Best business savings accounts

After getting started on your business journey, it's a good idea to assess how you can make even more out of the money in your business bank account by earning interest on it

2 January 2020

If you have a surplus of funds that you need easy access to, it could be worth looking for an instant access business savings account. These mean you can earn a modest interest rate on your savings, while also making it simple to access funds as and when you’d like.

If you know you'll only need to access your funds in advance – such as in 30 or 100 days, or another time period – perhaps a notice business savings account would be better suited for you. That's because they usually provide a better interest rate. For maximum returns, a fixed-term account is for you, but keep in mind that this means you’ll not be able to access the funds until the term is completed.

Each business savings account provider has its own terms and conditions, including eligibility requirements, deposit minimums and maximums, types of accounts, interest rates and penalties. We’ve tried to make this easy to digest by providing the information you need to open a business savings bank account, plus a handy comparison of the top UK accounts for 2020.

To jump straight to the FAQ section, click here. (There’s always a lot of questions about bank accounts, and we’ve gone through the main ones).

Comparison: which is the best business savings bank account for me?

Use the table below to navigate, or simply scroll down to discover the best 25 business savings bank accounts in the UK. Banks are ranked by Trustpilot score.

CompanyTrustpilot ScoreMinumum Deposit Ammount
Shawbrook Bank4.2/5£5,000
Metro Bank3.9/5N/A
Cumberland Building Society3.8/5£1 - £100
Redwood3.4/5£10,000
Masthaven2.8/5£5,000
Aldermore2.6/5£1000
Kent Reliance2.1/5£1,000
Nationwide1.9/5£5,000
Lloyd’s Bank1.7/5£1 - £10,000
Clydesdale Bank1.7/5£5,000
Yorkshire Bank1.6/5£5,000
Bank of Scotland1.6/5£1 - £10,000
NatWest1.5/5£0 - £25,000
Santander1.5/5£1 - £5,000
Barclays1.5/5Variable
HSBC UK1.5/5Variable
Royal Bank of Scotland1.4/5No minimum
Virgin Money1.4/5£1
TSB1.4/5£1
Cambridge Building SocietyNone£1,000
Charity BankNone£1,000 - £10,000
Cynergy BankNone£10,000
Hampshire Trust BankNone£5,000
State Bank of IndiaNone£10,000
United Trust BankNone£5,000

Every care has been taken to provide accurate information on each business bank account provider. All facts and stats are correct (according to the bank account providers' websites) as of 2nd January 2020.

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Below we have gone through each of the bank providers and their business savings accounts in more detail:

1. Shawbrook Bank

Trustpilot score: 4.2/5 (957 reviews)

Main features:

  • Deposit between £5,000 and £2 million
  • Competitive returns with 1 Year Fixed Rate Business Savings Bond
  • Notice accounts typically have 100 days notice on fiunds withdrawal
  • UK-based bank with a focus on savings
  • Competitive savings rates
  • 1.25% annually on one year fixed term

Shawbrook Bank is a specialist UK savings and lending bank founded in 2011, which focuses on the needs of SMEs and individuals in the UK. As well as mortgages and loans, the company provides a range of business savings accounts.

For those that want to put money aside for a specific amount of time, the fixed rate bond is a good option, while for those that don’t want to tie their money up to a fixed–term can go for a 100 day business notice account.

Find out more about Shawbrook’s business savings accounts here

2. Metro Bank

Trustpilot score: 3.9/5 (1,556 reviews)

Main features:

  • Instant access deposit accounts with a 0.30% AER (variable) interest rate
  • Business fixed term deposit account with interest rates between 0.35% and 1.60% AER
  • Business notice accounts with interest rates of 0.75% to 1.05% AER (variable)
  • Small business owners can walk into a branch and open an account without an appointment
  • Alternative options for client deposits, charities and community groups
  • No hidden fees
  • Open 7 days a week, 362 days a year

Metro Bank offers a range of deposit accounts depending on your needs. For those who want control of their money at all times, there’s the Instant Access Deposit Account, where the more money put in, the more interest is earnt. For those who are looking for a better return on their money and are happy to put it away for a fixed term – even as little as one month – they can turn to the Fixed Term Deposit Account. With this, the longer you put funds away, the higher the interest rate. The maximum is 2 years, with a minimum deposit of £5,000. Finally, those who know they will need the money back in a specific amount of time – 35 days, 60 days or 95 days – can go for the Business Notice Account.

The company has has faced issues in the press, but still had a high number of business customers satisfied with services in branches and business services (77%), according to the Competitions and Markets Authority’s independent survey in August 2019.

Find out more about Metro Bank’s business savings accounts here

3. Cumberland Building Society

Trustpilot score: 3.8/5 (2 reviews)

Main features:

  • Four types of business accounts
  • Instant Access with a variable interest rate up to 0.45% Gross interest/AER
  • eSavings account for online business users, with a variable interest rate up to 1% Gross interest/AER
  • 40 Day Notice account, with 0.55% variable interest rate
  • 2 Year Fixed Rate of up to 1.05%, interest is fixed until 21 July 2021
  • Appointments can be booked online to discuss which account is best suited to you.

Cumberland Building Society is based in Cumbria, with a branch operating area covering Cumbria, South West Scotland, West Northumberland and North Lancashire. It offers mortgages, savings and current accounts in this area.

The organisation, which is rated 4.8/5 on Feefo, based on independent customer feedback, has an Instant Access account, which allows users to withdraw up to £500 each day in cash and up to £99,999,99 by crossed cheque. The minimum balance is £100 and the rate of interest paid on money in the account is variable so it is subject to change.

