Choosing the right business savings account can help your business to earn interest and grow some extra cash. This guide shows you how to pick the best account and compare the top options currently available for UK businesses.
What is a business savings account?
A business savings account is a separate account where you can put business money you don’t need right away. It earns interest and is useful for storing funds that aren’t needed for daily expenses, taxes, or payroll.
Compare business savings account types
There are a few main types of business savings accounts, based on how easy it is to take money out and how long you plan to save:
Here’s a quick comparison of the three main types of business savings accounts:
Account type | Liquidity | Typical interest rate (2025) | Access conditions | Best for |
Easy Access | Instant withdrawal | ~4.3% AER (variable) | Withdraw any time without penalty | Buffer funds and flexibility |
Notice account | Access after notice | ~4.2-5% AER | Requires a notice period | Short term planning |
Fixed-term Deposit | Locked-in funds | ~4.3-4.6% AER (fixed) | No access until maturity | Long term surplus reserves |
Top business savings accounts in the UK (July 2025)
Here are some of the best business savings accounts currently available to UK businesses:
Provider | Account type | AER (%) | Min deposit | Access terms | FSCS Protection |
Hampshire Trust Bank variable rate account | Easy access | Up to 5.06% | £1 | Unlimited withdrawals | Yes |
Allica Bank | 180-day notice savings account | Up to 4.20% | £20,000 | 180 days' notice required | Yes |
Recognise Bank | 1-year fixed | Up to 4.00% | £1,000 | Locked until maturity | Yes |
Cynergy Bank | Business saver | Up to 3.50% | £1 | Withdraw anytime | Yes |
Tide Business Saver | Instant access | Up to 4.22% | £1 | Unlimited withdrawals | Yes |
United Trust Bank | Easy access tracker | Up to 4.05% | £5,000 | Unlimited withdrawals | Yes |
Redwood Bank | 2 Year business savings bond | Up to 2.30% | £10,000 | Locked until 2 year maturity | Yes |
Cambridge & Counties Bank | 1-Year Fixed | Up to 4.25% | £10,000 | Locked for 12 months | Yes |
Shawbrook Bank | 45 day notice account | Up to 3.76% | £5,000 | 45 days notice | Yes |
Note: rates are subject to change, always check live rates on provider websites.
What to look for in a business savings account
1. FSCS protection
When choosing a business savings account, check whether your money is protected under the Financial Services Compensation Scheme (FSCS). The FSCS is a UK government-backed deposit protection scheme. If your bank or savings provider fails (goes bankrupt, enters administration, etc.), the FSCS ensures your eligible deposits are reimbursed up to £85,000 per business, per authorised institution. This protection applies only to firms authorised by the Prudential Regulation Authority (PRA) and Financial Conduct Authority (FCA).
From 1 December 2025, the FSCS limit is set to increase to £110,000, reflecting inflation and improving depositor safety.
Why FSCS protection is important
Are all business savings accounts FSCS-Protected?
No, some accounts are not covered by the FSCS. Typical examples include:
These might offer higher returns, but they carry more risk. If they fail, you might lose your money or face delays getting it back.
Should you avoid non-FSCS accounts?
Not necessarily, it depends on your business’s risk appetite and cash management strategy. You might decide to:
How to check if a provider Is FSCS-Protected
You can confirm FSCS protection by:
Important to note: FSCS protection applies per bank licence, not per brand. If two brands share a licence (like HSBC and First Direct), your £85,000 limit is shared between them.
2. Access restrictions
Different accounts offer different levels of access. If you think you might need the money soon, go for easy access. If you can plan ahead, a notice or fixed-term account might pay more interest.
4. Interest type: Fixed vs variable
When choosing a business savings account, you’ll be offered either a fixed rate or a variable rate. When it comes to choosing, the question is: which one supports your financial strategy?
Fixed Interest: Predictable, But Inflexible
A fixed-rate business savings account gives you a guaranteed interest rate for a set period (e.g. 6 or 12 months). It’s a good choice if:
Variable Interest: flexible, but less predictable
A variable-rate account tracks the market (the Bank of England base rate)This means your interest rate can go up or down. However, note that each institution chooses when to change their rates and won’t be as high as the Bank of England base rate.
It can be a good option if:
However, variable accounts offer no guaranteed return, and in falling rate environments, your interest earnings could go down.
How to decide: Match savings types to your cash timeframe
Businesses often split their savings into different “tiers” based on how long they can set funds aside. This can help when comparing accounts with different access terms and interest types:
⚠ This is general information and does not constitute financial advice. You should consider speaking to a qualified adviser if you're unsure about which savings account is right for your business.
5. Minimum deposit and eligibility
Minimum deposit requirements vary. Some accounts can be opened with £0, while others may need up to £10,000. Consider how much your minimum deposit will be to choose the best savings account for your business.
6. Online features
Look for accounts with strong digital features, like online dashboards, mobile apps, and multi-user access. These tools make it easier to manage funds, especially useful if your team includes finance managers or directors.
Tax, legal & practical considerations for business savings accounts
When using a business savings account, there are a few important things to keep in mind, especially around tax, accounting, and how it might impact your business financially.
This is general information only and does not constitute tax or legal advice. For tailored guidance, speak with a qualified accountant or legal advisor.
Which account type is best for your business?
Use this quick table to match your savings goal with the right type of account:
Business goal | Recommended account type | Why |
Emergency fund | Easy Access | Full flexibility, quick access to funds |
Short term planned expenses | Notice Account (35–180 days) | Higher interest, access with planning |
Long term growth investment | Fixed-Term (1–3 years) | Maximised interest, encourages discipline |
How business savings can help you access a loan
Building a cash buffer isn’t just smart money management, it can directly improve your chances of securing a business loan.
When lenders assess your application, they look at whether your business has surplus funds, good financial discipline, and a track record of managing money well. A well-funded business savings account shows you have the ability to generate and retain cash, a strong sign that you can handle debt responsibly.
By building and maintaining a savings buffer, you demonstrate lower risk and may qualify for better rates or access larger credit lines.
💡 Want to learn how to boost your credit profile and loan approval chances? Read our guide on how to build credit for a business loan.