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- Best business savings accounts | March 2025 interest rates
Compare business savings accounts for your small business
How to compare business savings accounts
Decide why you need a savings account
Compare account features
Look at the overall value
Business savings account deals
Tide Instant Saver
More Information
| Gross rate | Gross rate | AER rate | AER rate | |
|---|---|---|---|---|
| Excluding bonus | Including bonus | Excluding bonus | Including bonus | |
| £1 | 3% | 3.75% | 3.04% | 3.81% |
| Minimum Initial Deposit | £0 |
| Minimum Age | 18 years |
Allica Bank Instant Access Savings
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| 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 |
Virgin Money Online 120 Day Notice Account
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| 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 |
Virgin Money Business Access Savings Account
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| 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 |
Hampshire Trust Bank - Easy Access SME Saver
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| 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 |
Allica Bank 180 Day Notice Account
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| 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 |
Allica Bank 1 Year Fixed Rate Account
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| 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 |
Allica Bank 95 Day Notice Account
More Information
| 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 |
Allica Bank 6 Month Fixed Rate Account
More Information
| 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 |
What is a business savings account?
A business savings account works in a similar way to a personal savings account, as it earns interest on any money that you don’t need to use right away.
There’s also the opportunity to earn more interest than a standard business bank account, so it’s a good idea to keep your savings separate from the money in your current account.
This helps to manage your business’ finances more effectively by making most of your money and prepares for any unexpected expenses.
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?
What type of business savings account should I get?
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 current accounts
A business current account helps keep your finances separate and organised.
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.
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