A high-interest business savings account tends to offer a more competitive interest rate compared to standard business savings accounts, but you may need to lock your money away for longer. They are designed for businesses who want to maximise the growth of any money not needed right away.
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Business savings accounts
Find the best business savings account to suit your needs
Earn more interest on spare funds to fuel your small business growth
Consider the savings goals for your business
Compare interest rates, fees and minimum deposits
Choose the right business savings account for your needs
Consider the savings goals for your business
Compare interest rates, fees and minimum deposits
Choose the right business savings account for your needs
Our best business savings account deals
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Earn up to 4% AER (variable), no limits or fees, FSCS protected
Tide Instant Saver
Term
Instant access
Open with
£1
Interest rate
3.35%AER up to4.0%variable
Save more, earn more—up to 4% AER (variable). Interest rates are tiered, with the top rate for balances over £1M. Each tiered rate applies to the portion within that range. New Tide members get these rates free for 6 months; after that, your Tide plan’s rates apply. FSCS-Protected, Bank Account by ClearBank
More Information
Rate Tiers
| Gross rate | Gross rate | AER rate | AER rate | |
|---|---|---|---|---|
| Excluding bonus | Including bonus | Excluding bonus | Including bonus | |
| £1 | 3.3% | 3.3% | 3.35% | 3.35% |
| £100,000 | 3.5% | 3.5% | 3.55% | 3.55% |
| £500,000 | 3.8% | 3.8% | 3.86% | 3.86% |
| £1,000,000 | 3.93% | 3.93% | 4% | 4% |
Eligibility
| Minimum Initial Deposit | £1 |
| Minimum Age | 18 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
3.56%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 rate | Gross rate | AER rate | AER rate | |
|---|---|---|---|---|
| Excluding bonus | Including bonus | Excluding bonus | Including bonus | |
| £1 | 3.5% | 3.5% | 3.56% | 3.56% |
Eligibility
| Minimum Initial Deposit | £1 |
Top up or access your savings instantly. No fees or charges
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
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Rate Tiers
| Gross rate | Gross rate | AER rate | AER rate | |
|---|---|---|---|---|
| Excluding bonus | Including bonus | Excluding bonus | Including bonus | |
| £1 | 3.49% | 3.49% | 3.55% | 3.55% |
Eligibility
| Minimum Initial Deposit | £1 |
| Minimum Age | 18 years |
| Permanent UK Resident |
Earn up to 4.08% AER (variable), interest paid monthly
Allica Bank Instant Access Savings
Term
Instant access
Open with
£50,000
Interest rate
Up to4.08%AER variable
Rate includes standard rate of 3.08% AER (minimum balance applies) plus a 0.5% boost each month if you make 15 bank transfers out of the account in the previous month, and a 0.5% boost for six months if you complete a switch with CASS.
Eligibility criteria and T&Cs apply
More Information
Rate Tiers
| Gross rate | Gross rate | AER rate | AER rate | |
|---|---|---|---|---|
| Excluding bonus | Including bonus | Excluding bonus | Including bonus | |
| £1 | 0% | 0% | 0% | 0% |
| £20,000 | 2.08% | 2.08% | 2.08% | 2.08% |
| £40,000 | 3.08% | 4.08% | 3.08% | 4.08% |
Eligibility
| Minimum Initial Deposit | £50,000 |
| Minimum Age | 18 years |
| Permanent UK Resident |
Covered by FSCS up to £85,000
Allica Bank 6 Month Fixed Rate Account
Term
6months
Open with
£20,000
Interest rate
3.60%AER fixed
More Information
Rate Tiers
| Gross rate | Gross rate | AER rate | AER rate | |
|---|---|---|---|---|
| Excluding bonus | Including bonus | Excluding bonus | Including bonus | |
| £20,000 | 3.57% | 3.57% | 3.6% | 3.6% |
Eligibility
| Minimum Initial Deposit | £20,000 |
| Minimum Age | 18 years |
| Permanent UK Resident |
Covered by FSCS up to £85,000
Allica Bank 1 Year Fixed Rate Account
Term
1year
Open with
£20,000
Interest rate
3.60%AER fixed
More Information
Rate Tiers
| Gross rate | Gross rate | AER rate | AER rate | |
|---|---|---|---|---|
| Excluding bonus | Including bonus | Excluding bonus | Including bonus | |
| £20,000 | 3.6% | 3.6% | 3.6% | 3.6% |
Eligibility
| Minimum Initial Deposit | £20,000 |
| Minimum Age | 18 years |
| Permanent UK Resident |
Covered by FSCS up to £85,000
Allica Bank 180 Day Notice Account
Term
180days notice
Open with
£20,000
Interest rate
3.95%AER variable
More Information
Rate Tiers
| Gross rate | Gross rate | AER rate | AER rate | |
|---|---|---|---|---|
| Excluding bonus | Including bonus | Excluding bonus | Including bonus | |
| £20,000 | 3.95% | 3.95% | 3.95% | 3.95% |
Eligibility
| Minimum Initial Deposit | £20,000 |
| Minimum Age | 18 years |
| Permanent UK Resident |
Covered by FSCS up to £85,000
Allica Bank 95 Day Notice Account
Term
95days notice
Open with
£20,000
Interest rate
3.90%AER variable
More Information
Rate Tiers
| Gross rate | Gross rate | AER rate | AER rate | |
|---|---|---|---|---|
| Excluding bonus | Including bonus | Excluding bonus | Including bonus | |
| £20,000 | 3.9% | 3.9% | 3.9% | 3.9% |
Eligibility
| Minimum Initial Deposit | £20,000 |
| Minimum Age | 18 years |
| Permanent UK Resident |
How to compare business savings accounts
It's important to find the right business savings account for your needs, so here's how you can compare the deals on offer...
