Eligible deposits with UK institutions are protected by the Financial Services Compensation Scheme up to a maximum level of protection of £120,000 per business per institution. The deposits of most non-financial services businesses are covered up to the £120,000 limit.
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A business savings account is a savings account specifically designed for businesses, to allow them to earn interest on their surplus funds. They can be suitable for sole traders, limited companies, partnerships or not-for-profit clubs or charities.
Business savings accounts typically pay a higher rate of interest than business current accounts, so they can be a useful tool to help you get a better return on your business finances.
There are many reasons why a business would find it useful to have a savings account.
Rather than keeping any excess money in your business current account where it may not earn any interest, it’s worth putting it in a savings account to maximise returns. This means your money can grow in value and, if you deposit it in an easy access account, you can still draw on your funds when you need to.
Savings accounts can help you build up an emergency fund, or buffer, which you can dip into when needed. For example, having some savings to turn to can be useful if your business runs into cashflow issues or needs to cover an unexpected expense, such as emergency repairs. Without any savings, your business may have no option but to borrow money to cover these expenses.
Whether you’re a sole trader or a limited company, you’ll need to pay some form of tax. A savings account is a useful place to put aside the money for your tax bill, whether it’s income tax, corporation tax or VAT, to ensure the money doesn’t get mixed up with your everyday finances.
If you have big plans for your business and you’re planning to expand or purchase new equipment, for example, a business savings account can help you build up the money towards this goal.
Savings accounts can help businesses plan and manage their cashflow more effectively. For example, seasonal businesses may deposit excess money into savings during peak times and use these funds to cover any shortfalls during slower trading periods.
Unlike savings accounts, current accounts are a useful way to manage your day-to-day business finances. See our charts to compare business bank accounts.
Like an individual, a business can earn interest on its money by putting it into a savings account. However, while this can allow businesses to generate higher returns on their money than if they left it sitting in their business current account (which is likely to pay little to no interest), it’s crucial to check the interest rate of each account.
A high-yield business savings account could provide a welcome boost to the finances of a business, but there are many savings accounts on the market that offer relatively low rates. As a result, it’s a good idea for businesses to regularly review where they put their money and ensure it is in a high interest business savings account offering a competitive return.
Business savings accounts usually pay compound interest. Compound interest is when interest is paid on your initial deposit as well as any interest previously earned. This can help your business savings grow faster, even if you don’t make any further deposits, as you earn interest on your previous interest payments.
By contrast, if interest is paid out into your business bank account, for example, you won’t receive the benefits of compounding as interest will only be paid on your deposits, not the interest already earned.
The banks offering the top business savings rates will vary as providers amend their products. Bear in mind that high street banks and the more well-known providers may not offer the best rates; you may find that building societies and less-familiar online providers are the brands that feature near the top of our charts.
There are also providers that specialise in business finance products, such as Cambridge & Counties Bank, Redwood Bank, Allica Bank and Tide that may feature competitively on our charts.
Although it may seem an easy option, don’t just open a savings account with your business current account provider as this may not necessarily pay the best rate.
You can use our comparison charts to find the best business savings account UK providers currently offer that’s the most suitable for your firm.
This depends. Online business savings providers may pay higher rates on their accounts than high street banks, but the interest rate isn’t necessarily the only factor to consider.
For example, while some businesses may find it more convenient to manage their savings accounts online, others may prefer to use a high street bank if they want the option to visit a branch to manage their savings in person.
Some businesses may also choose a high street bank because of its established reputation. However, online providers need to meet the same regulations and offer the same protection as high street banks, so your money is just as safe in an online account.
See our charts to compare rates on business easy access savings accounts, business notice accounts and fixed bonds for businesses.
Business savings are usually protected by the Financial Services Compensation Scheme (FSCS) in the same way that personal savings are.
Under this scheme, up to £120,000 that your business has saved with a banking provider is protected should the bank fail. Bear in mind that this limit applies to each banking licence, so it’s worth checking which providers operate under the same licence.
