Business savings

Discover business savings account providers

Running a business isn’t easy, especially if you have to manage staff, clients and cash flow. A good current account can help your business operate more efficiently. So, too, can a business savings account.

These are the best saving accounts available to open through MoneySuperMarket. We can also show you business current accounts.

Fixed rate business savings accounts - Ordered by rate (AER)

VIRGIN MONEY VIRGIN MONEY

2 Year Business Fixed Rate Savings Account

Interest rate (AER)

Great for
  • Knowing what return your business will get with a fixed rate of interest for a set amount of time - perfect for lump sums.
  • Being able to choose between monthly or annual interest.
  • Businesses who would like access to Virgin Money benefits, including Lounges.
But be aware that
  • This a strictly limited issue and could be withdrawn at anytime
  • The maturity date of this product is 20 May 2020, and withdrawals are not allowed within the fixed rate period.
  • Eligibility criteria apply, please see Virgin Money's Business Savings Account Guide for details.
VIRGIN MONEY VIRGIN MONEY

1 Year Business Fixed Rate Savings Account

Interest rate (AER)

Great for
  • Knowing what return your business will get with a fixed rate of interest for a set amount of time - perfect for lump sums.
  • Being able to choose between monthly or annual interest.
  • Businesses who would like access to Virgin Money benefits, including Lounges.
But be aware that
  • This a strictly limited issue and could be withdrawn at anytime
  • The maturity date of this product is 20 May 2019, and withdrawals are not allowed within the fixed rate period.
  • Eligibility criteria apply, please see Virgin Money's Business Savings Account Guide for details.

Interest rate (AER)

Great for
  • Interest is paid on maturity
  • Businesses with less than 250 employees and a turnover or assets of up to £45 million. Also available for charities and other sectors such as education
But be aware that
  • One off deposit, fixed for one year. Eligibility criteria apply
  • If you have more than 250 employees and a turnover or assets of less than £100 million, Nationwide's Corporate Saver Accounts could be perfect for you
  • Accounts operated by post, fax or a signed PDF instruction attached to an email

 

Easy access business savings accounts - Ordered by rate (AER)

Interest rate (AER)

Great for
  • Businesses looking for a competitive interest rate and easy access to their savings.
  • Businesses who want to manage their account online.
  • Businesses who would like access to Virgin Money benefits, including its Stores and Lounges.
But be aware that
  • Withdrawals can be made to your nominated account only.
  • Eligibility criteria apply, please see Virgin Money's Business Access Guide for details.
  • This is a variable rate account, where rates can increase or decrease at any time.

How our site works

We want to show you as many business savings accounts as possible, so you can choose the right one for your business. We can’t promise to show you accounts from every single provider, because some don’t want to be included on comparison websites. We list the accounts according to their interest rate, from the highest to the lowest. You can find out more about how we work here.

What are business savings accounts?

A business savings account is similar to an ordinary savings account – except it is designed specifically for business use.

If you have a business current account or deposit account and have built up a sizeable balance, you should look to move that money into a business savings account, as you are likely to be earning next to nothing in your current account. By contrast, you can make your money work harder in a business savings account.

That said, if you are looking to move money out of a business savings account, you need to be aware that while some allow instant access to your money, others may require you to give notice before withdrawing funds.

What types of business savings accounts are available?

Business savings accounts are offered by most banks and building societies, so it’s worth looking around to what’s on offer.

If you think you’re going to need to get your hands on any surplus cash in a hurry, you’re best off opting for an easy access account – as you can get your money right away.

With this type of business savings account, the minimum balance is usually low, and generally speaking, you will be able to make as many deposits and withdrawals as you wish, without incurring a penalty.

On the downside, an easy access business account is unlikely to pay the most competitive rates; this is the price you pay for the flexibility of having access to your cash.

If you can cope with a little less flexibility, you may find there are higher rates up for grabs on a notice account. With one of these accounts, the notice period will vary, from 30 days to as long as 120 days.

While this may not be as appealing as an easy access account, this type of account can suit those who want to put money aside to pay regular bills – or even a tax bill.

The key to making a notice account work for you is being organised and planning ahead so that you can give the notice required before making a withdrawal, so as not to have to pay a penalty.

For those who can afford to lock their money away for a set period, there is a third option – a fixed-term bond.

With a fixed-term bond a rate is paid over a set period of time – and guaranteed not to change during the fixed term. The term is usually between one and three years during which time no withdrawals are permitted.

While the rates can be preferential on this type of account, they are only suitable if you are sure you will not need to access your money. They also only suit those with a lump sum as you can only usually make one deposit at the time the account is opened.

What are the advantages of business savings accounts?

With a business savings account, you will earn a higher rate of interest on your money than you would if you left it sitting in a business current account.

Since April 2016, interest on business savings accounts has been paid gross, rather than with tax at 20% automatically deducted, as was the case previously. It is down to you to pay any tax you owe to HMRC.

But when choosing a business account, you need to be aware that some are based offshore, which means interest is also paid gross, before tax is deducted. Remember that this does not mean either UK or offshore business accounts are tax free.

With a business savings account, you also need to scour the small print carefully, as some will come with strings attached, such as bonus rate which drops away after a certain period. While it can be useful to have the initial rate boosted by a bonus, you need to note down when it ends so you remember to review your account again at this time.

You also need to keep an eye out for restrictions on withdrawals, as if you fail to stay within the permitted number, you could find you are penalised.

In addition, you might also have to maintain a certain balance in the account to qualify of the headline rate; fail to do so, and you may lose interest.

How safe is a business savings account?

Given the ongoing economic uncertainty, you may well be concerned about the safety of your money.

The good news is, provided your bank or building society is regulated by the Financial Conduct Authority or the Prudential Regulation Authority, you are covered under the Financial Services Compensation Scheme.

While this was set up to help individual customers, the protection also extends to small business as well and, in certain circumstances, larger businesses too.

Where the scheme applies, it safeguards the first £85,000 an eligible business has held under a single UK banking licence.

For more information, and to check if the institution you’re planning to bank with is part of the scheme, visit www.fscs.org.uk.

To avoid any panic, the key is to spread your cash around, to avoid having more than £85,000 with any one bank.

Further, when protecting savings, you need to be aware that FSCS coverage is per institution registered with the FSA, and that some institutions share a registration. Once again, the key is to spread money between banks and building societies to ensure it’s protected.

Why should you use MoneySupermarket.com to compare business savings accounts?

As there are a wide range of business savings accounts available with different rates and features, it’s important to do your research before making a choice.

The best way to do this is by logging onto a free and independent price comparison service such as MoneySupermarket where you can compare accounts on a like-for-life basis quickly and easily, helping you to make the right decision on the account that best suits your needs. 

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