Decide on savings goals
It's important to know whether you have short-term or long-term goals for your business savings, as this will determine what type of savings account you need. If you're saving for an emergency fund, an instant access account could be a good option.
Explore key features
If you want to successfully compare business savings accounts, you have to understand the different features available. For example, check the interest rates, fees, minimum deposits and whether the accounts come with any extra business tools.
Review the provider
Once you've narrowed down the search, remember to research the provider to make sure it aligns with your business' financial needs. Check customer support reviews, what digital tools are available and whether your money will be FSCS protected.
What is a business savings account?
A business savings account is designed to help your company grow its money, just like a personal savings account. It earns interest on funds you don’t need right away, making your money work harder by earning interest in the background.
Compared to a standard business current account, a savings account can offer a higher interest rate, so it’s often a good idea to keep your savings separate from the money you use on a day-to-day basis. This not only helps you make the most of any surplus cash, but also gives you a buffer for any unexpected costs that might crop up.
It’s a simple way to stay on top of your finances and build a stronger, more resilient business.
Why does your business need a savings account?
A business savings account can offer a range of benefits which supports the growth of your business.
1. Higher interest
You could earn more interest on your money in a savings account compared to a standard business current account. So, if your money is currently earning little to no interest, then it’s time to move it.
2. Keeps your finances separate
Keeping your business finances separate from your personal finances helps to maintain a clear line between the two - meaning you can be far more organised with accounting and financial management.
3. Peace of mind
A savings 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 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. Supports future investments
A business savings account allows you to plan for future investments, emergencies and the expansion of your business via the savings pot.
What type of business savings account should I get?
High-interest business savings account
A high-interest business savings account tends to offer a more competitive interest rate compared to standard business savings accounts, but you may need to lock your money away for longer. They are designed for businesses who want to maximise the growth of any money not needed right away.
Instant access business savings account
An instant access business savings account allows you to access your money quickly and without restrictions. This flexibility makes it easier to manage business cash flow and respond quickly to any unexpected bills.
Notice business savings account
A notice business savings account requires you to give advance notice before you can access your cash. The notice needed will depend on the terms and conditions set by the account provider, usually ranging from seven days to a few months. In return, you tend to get higher interest rates than an instant access account.
Fixed-term business savings account
A fixed-term business savings account will have a set period of time where you cannot withdraw your money. The period will vary and it’s agreed when you open the account. This type of savings account usually has some of the best interest rates on offer, but there’s little flexibility when it comes to accessing the money.
What type of business savings account should I get?
High-interest business savings account
Instant access business savings account
An instant access business savings account allows you to access your money quickly and without restrictions. This flexibility makes it easier to manage business cash flow and respond quickly to any unexpected bills.
Notice business savings account
A notice business savings account requires you to give advance notice before you can access your cash. The notice needed will depend on the terms and conditions set by the account provider, usually ranging from seven days to a few months. In return, you tend to get higher interest rates than an instant access account.
Fixed-term business savings account
A fixed-term business savings account will have a set period of time where you cannot withdraw your money. The period will vary and it’s agreed when you open the account. This type of savings account usually has some of the best interest rates on offer, but there’s little flexibility when it comes to accessing the money.
What to expect from interest rates on business savings
Top interest rates on business savings accounts are above 4%, so you could consider moving your money if it’s currently earning little interest. This is a similar story to personal savings accounts, so you won't be missing out on higher rates. However, the Bank of England has dropped and subsequently held the base rate at 4%, so this will impact the market.
Our best interest rate is 4.08% as of 18th November 2025, but we don’t know how long these rates will last. It’s best to act quickly if you want to secure high interest rates.
How to choose the right savings account for your business
The key to choosing the best business savings account is to look at all features on offer and decide which is the most important for your business.
Consider interest rates
Remember, the higher the interest rate doesn’t always mean the best account for your business. This is because some interest rates will mean you can’t access the money until the end of a specific term - which might be a deal-breaker. Also watch out for tiered interest rates as you might not get the highest interest rate if your balance is below a certain number.
Check fees and charges
If a deal looks too good to be true - there could be a catch. This normally comes in the form of fees and charges for using the savings account. So make sure you are aware of any monthly fees before applying. If a savings account doesn’t have any, this could help you choose one account over another.
