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.
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Compare business savings accounts for your small business
A business savings account can help your business earn interest on money that isn’t needed right away.
How to compare business savings accounts
Decide why you need a savings account
Consider your main motivation for opening a business savings account. Do you want to earn high interest on a lump sum or are you keen to start an emergency fund for unexpected expenses? These priorities will determine what type of savings account is right for your business.
Compare account features
Once you know why you need a savings account, you can start to compare the account features. Look at interest rates, fees and whether there are any access restrictions. Plus, don’t forget to find out how you’ll be able to access your savings - some banks only offer online banking and this might not be suitable for you.
Look at the overall value
Check whether there are any promotional offers or long-term benefits available. Plus, it’s important your money is safe - so always check to see if your provider is protected by FSCS. You can also read reviews of the provider to make sure current customers are happy with the service.
Business savings account deals
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Earn up to 4.48% AER (variable) on your savings.
Tide Instant Saver
Term
Instant access
Open with
£1
Interest rate
Up to4.48%AER variable
Save more, earn more—up to 4.48% AER (variable). Interest rates are tiered, with the top rate for balances over £1M. Each tiered rate applies to the portion within that range. New Tide members get these rates free for 6 months; after that, your Tide plan’s rates apply.
More Information
Rate Tiers
| 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 | 4.3% | 4.3% | 4.38% | 4.38% |
| £1,000,000 | 4.4% | 4.4% | 4.48% | 4.48% |
Eligibility
| Minimum Initial Deposit | £1 |
| Minimum Age | 18 years |
Earn up to 4.58% AER (variable)*, interest paid monthly
Allica Bank Instant Access Savings
Term
Instant access
Open with
£50,000
Interest rate
4.58%AER variable
*Rate includes standard rate of 3.58% AER (minimum balance applies) plus a 0.5% boost each month if you make 15 bank transfers out of the account in the previous month, and a 0.5% boost for six months if you complete a switch with CASS.
Eligibility criteria and T&Cs apply
More Information
Rate Tiers
| 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% |
Eligibility
| Minimum Initial Deposit | £50,000 |
| Minimum Age | 18 years |
| Permanent UK Resident |
No fees or charges. No maximum balance. You can't make withdrawals without notice
Virgin Money Online 120 Day Notice Account
Term
120days notice
Open with
£1
Interest rate
4.07%AER variable
You can't change your notice period. The rate is variable and is 0.50% Below Bank of England (BoE) base rate. Interest paid on this account will change by the end of the next working day after the BoE's base rate change. Virgin Money is a trading name of Clydesdale Bank PLC. Terms and eligibility criteria apply
More Information
Rate Tiers
| Gross rate | Gross rate | AER rate | AER rate | |
|---|---|---|---|---|
| Excluding bonus | Including bonus | Excluding bonus | Including bonus | |
| £1 | 4% | 4% | 4.07% | 4.07% |
Eligibility
| Minimum Initial Deposit | £1 |
Top up or access your savings instantly. No fees or charges
Virgin Money Business Access Savings Account
Term
Instant access
Open with
£1
Interest rate
3.55%AER variable
Save from £1 up to a maximum of £2 million with monthly interest. Rates are variable. Check the rate at point of application, as it may change. Terms and eligibility criteria apply
More Information
Rate Tiers
| 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% |
Eligibility
| Minimum Initial Deposit | £1 |
| Minimum Age | 18 years |
| Permanent UK Resident |
Covered by FSCS up to £85,000
Allica Bank 180 Day Notice Account
Term
180days notice
Open with
£20,000
Interest rate
4.45%AER variable
More Information
Rate Tiers
| 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% |
Eligibility
| Minimum Initial Deposit | £20,000 |
| Minimum Age | 18 years |
| Permanent UK Resident |
Covered by FSCS up to £85,000
Allica Bank 95 Day Notice Account
Term
95days notice
Open with
£20,000
Interest rate
4.40%AER variable
More Information
Rate Tiers
| 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% |
Eligibility
| Minimum Initial Deposit | £20,000 |
| Minimum Age | 18 years |
| Permanent UK Resident |
Covered by FSCS up to £85,000
Allica Bank 6 Month Fixed Rate Account
Term
6months
Open with
£20,000
Interest rate
4.25%AER fixed
More Information
Rate Tiers
| 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% |
Eligibility
| Minimum Initial Deposit | £20,000 |
| Minimum Age | 18 years |
| Permanent UK Resident |
Covered by FSCS up to £85,000
Allica Bank 1 Year Fixed Rate Account
Term
1year
Open with
£20,000
Interest rate
4.40%AER fixed
More Information
Rate Tiers
| 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% |
Eligibility
| Minimum Initial Deposit | £20,000 |
| Minimum Age | 18 years |
| Permanent UK Resident |
What is a business savings account?
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.
Why do you need a business savings account?
A business savings account offers a range of benefits which can support the growth of your business.
1. Higher interest
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.
2. Keeps your finances separate
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.
3. Peace of mind
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.
4. Supports future investments
A business savings account allows you to plan for future investments, emergencies and the expansion of your business via the savings pot.
What type of business savings account should I get?
High-interest business savings account
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.
Instant access business savings account
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.
Notice business savings account
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.
Fixed-term business savings 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.
What type of business savings account should I get?
High-interest business savings account
Instant access business savings account
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.
Notice business savings account
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.
Fixed-term business savings 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.
How to apply and eligibility criteria
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.
Paying tax on business savings accounts
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.
Business loans
A small business loan is a great way to take your business to the next level.
Business credit cards
The right corporate credit card can provide a helpful line of credit for your business, help you manage spending and make accounting easier.
Business current accounts
A business current account helps keep your finances separate and organised.
FAQs
Can I use a personal savings account for my business?
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.
Should a small business have a savings account?
A small business should have a savings account if they want to manage their finances more effectively. This could be building an emergency fund for unexpected expenses or taking the opportunity to earn interest on surplus funds.
Can I have multiple business savings accounts?
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.
How do I open a business savings account?
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
Are business savings accounts covered by the FSCS?
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.
What are business deposit accounts?
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.
Are business savings accounts tax-free?
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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