Are you a business owner in the UK looking for the best business savings accounts for your company? With so many options out there, it can be hard to know which structure is most suitable for you. That’s why it pays to do your research and compare providers and products before choosing one.
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Co-Op Business Banking ✓ Business Current Account ✓ Online, App & High Street Banking ✓ Quick & Easy Application Process |
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HSBC Business Banking ✓ Business Current Account ✓ In-Branch, Online & App Banking ✓ FSCS Protected |
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Metro Business Banking ✓ Business Current Account ✓ High Street Presence ✓ FSCS Protected |
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Mettle Business Banking ✓ Business Bank Account ✓ Online & App ✓ Quick & Easy Application Process |
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Monzo Business Banking ✓ Business Current Account ✓ Dedicated mobile app experience ✓ FSCS Protected |
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Tide Business Bank Accounts ✓ Free, Plus, or Pro Account ✓ iOS & Android Mobile App ✓ Upload & Auto-Match Receipts |
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Virgin Money ✓ Business M Account ✓ In-Store, Online & App Banking ✓ Insights & Forecasting Platform |
In this article, we will provide an overview of different UK business savings accounts and their features, as well as offer some helpful tips and advice on how to choose the right one for you.
Best business savings accounts UK
| Bank | Lowest monthly fee | Offers current account? | Overdraft available? |
|---|---|---|---|
Aldermore | Free | No | No |
Allica Bank | Free | Yes | No |
Allied Irish Bank | £2.50 | Yes | Yes |
Atom Bank | Free | No | No |
Bank of Scotland | Free | Yes | Yes |
Cambridge Building Society | Free | No | No |
Cater Allen Private Bank | Free | Yes | No |
Charity Bank | Free | No | No |
Clydesdale Bank | £6.50 | Yes | Yes |
Co-operative Bank | £7 | Yes | Yes |
Cumberland Building Society | Free | Yes | Yes |
Cynergy Bank | £5 | Yes | Yes |
Danske Bank UK | £9 | Yes | Yes |
Hampshire Trust Bank | Free | No | No |
HSBC | £6.50 | Yes | Yes |
ICICI Bank UK | Free | Yes | No |
Kent Reliance | Free | No | No |
Kinetic | £6.50 | Yes | Yes |
Lloyds Bank | Free | Yes | Yes |
Masthaven | Free | No | No |
Metro Bank | £6 | Yes | Yes |
Monzo | Ask | Yes | No |
Nationwide | Free | No | No |
NatWest | Free | Yes | Yes |
OakNorth | Free | No | No |
Redwood Bank | Free | No | No |
Royal Bank of Scotland | Free | Yes | Yes |
Santander | £7.50 | Yes | Yes |
Shawbrook Bank | Free | No | No |
State Bank of India (UK) | £25 | Yes | Yes |
Triodos Bank | Free | Yes | Yes |
TSB | £5 | Yes | Yes |
Ulster Bank | £2.67 | Yes | Yes |
United Trust Bank | Free | No | No |
Virgin Money | £6.50 | No | No |
Yorkshire Bank | £5 | Yes | Yes |
What is a business savings account?
A business savings account is a type of saving option specifically designed for businesses. It allows companies to easily set aside and save money for future use, such as expansion, investments or emergency funds. Business savings accounts also provide an interest rate on the deposited balance, allowing businesses to generate income from their saved funds.
What are the benefits of a business savings account?
Business savings accounts offer several distinct advantages over other forms of saving. Firstly, they are typically more secure than traditional bank accounts as they are not subject to the same type of market fluctuations or potential losses that could occur with investments.
What is the best business savings account?
The best business savings account will depend on the individual needs and circumstances of your company. It is important to consider factors such as the amount of money you are looking to save, how quickly you need access to it, and any additional features that could be beneficial.
When choosing a business savings account, be sure to compare interest rates and fees and weigh up the pros and cons of each option. It is also worth researching the customer service and reputation of any potential provider, as this can give you a good indication of their reliability and trustworthiness.
