Including bonus | |
£20,000 | 4.4% | 4.4% | 4.4% | 4.4% |
Minimum Initial Deposit | £20,000 |
Minimum Age | 18 years |
Permanent UK Resident |
Gross rate | Gross rate | AER rate | AER rate | |
---|---|---|---|---|
Excluding bonus | Including bonus | Excluding bonus | Including bonus | |
£20,000 | 4.21% | 4.21% | 4.25% | 4.25% |
Minimum Initial Deposit | £20,000 |
Minimum Age | 18 years |
Permanent UK Resident |
Gross rate | Gross rate | AER rate | AER rate | |
---|---|---|---|---|
Excluding bonus | Including bonus | Excluding bonus | Including bonus | |
£20,000 | 4.45% | 4.45% | 4.45% | 4.45% |
Minimum Initial Deposit | £20,000 |
Minimum Age | 18 years |
Permanent UK Resident |
A business savings account is designed to help your company grow its money, just like a personal savings account. It earns interest on funds you don’t need right away, making your money work harder in the background.
Compared to a standard business current account, a savings account can offer a higher interest rate, so it’s often a good idea to keep your savings separate from the money you use on a day-to-day basis. This not only helps you make the most of your surplus cash, but also gives you a buffer for any unexpected costs that might crop up.
It’s a simple way to stay on top of your finances and build a stronger, more resilient business.
A business savings account offers a range of benefits which can support the growth of your business.
You could earn more interest on your money in a savings account compared to a standard business current account. So, if your money is currently earning little to no interest, then it’s time to move it.
Keeping your business finances separate from your personal finances helps to maintain a clear line between the two - meaning you can be far more organised with accounting and financial management.
A savings account is far safer than keeping large amounts of cash on hand. Plus, most savings account providers are part of the Financial Services Compensation Scheme (FSCS), meaning should the bank or building society fail, the FSCS will compensate you up to £85,000. Keep in mind if you are a sole trader, the £85,000 cover is across all personal and business accounts across the institution and not separated out as it would be for a limited company or partnership.
A business savings account allows you to plan for future investments, emergencies and the expansion of your business via the savings pot.
A high-interest business saving account tends to offer a more competitive interest rate compared to standard business savings accounts. They are designed for businesses who want to maximise the growth of any money not needed right away.
An instant access business savings account allows you to access your money quickly and without restrictions. This flexibility makes it easier to manage business cash flow and respond quickly to any unexpected bills.
A notice business savings account requires you to give advance notice before you can access your cash. The notice needed will depend on the terms and conditions set by the account provider, usually ranging from seven days to a few months. In return, you tend to get higher interest rates than an instant access account.
A fixed-term business savings account will have a set period of time where you cannot withdraw your money. The period will vary and it’s agreed when you open the account. This type of savings account usually has some of the best interest rates on offer, but there’s little flexibility when it comes to accessing the money.
A high-interest business saving account tends to offer a more competitive interest rate compared to standard business savings accounts. They are designed for businesses who want to maximise the growth of any money not needed right away.
An instant access business savings account allows you to access your money quickly and without restrictions. This flexibility makes it easier to manage business cash flow and respond quickly to any unexpected bills.
A notice business savings account requires you to give advance notice before you can access your cash. The notice needed will depend on the terms and conditions set by the account provider, usually ranging from seven days to a few months. In return, you tend to get higher interest rates than an instant access account.
A fixed-term business savings account will have a set period of time where you cannot withdraw your money. The period will vary and it’s agreed when you open the account. This type of savings account usually has some of the best interest rates on offer, but there’s little flexibility when it comes to accessing the money.
The eligibility criteria will differ depending on the account provider, but in order to be eligible for most business savings accounts you'll need to be:
Over 18
A UK business
A UK resident
Able to provide contact details and address information
As some interest rate offers may be time-sensitive, it’s a good idea to have this information to hand and to check any additional eligibility requirements with the provider.
Once that’s ready - you can usually apply to open a business savings account online or in a branch. The provider will take you through a series of steps and request details about you and your business. Once that’s complete and you’ve provided the relevant documentation, the account should be ready to use.
Understanding your tax obligations is crucial when you’re running a business. Not only can it help you maintain cash flow without any unforeseen shocks, but it helps you keep your business finances organised.
Any interest made on your business savings is paid without any tax deducted. This means you’ll have to declare any interest earned as part of your annual tax return and then pay any tax you owe on it. There are a couple of additional distinctions, depending on whether you’re a sole trader or a limited company.
Sole traders pay tax on any money made above the standard tax-free personal allowance, which is currently £12,570 for the 2024/25 tax year. That means you can earn up to £12,570 — including any interest made on savings — before you have to pay any tax. If your income (excluding savings interest) is less than £17,570, then you can earn up to £5,000 in interest without being taxed on it – this is known as the starting rate for savings. Any tax you owe will be due to HMRC by 31 January, following the end of the tax year.
Limited companies pay corporation tax on any profits and that includes any interest made on savings. Typically you pay your tax bill to HMRC within nine months of the end of your accounting period.
A small business loan is a great way to take your business to the next level.
The right corporate credit card can provide a helpful line of credit for your business, help you manage spending and make accounting easier.
A business current account helps keep your finances separate and organised.
No, you shouldn’t use a personal savings account for business purposes. Mixing personal and business finances can lead to legal and tax complications, especially when it comes to accounting and reporting to HM Revenue & Customs (HMRC).
If you operate as a limited company, using a personal account can also weaken your limited liability protection. That legal separation between you and your business exists for a reason – combining finances could put that at risk.
On top of that, managing your business finances from a personal account can make it harder to track expenses, income, and overall profitability. It can also cause confusion when preparing financial statements or filing your tax return.
To keep things clean, compliant, and easier to manage, it’s best to open a dedicated business bank account.
Yes, you can have multiple business savings accounts. However, having too many accounts across different providers can cause confusion, so try to streamline this where possible.
It’s fairly straightforward to open a business savings account – you just need to follow a few simple steps. For example:
1. Choose the right business savings account for your needs
2. Check your eligibility for this account
3. Start application process online or in branch
4. Share relevant information with the provider about your business
5. Receive final documentation
6. Login to account and add funds
Yes, some business savings accounts are covered by the Financial Services Compensation Scheme (FSCS) – but not all. That’s why it’s essential to check whether your chosen provider offers FSCS protection before you apply.
Just like with personal savings, FSCS protection covers up to £85,000 per person, per financial institution. This means if the bank or building society fails, your eligible business savings are protected up to that limit.
Always look for confirmation of FSCS protection when comparing business savings accounts, especially if you're planning to deposit a large sum.
Business deposit accounts is another name for a business savings account. It helps businesses to separate their savings from daily spending and enables them to earn interest on surplus cash.
Business savings accounts are generally not tax-free. Interest earned on these accounts is typically subject to taxation, just like personal savings accounts.
Be sure to check specific tax regulations or consult with a tax advisor to understand your business’s tax obligations regarding savings.
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