Meet minimum balance requirements
Many business savings accounts have a minimum opening balance, so if you can’t meet this requirement this means the account probably isn’t the right one for you. You’ll also find some savings accounts require a minimum balance at all times, so it’s essential that your business will be able to keep this balance to avoid any penalties or fees.
Evaluate accessibility
Depending on the type of business savings account you choose, there will be different accessibility features. For example, a fixed-rate account might not allow withdrawals or transfers for a specific period of time, but an instant access account will have the flexibility of unlimited withdrawals. This knowledge will help the decision-making process.
Do your research
As well as considering all the features of a business savings account, it’s always worth doing some research on the provider you are considering. Do they offer 24/7 support? Is customer feedback positive or negative? This will help you to decide whether your business’ savings are going to the right place.
How to apply and eligibility criteria
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
Some providers may offer time-limited interest rates, so it’s worth checking the details in advance and having your documents ready. Make sure to review any additional eligibility criteria before you apply.
Opening a business savings account is usually straightforward. You can typically apply online or in branch, and the provider will guide you through the process, including submitting key information about you and your business. Once approved, your account should be up and running quickly.
What are the pros and cons of a business savings account?
Pros
Earn interest on your money
Keeps savings separate from your daily operating funds
Variety of accounts to suit your savings goals
Some business savings accounts are protected by the FSCS
Lower risk compared to investing
Cons
Returns can be lower compared to other investing options
Some savings accounts have restrictions like withdrawal limits and minimum balance requirements
It might not include other business perks like invoicing tools
Paying tax on your savings
Understanding your tax obligations is crucial when you’re running a business. Not only can it help you maintain cash flow without any unforeseen shocks, but it helps you keep your business finances organised.
Any interest made on your business savings is paid without any tax deducted. This means you’ll 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 2025/26 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.
What other business products are available?
Business bank account
A business bank account is designed for managing business finances, so you can keep your personal finances separate. This is important for accounting and tax purposes, plus it helps businesses pay expenses, receive payments and manage cash flow.
Compare business bank accountsBusiness loans
Business loans come in both short-term and long-term options, with fixed interest payments. To choose the right loan, it's crucial to determine your business's specific needs and assess various loan products.
Compare business loansBusiness credit card
A business credit card can be a helpful tool in managing your cash flow, simplifying accounting and making it easier to buy what you need, when you need it. There are several types of cards available, from purchase and balance transfer to rewards cards.
Compare business credit cardsFAQs
What interest rate can I get on a business savings account in the UK?
Our best interest rate on a business savings account is 4.08% as of 18th November 2025.
What is AER?
AER is the Annual Equivalent Rate and highlights what interest you'll earn on your business savings over a year. The AER is important as it helps you to compare savings accounts, as you can see which ones are offering a higher interest rate.
Can I use a personal savings account for my business?
No, you shouldn’t use a personal savings account for business purposes. Mixing personal and business finances can lead to legal and tax complications, especially when it comes to accounting and reporting to HM Revenue & Customs (HMRC).
If you operate as a limited company, using a personal account can also weaken your limited liability protection. That legal separation between you and your business exists for a reason – combining finances could put that at risk.
On top of that, managing your business finances from a personal account can make it harder to track expenses, income, and overall profitability. It can also cause confusion when preparing financial statements or filing your tax return.
To keep things clean, compliant, and easier to manage, it’s best to open a dedicated business bank account.
Should a small business have a savings account?
A small business should have a savings account if they want to manage their finances more effectively. This could be building an emergency fund for unexpected expenses or taking the opportunity to earn interest on surplus funds.
Can I have multiple business savings accounts?
Yes, you can have multiple business savings accounts. However, having too many accounts across different providers can cause confusion, so try to streamline this where possible.
How do I open a business savings account?
It’s fairly straightforward to open a business savings account – you just need to follow a few simple steps. For example:
1. Choose the right business savings account for your needs
2. Check your eligibility for this account
3. Start application process online or in branch
4. Share relevant information with the provider about your business
5. Receive final documentation
6. Login to account and add funds
Are business savings accounts covered by the FSCS?
Yes, some business savings accounts are covered by the Financial Services Compensation Scheme (FSCS) – but not all. That’s why it’s essential to check whether your chosen provider offers FSCS protection before you apply.
Just like with personal savings, FSCS protection covers up to £85,000 per person, per financial institution. This means if the bank or building society fails, your eligible business savings are protected up to that limit.
Always look for confirmation of FSCS protection when comparing business savings accounts, especially if you're planning to deposit a large sum.
Are there any fees or charges associated with a business savings account?
In terms of fees or other charges, this will completely depend on the provider and your chosen business savings account. This is why it's important to check the terms of the account before applying, so you can then understand if there are any extra charges.
What are business deposit accounts?
Business deposit accounts is another name for a business savings account. It helps businesses to separate their savings from daily spending and enables them to earn interest on surplus cash.
Are business savings accounts tax-free?
Business savings accounts are generally not tax-free. Interest earned on these accounts is typically subject to taxation, just like personal savings accounts.
Be sure to check specific tax regulations or consult with a tax advisor to understand your business’s tax obligations regarding savings.
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