If your business is a limited company or limited liability partnership, you will have a £120,000 limit for your business savings and a £120,000 limit for your personal savings per provider.
However, if you’re a sole trader or a partnership (which means you and your business are not legally separate), you’re only protected up to £120,000 per banking licence across both your personal and business savings. As a result, if you’re a sole trader and have £80,000 in personal savings and £40,000 in business savings with the same bank, you will reach the maximum level of FSCS protection for that provider.
If your business has more than £120,000 saved with one provider, the amount above this limit won’t be protected under the FSCS. If you have more than this sum in savings, it’s a good idea to split it between different providers to make sure it’s all protected.
If you have more than one business savings account with a bank (or providers operating under the same banking licence), the £120,000 limit applies to the total of your deposits across all your accounts.
You don’t get a separate £120,000 limit for each individual account.
Many savings providers have cut rates in recent months, but businesses can still find accounts paying 4.00% AER or more.
The best business savings account interest rates can be found on fixed bonds, with several providers offering above 4.10% AER on accounts with fixed terms of one year up to five years.
As well as providing some of the top returns on the market, fixed bonds may appeal to businesses that want to protect their money from any future drops in interest rate, as long as they won’t need to dip into their savings for several years.
If businesses want access to their money, the leading notice accounts offer above 3.90% AER. However, these accounts may require businesses to wait 90 days or more before receiving any money they want to withdraw, which may not be ideal if they need to cover emergency costs.
Easy access accounts offer more flexibility and allow businesses to withdraw money immediately but, unsurprisingly, this means they typically pay lower interest rates than other types of business savings accounts. Nevertheless, businesses can still choose from several accounts paying 3.70% AER or more, which is a significantly higher interest rate than they could earn by keeping their money in their current account.
While the above information is accurate at the time of writing (27 February 2026), providers can amend rates at short notice. For the most up-to-date list of the top business savings rates currently available, see the tables above.
After four cuts to the Bank of England base rate in 2025, business savings rates declined as providers adjusted to the changing market.
And, while the Bank’s Monetary Policy Committee (MPC) voted to hold the base rate at its first meeting of 2026, it seems likely that business savings rates will continue on a gradual downwards trend over the coming year.
The MPC is expected to cut the base rate at least once in 2026, particularly if inflation continues to ease, which is likely to result in lower savings rates for business and consumers.
Any base rate changes have a particularly noticeable impact on easy access and notice accounts, but fixed bonds aren’t immune from any cuts or increases.
Because rates are predicted to fall, longer-term bonds could seem more appealing for businesses that want to ensure they earn a competitive return on their money (as long as they won’t need to access it for several years). Fixed bonds protect your money from any drops in rates whereas the interest paid on easy access and notice accounts can fall, leaving you vulnerable to any rate cuts.
Businesses that deposit £10,000 into a five-year bond paying the current market-leading rate of 4.16% AER (as of 27 February 2026) could earn approximately £2,260 in interest. Use our savings calculator to see how much interest you could earn.
You may need to pay tax on the interest you earn on your business savings. Savings interest is paid gross, which means you’re responsible for making sure you pay the correct amount of tax.
Sole traders and partnerships
They need to declare any savings interest on their Self-Assessment tax return and pay the required amount of tax on anything they earn above their allowance. You can currently earn up to £12,570 in total (from any source) before paying any tax. If your income (excluding savings interest) is below £17,570, you can earn up to £5,000 in interest tax-free. Otherwise, the amount you can earn on your savings without paying tax will be determined by the Personal Savings Allowance (PSA). Note that, as a sole trader, the PSA applies to interest earned on your business and personal savings.
Limited companies
Need to declare any savings interest on their tax return. They pay corporation tax on their profits, and this includes any interest they earn on their savings. The main rate of corporation tax is currently 25%, but you could pay a different rate depending on your business and the profit it makes.
Seek professional advice if you need help understanding your tax responsibilities.
There are a range of business savings accounts, also known as corporate savings accounts, available, depending on your preferences and whether you want access to your business funds.
