BUSINESS SAVINGS ACCOUNTS

Compare savings accounts for your business

  • Compare from a range of trusted lenders

  • Earn more interest than with a business current account

  • Browse our different types of business savings accounts, from easy access to fixed term

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Why compare business savings accounts with MoneySuperMarket?

  • Takes just a few seconds

    You can see accounts from the UK’s leading providers at a glance, making it easy to compare

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    No hidden catches

    We’ll show you the key features of each account so you can be confident you make the right choice

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What is a business savings account?

A business savings account, like a personal savings account, lets you earn interest on the funds you deposit – however the money is only used by the business rather than individuals. 

Business savings accounts could be a good idea for business owners who are able to put aside a sizable amount to earn a competitive interest rate on the balance.

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How do business savings accounts work?

Business savings accounts work in the following way…

  • Choose a provider

    Compare options and select a suitable account with attractive interest rates and terms

  • Open the account online

    You’ll need to provide required documentation to open the account for your business

  • Deposit funds

    Keep track of your savings and consider reinvesting profits to maximise your returns

  • Monitor and manage

    Keep track of your savings and consider reinvesting profits to maximise your returns

What are the pros and cons of business savings accounts?

There are advantages and disadvantages to having a business savings account, such as:

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    Pros

    • You can earn more interest than through a business current account

    • Choice of different types of account such as easy access and fixed term are available

    • Interest on business savings accounts is paid gross, rather than tax being automatically deducted

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    Cons

    • Depending on the type of account, you may not have the flexibility to access the money quickly

    • Attractively high interest rates can fall sharply after the introductory period

    • Unlike personal savings accounts, there may be a limited number of business savings accounts available at any given time

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How to choose the best business savings account

There are a number of factors to consider to get the best business savings account for your company.

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    Decide on your business savings goal

    Business savings accounts pay different rates of interest but also have different levels of flexibility. Decide how you can maximise the return without tying up money the business might need at short notice

  • Consider the amount you’re saving

    Certain business savings accounts may have minimum deposits while others may only pay higher interest up to a certain balance. Establish how much you’ll be saving and check the account’s conditions before applying

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    Look for features and perks you’ll use

    Business savings accounts come with different features, whether they are perks for signing up or ease of managing the account online, through an app – or even in branch. Decide which are most important to you

What interest rate can I get on a business savings account?

Interest rates on business savings accounts change frequently, so it’s always worth comparing to see what is currently on offer before applying.

With the Bank of England base rate having risen in recent times, interest rates for savers are becoming more appealing and the longer you are prepared to lock your money away, the higher the returns should be. 

This means you can currently find rates of more than 3% for an easy access business savings account and over 4% for a fixed rate account.* 

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*Accurate as of August 2023

What are the different types of business savings accounts?

There are several business savings accounts to choose from, including:

  • Fixed term accounts

    Pay a fixed rate of interest for a set period. Fixed term accounts usually pay higher rates than regular savings accounts, but there may be a notice period in place for when you can withdraw funds

  • Instant access accounts

    Prioritises flexibility. Instant access accounts, as well as easy access accounts, don’t generally offer competitive business savings rates, but you’ll usually be able to make deposits and withdrawals without any restrictions

  • Fixed-term bonds

    The interest rate is guaranteed over the term of the bond, which is often between one and three years. Interest rates tend to be competitive, but you won’t be able to access your funds during that period

Compare business savings accounts with MoneySuperMarket

MoneySuperMarket can help you compare business savings accounts all in one place

  • Browse our providers

    View a list of all our business savings accounts and their key features depending on the type of account

  • Filter and sort

    Use our filters to focus on what’s most important to you, whether it’s interest rate, deposit amount or length of term

  • Click through to provider

    When you find the account you want, click straight to the provider to complete your application online today

More expert guidance on business finance

If a business savings account doesn’t deduct tax, you’ll need to declare it as part of your annual tax return.

Business savings accounts present their business account interest rates as gross. This means it shows the interest rate before tax is deducted.

The amount of tax you need to pay on the interest will depend on your business's tax rate.

Business savings accounts are usually covered by the Financial Services Compensation Scheme (FSCS) but this isn’t always the case, especially if you own a larger business. You’re usually covered by the FSCS if:

  • You’re a partnership

  • You own a limited company

  • You’re part of the unincorporated association

  • You earn a yearly turnover that’s less than £1 million

Whether interest rates on business savings accounts will be better than on regular savings accounts will depend what providers are offering at any given time.

Either type of account could pay a higher interest rate, but this may not be the only consideration before applying. You should also take note of other factors such as minimum and maximum deposits and any notice period for withdrawals. 

The time it takes to open a business savings account will vary depending on the provider, but the process can take anywhere from less than a day to a couple of weeks.

It will involve submitting necessary documentation, completing applications, and undergoing any required verification or compliance checks.

To open a business savings account in the UK, you generally need the following documents: 

  • Proof of business registration, such as a certificate of incorporation

  • Identification documents for the account signatories

  • Business address verification

  • Additional documents like business licenses or partnership agreements, depending on the bank's requirements

While businesses in the UK can have more than one savings account, there are pros and cons to consider.

It could help you allocate savings for different business goals, but it might also make more administrative work and mean you miss out on more attractive returns through splitting the savings between different accounts.

It may be possible to get a business savings account in the UK even if your business is based abroad, but you will have to meet the provider’s terms and conditions.

Account opening processes and requirements may vary, and you may need additional documentation, such as proof of business registration and identification for overseas directors.