Finding the best savings interest rates
This is also made easier with business savings accounts, as they typically offer higher APYs (annual percentage yields) than conventional business bank accounts. This means businesses can potentially generate more income from their saved funds. Additionally, many business savings accounts offer additional features such as online management and payment services, making the process of saving even simpler for businesses.
Consider instant access accounts
For businesses that require quick access to their funds, instant access accounts may be the best choice. These accounts give companies immediate access to their money and usually offer higher interest rates than traditional bank accounts.
It is important to remember, however, that some instant access business savings accounts may have lower maximum deposit limits or incur additional charges.
When would a business need a savings account?
Businesses may need a savings account to:
- Set aside money for short or long term goals
- Generate interest income from the balance
- Keep funds safe in case of emergency expenses
- Save taxes by avoiding early withdrawals on investments
What are the different types of business savings accounts?
There are several different types of business savings accounts, including:
- Regular Savings Accounts – these are basic accounts with lower interest rates
- High-Yield Savings Accounts – higher interest rates than regular savings accounts
- Money Market Accounts – a combination of features from checking and savings accounts
- Certificate of Deposit (CD) Accounts – offer higher interest rates for a fixed term
- Business Investment Accounts – designed for larger investments over the long term
Each type of business savings account has its own set of rules and features, so it’s important to research which one is best suited to your particular needs.
What fees are associated with business savings accounts?
Most business savings accounts have fees associated with them, such as an annual fee, minimum balance requirements and overdraft fees. It’s important to understand the fees associated with any account you open, as these could impact your savings and return on investment.
How to open a business savings account?
To open a business savings account, follow these steps:
How to open a business savings account
- Research the best options available
Compare interest rates, fees and features to find the right account for you
- Choose an institution
Decide on a bank or credit union that meets your needs
- Gather all necessary documents
You’ll need to provide necessary legal documents such as your company’s Articles of Incorporation
- Submit an application
Most institutions will require you to fill out an application form, either online or in person
- Set up transfers and deposit funds
Once the account is open, set up automatic transfers from your business checking account for regular deposits
- Monitor the account
Review statements regularly to ensure the funds are being deposited correctly and earning interest as expected
- Consider other investments
If you have excess funds, consider investing in stocks, bonds or mutual funds to earn additional income
FAQ
A business savings account is an account specially designed for businesses to save money. It allows businesses to earn interest on their deposits and manage their finances more efficiently by providing them access to their funds when needed.
Different banks offer different types of business savings accounts such as fixed rate, easy access and notice accounts. Each type offers different benefits based on the length of time you’ll need to withdraw your money or the rate of interest offered.
A business savings account offers a range of benefits including access to your funds when needed, the ability to earn interest on deposits and protection from market volatility. As well as this, it can provide businesses with a more secure source of income and help them manage their finances more efficiently.
To open a UK business savings account, you’ll need to provide documents such as proof of identity, a copy of your company’s registered address and any relevant paperwork. The specific documents required may vary depending on the bank you’re using.
When comparing different business savings accounts, it’s important to consider factors such as the rate of interest offered, the minimum balance required, any additional fees and the accessibility of your funds. Comparing different options can help you find an account that best suits your needs.
All UK regulated banks have a Financial Services Compensation Scheme (FSCS) which provides protection for up to £85,000 per person per institution. This means you can be sure your money is safe should anything happen to the bank. It’s important to check if your chosen bank is FSCS protected before opening an account.
Interest earned on a UK business savings account may be subject to taxation depending on the type of account and the amount of interest earned. It’s important to seek advice from a qualified financial adviser to ensure you understand any tax implications before opening an account.
The best UK business savings accounts will depend on your individual needs and financial goals. It’s important to compare different options before making a decision to ensure you choose the right account for your business. It’s also a good idea to research any fees or charges associated with each account so you know what you’ll be paying.
To open a UK business savings account, you’ll need to contact the bank of your choice and provide them with all the necessary documents. It’s important to compare different options before making a decision and make sure you understand any fees or charges associated with each account. Once your account has been opened, you can start saving money and earning interest on your deposits.