Easy access business accounts pay a variable rate of interest, which means the provider could change the interest rate at relatively short notice. However, businesses can usually add to and withdraw from their savings whenever they choose, which could allow them to build up their savings when business is going well or dip into their savings if necessary.
You can access your money quickly whenever you need it.
You can add to your savings as often as you choose.
You could warn more interest if rates go up.
Interest rates may be lower than on other types of accounts.
Because interest rates are variable, you could earn less interest if rates drop.
Notice accounts also pay a variable rate of interest but, unlike easy access accounts, businesses need to wait a minimum number of days before withdrawing their money. This means you can still access your money if necessary but, because you have to wait the notice period, it removes some temptation of regularly dipping into your savings pot.
Interest rates may be higher than on easy access accounts and, as they are variable, rates could increase.
You can access your money if needed, although you have to wait a set period.
You can continue to deposit money in your account after opening.
You have to wait a certain number of days or months before accessing your money.
If interest rates drop, you could earn less interest than first thought.
Fixed business bonds pay a guaranteed rate of interest for the specified period which means the interest rate won’t fall. They may offer a higher rate of interest than variable accounts but, in return, businesses typically won’t be able to access money in the account until the end of the agreed term.
The interest rate won't change for the length of the fixed term.
Interest rates may be higher than on easy access accounts.
They can help you save towards longer-term business goals.
You can't access your money before the end of the term.
You may not be able to add to your savings after your initial deposit.
Owners of limited companies or limited liability partnerships (LLP) need to keep their business and personal finances separate by law.
This means they can’t put any of their business funds into a personal account, so they need to have a business current account for their day-to-day finances and a business savings account for any leftover funds.
If you’re a sole trader or in a partnership, you’re not legally required to keep your business funds in a separate account to your personal funds.
However, it may still be worth opening a business savings account as it can be confusing to keep track of your business finances in your personal account. Having a separate business savings account can make it easier to see how much money your business has and help you to fill out your tax return for HMRC, for example.
There’s technically nothing stopping you from putting your own personal money into your business savings account if you want to boost your business funds, for example. However, it’s important to think about your reasons for doing this, the risks involved and whether this is the best decision for you. If you do put personal money into a business savings account, it’s a good idea to keep a record of this.
Around £424 billion of businesses’ money was in savings or current accounts earning an average interest rate of 1.61% in June 2025, according to analysis of Bank of England data by investment platform Lightyear. This is significantly lower than current business savings rates and means businesses could potentially be getting a much better return on their money by shopping around.
Whether you have a small or large amount of money to put into savings, moving it to an account with a competitive interest rate could make a significant difference to your finances.
Every business is unique so it’s important to compare the features of different business savings accounts to make sure you choose a suitable option for your requirements. Some elements to consider include:
What is the interest rate?
Some accounts pay a higher rate than others, so it's a good idea to compare options. Make sure you check if the headline rate includes a bonus rate that applies for a limited period.
What is the eligibility criteria?
Crucially, you need to meet the requirements of an account to open it. Check the criteria as some accounts may only be available to certain business types or businesses in certain industries, for example.
Is there a minimum balance required?
While some providers may allow you to open a business savings account with a deposit of just £1, others may require a higher deposit of several thousand pounds.
Do you want to deposit a lump sum or make regular deposits?
Some providers may not allow you to add to your savings after opening, particularly if you open a fixed bond. If you want to add to your savings regularly, make sure you choose an account that permits this.
How can you open and manage the account?
Whether you want to manage your business savings account online, by mobile app or in branch, make sure you choose an account that offers your preferred method.
Are there any restrictions on withdrawals?
Fixed bonds typically don't allow you to withdraw money from the account until the end of the term, unlike easy access accounts. However, some easy access accounts may also limit withdrawals, so it's worth checking for any restrictions.
Small businesses and start-ups can open a business savings account. There are accounts available to sole traders and limited companies of varying sizes, so there is likely to be an account that is suitable for your business.
