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Compare business savings accounts for your small business

A business savings account can help your business earn interest on money that isn’t needed right away.

Find the right business savings account for you

Compare interest rates and terms from leading providers
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Tide Instant Saver
Earn 4.07% AER (variable) on your business savings. *T&Cs Apply
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Virgin Money Business Access Savings Account
Save from £1 up to £2million with monthly interest

Business savings account deals

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Earn 4.07% AER (variable) on your business savings. *T&Cs Apply

Tide Instant Saver

Term
Instant access
Open with
Any amount
Interest rate
4.07%AER variable inc.0.75%fixed bonus until31 /03 /25
New customers joining Tide from 1/10/24 will receive a 0.75% boost on top of the 3.25% (gross) standard rate for Tide Instant Saver accounts. The rate will revert to standard Tide Instant Saver terms on 31/03/25
More Information
Rate Tiers
Gross rateGross rateAER rateAER rate
Excluding bonusIncluding bonusExcluding bonusIncluding bonus
£13.25%4%3.29%4.07%
Eligibility
Minimum Initial Deposit£0
Minimum Age18 years
No fees or charges. No maximum balance. You can't make withdrawals without notice

Virgin Money Online 120 Day Notice Account

Term
120days notice
Open with
£1
Interest rate
4.33%AER variable
You can't change your notice period. The rate is variable and is 0.50% Below Bank of England (BoE) base rate. Interest paid on this account will change by the end of the next working day after the BoE's base rate change. Virgin Money is a trading name of Clydesdale Bank PLC. Terms and eligibility criteria apply
More Information
Rate Tiers
Gross rateGross rateAER rateAER rate
Excluding bonusIncluding bonusExcluding bonusIncluding bonus
£14.25%4.25%4.33%4.33%
Eligibility
Minimum Initial Deposit£1

Virgin Money Business Access Savings Account

Term
Instant access
Open with
£1
Interest rate
3.55%AER variable
Save from £1 up to a maximum of £2 million with monthly interest. Rates are variable. Check the rate at point of application, as it may change. Terms and eligibility criteria apply
More Information
Rate Tiers
Gross rateGross rateAER rateAER rate
Excluding bonusIncluding bonusExcluding bonusIncluding bonus
£13.49%3.49%3.55%3.55%
Eligibility
Minimum Initial Deposit£1
Minimum Age18 years
Permanent UK Resident
Earn 4.08% AER (variable), interest paid monthly*

Allica Bank Instant Access Savings

Term
Instant access
Open with
£50,000
Interest rate
4.08%AER variable
Eligible customers are covered by FSCS up to £85,000. Businesses must be incorporated for at least 12 months.
Businesses keeping less than £50,000 in the account may earn a reduced rate of interest and incur fees. Allica's business current account comes with an Instant Access Savings Pot paying 4.08% AER* (variable). *T&Cs apply.
More Information
Rate Tiers
Gross rateGross rateAER rateAER rate
Excluding bonusIncluding bonusExcluding bonusIncluding bonus
£20,0004.08%4.08%4.08%4.08%
Eligibility
Minimum Initial Deposit£50,000
Minimum Age18 years
Permanent UK Resident

Allica Bank 1 Year Fixed Rate Account

Term
1year
Open with
£20,000
Interest rate
4.56%AER fixed
More Information
Rate Tiers
Gross rateGross rateAER rateAER rate
Excluding bonusIncluding bonusExcluding bonusIncluding bonus
£20,0004.56%4.56%4.56%4.56%
Eligibility
Minimum Initial Deposit£20,000
Minimum Age18 years
Permanent UK Resident

Allica Bank 6 Month Fixed Rate Account

Term
6months
Open with
£20,000
Interest rate
4.50%AER fixed
More Information
Rate Tiers
Gross rateGross rateAER rateAER rate
Excluding bonusIncluding bonusExcluding bonusIncluding bonus
£20,0004.45%4.45%4.5%4.5%
Eligibility
Minimum Initial Deposit£20,000
Minimum Age18 years
Permanent UK Resident

Allica Bank 180 Day Notice Account

Term
180days notice
Open with
£20,000
Interest rate
4.70%AER variable
More Information
Rate Tiers
Gross rateGross rateAER rateAER rate
Excluding bonusIncluding bonusExcluding bonusIncluding bonus
£20,0004.7%4.7%4.7%4.7%
Eligibility
Minimum Initial Deposit£20,000
Minimum Age18 years
Permanent UK Resident

Allica Bank 95 Day Notice Account

Term
95days notice
Open with
£20,000
Interest rate
4.60%AER variable
More Information
Rate Tiers
Gross rateGross rateAER rateAER rate
Excluding bonusIncluding bonusExcluding bonusIncluding bonus
£20,0004.6%4.6%4.6%4.6%
Eligibility
Minimum Initial Deposit£20,000
Minimum Age18 years
Permanent UK Resident
Last updated
October 17th, 2024

What is a business savings account?

Business savings piggy bank

A business savings account is a way for your business to earn interest on any money that it doesn’t need to use right away.

Working like a personal savings account, a business savings account lets you keep your money in a separate account to your business current account, where it could generate more interest than it might in a standard current account.

With a business savings account you can potentially see a return on your savings while also, with some types of savings accounts, keeping the money easily accessible for when it’s needed.

Having a business savings account helps you earn money on any funds you don't need to use right away.

Why do you need a business savings account?

A business savings account offers a range of features which, when combined, could benefit your business’s ability to deal with unforeseen events. 

1. Interest

Your business could earn interest on any money deposited into the savings account and the rates are usually always better than what you might find on a standard business current account. This allows you to grow your savings over time too.

2. Keep your finances separate 

Keeping your business finances separate from your personal finances helps maintain a clear line between the two - meaning you can be far more organised when it comes to accounting and financial management. 

3. Security

Keeping your money in an 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 that 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. Planning

Keeping funds in a business savings account allows you to plan for future investments, emergencies and the expansion of your business. 

5. Access your money 

Depending on the type of business savings account you opt for, funds can remain accessible for when you might need them, whether it’s for an unforeseen expense or to seize an opportunity. 

If your business is a limited company then you will not be able to use a personal savings account in just the same way a limited company cannot use a personal current account. This is because a limited company is a separate legal entity and so its finances must be kept separate.

How to apply & eligibility criteria

Business man eligibility

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 you want to go with. 

Once that’s all in hand - you can usually apply to open a business savings account online or in branch. The bank or account provider will take you through a series of steps, asking for details about you and your business. Once that’s all complete and you’ve provided the relevant documentation the account should be open and ready to use within a couple of days.

Paying tax on business savings accounts

As with anything relating to business finance, understanding your tax obligations is crucial. Not only can it help you maintain cash flow without any unforeseen shocks, it helps you keep your business finances organised all year round. 

Any interest made on your business savings is paid without any tax being deducted. That means you will 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 2023/24 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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