Make sure to look at the minimum deposit requirements of an account as some only ask for £1 while others ask for a hefty £20,000, which may not be possible for small businesses just starting out.
It could be relatively quick to open a business savings account. If you open an account online, it may only take a few minutes to fill out the application if you have all the required information to hand.
Depending on the provider and the complexity of your business, you may be able to open an account within one business day. However, it could take several working days before your application is approved if the provider needs to conduct further checks or requires more information.
When you open a business savings account, you normally need to provide certain personal details and information about your business such as:
The name and residential address of any directors and partners
Your business name and address
Your business current account details
Your company registration number (if applicable)
The annual turnover of your business
The number of employees
As part of your application, you may also need to provide one or more of the following documents to act as proof of identity and/or address:
A valid UK passport
A full UK driving licence
Bank statement for your nominated bank account (which you'll use for any deposits and withdrawals)
The provider should tell you if you need to provide any further information or documents.
Yes, businesses are allowed to have multiple savings accounts, and it can be beneficial to have two or more different accounts. For example, most businesses may find it useful to keep some savings in an easy access account, which they can dip into in an emergency or to cover any temporary or seasonal drops in income. For businesses that are just starting to build up a savings pot, easy access accounts can be a good starting point.
Some businesses may also want to open a notice account, in addition to an easy access account, as they often pay higher rates of interest, allowing businesses to get a better return on their money.
Meanwhile, businesses with a large savings pot that have sufficient money in an easy access account could consider putting a portion of their savings into one or more fixed bonds. This would give them a guaranteed return and protect their savings from the risk of falling rates, but they should only put money in these accounts if they won’t need to access it for the specified term.
For businesses with a decent amount in savings, it could be beneficial to split their money between fixed bonds with different terms. This means they can continue to receive the benefit of a guaranteed return on some of their savings, while gaining access to a portion of their money once a fixed term ends, which they can choose to put back into another savings account or spend, for example.
The number of savings accounts that’s right for your business, and the type of accounts you choose, will depend on your individual circumstances and financial situation.
You can compare the latest interest rates on business savings accounts by looking at the charts at the top of the page.
If you have an easy access account, you should be able to withdraw your money at any time. However, if you have a notice account, you’ll need to wait until the end of the specified notice period, while fixed rate bonds don’t usually allow you to access your savings at all until the end of the fixed rate term.
This depends. Easy access accounts don’t require any notice period when withdrawing your savings. But, if you have a notice account, you’ll need to provide the amount of notice specified on the account. This could be as little as 30 days or as much as 180 days.
You can often make regular deposits into easy access and notice accounts as they don’t typically set any restrictions on adding to your savings. However, fixed rate bonds may only allow you to deposit for a limited period after opening the account, while some don’t allow any further additions at all.
If you have a limited company, your business finances need to be separate from your personal finances. This means you can’t deposit any of your business savings into a personal account; the money needs to go into a company savings account.
Whether you’re a sole trader or a limited company, a business savings account can be a useful way to separate your everyday funds from the money you put aside to pay your taxes. Below are some tips to help businesses with their taxes:
Yes, business savings providers may require you to name a nominated account from which you can transfer money in and out of your savings account. The nominated account will usually be your business current account.
No, you can’t typically set up a Direct Debit from a business savings account. You can set up Direct Debits on your business current account instead.
Many providers require directors to be UK residents to open a savings account for their business. Businesses also need to be registered in the UK. However, there may be some savings providers with specialist accounts that can cater for directors who live outside the UK.
Providers won’t run a credit check when a business opens a savings account and, as it’s not a form of credit, it won’t directly affect your business credit score or help to build it. However, having a decent sum in a business savings account could help you if you decide to apply for credit in the future, as it could indicate to lenders that you have some financial stability.
If your business works and operates in multiple countries but is registered in the UK, you should be able to open a standard business savings account. However, depending on your requirements, some providers may offer international savings accounts which allow you to deposit multiple currencies from other countries, instead of needing to change it into pounds sterling.
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