Great for small and medium operations, the eSavings account can be opened with just £1, with a maximum balance of £1m. All accounts are only for customers that live in its operating area.

Find out more about Cumberland Building Society’s business savings accounts here

4. Redwood

Trustpilot score: 3.4/5 (3 reviews)

Main features:

  • Three different accounts – two notice accounts, and a savings bond
  • Competitive interest rates
  • FSCS Protected up to a total of £85,000
  • 35 Day Business Savings Account with interest of 1.60% AER
  • 95 Day Business Savings Account with interest of 1.75% AER
  • 1 Year Business Savings Bond with interest of 2.00% AER
  • Minimum balance of £10,000
  • Maximum balance of £1m
  • Unlimited withdrawals and top-ups

Redwood Bank launched in August 2017, with the aim of offering an alternative for SMEs looking to make their cash work harder for them. All three of the rates offered are competitive, although the company does not offer an instant savings account like many other providers.

You can apply online and can cancel in the first two weeks if it is not right for you. For the 35 Day account, there is a choice of receiving interest annually at a rate of 1.60%, or monthly at a rate of 1.59% - both at 1.60% AER. Customers can add up to four authorised users on Redwood savings accounts.

To find out more about Redwood Bank’s business savings accounts, click here

5. Masthaven

Trustpilot score: 2.8/5 (4 reviews)

Main features:

  • Create your own savings account
  • Handy interest calculator
  • You can save between £5,000 - £500,000
  • Your savings maturity date can be as little as six months and as long as five years
  • 1 Year account offers a rate of 1.80% AER, 5 Years offers a rate of 2.10% AER
  • Money cannot be taken out before end of term
  • Account is for sole traders and limited companies

Masthaven has been providing bridging loans and secured lending services since 2004, and in 2016 it was awarded a banking licence to enter the retail banking space. While the provider is not a household name, it is regulated, meaning deposits of up to £85,000 are protected by the FCSC.

The company has a handy calculator which can be used to work out how much interest you would stand to make, depending on the fixed-term duration and the amount of money you put in. For example, if you were to put in £80,000 for a 15-month fixed term, the bank will offer an interest rate of 1.83% AER, meaning the indicative return is £81,836.52.

To find out more about Masthaven’s business savings accounts click here

6. Aldermore

Trustpilot score: 2.6/5 (84 reviews)

Main features:

  • Accounts tailored for SMEs
  • Accounts can be opened with £100 up to £1m
  • FSCS regulated
  • Easy Access Account with an interest of 1.00% AER
  • Interest calculated daily and paid monthly or annually
  • Unlimited fee-free withdrawals
  • Fixed Rate Business Savings Accounts offers an interest of 1.15% for six months or 1.85% for one year
  • Fixed Rate 1 Year With Access offers an interest of 1.15% - this allows one withdrawal of up to 25% of savings
  • Useful rate checker tool

Aldermore was founded in 2009 and offers homeowners, landlords, savers and SMEs a range of financial products and services.

The company offers three fixed rate accounts – including one with access, which is uncommon. Customers can open an account with a minimum of £1,000 and a maximum of £1m, and there is a rate checking tool for users to get a better understanding of what rates they would get depending on the account chosen. The company previously had a five year fixed term account, but this has since been scrapped. For those with more than £1m in business savings, the company offers corporate savings accounts.

Find out more about Aldermore’s business savings accounts here

7. Kent Reliance

Trustpilot score: 2.1/5 (37 reviews)

Main features:

  • Open an account online in 10 minutes
  • For private limited companies only
  • Minimum opening deposit £1,000
  • Annual or monthly interest rates of 0.90%
  • Companies must have a maximum of 3 Directors to be eligible
  • FSCS protection of up to £85,000

Kent Reliance is based in the South East of England, with branches across the area. The company provides products including savings, ISAs, bonds, mortgages and business savings accounts.

Kent Reliance provides one type of business savings account, which offers the same rate for interest paid annually or monthly (0.90%). It is a variable interest account that offers instant access to savings without the need to give notice or be subject to penalties. You don’t have to be based in the South East of England to apply, as you can apply online in just 10 minutes for the business savings account with an initial deposit of £1,000.

For more information on Kent Reliance’s business savings account, click here

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FAQs about business savings bank accounts

How do you set up a business saving bank account?

Most business saving bank account providers have an online application which doesn’t take long to fill out. This will help the bank to determine if you can open a business savings bank account with them. Some providers only allow you to open the account in-person at a branch, while others only accept applications by post. All providers will be able to help customers over the phone with any questions.

It’s worth checking how much access to your money you get, what the interest rate is, whether there are penalties for withdrawing your money, and how you can manage the account.

What do you need to set up a business savings account?

Generally, this is what you need to open a business savings account:

  • Be UK based
  • All owners, directors and account users have to be at least 18 years old
  • A business current account (not necessarily with the same provider)

All accounts have their own terms and conditions – some allow you to open an account with just £1, while others require a minimum of £10,000, so it’s worth reading exactly what the requirements are before signing up.

Are they covered by FSCS?

The majority of banks have Financial Services Compensation Scheme (FSCS) protection, which aims to protect customers of financial services firms that have failed. It means up to £85,000 of an eligible deposit is protected. For more information on the FSCS click here

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Sooraj Shah is a freelance business, technology and financial writer. He is a contributing editor of the New Statesman and a regular contributor to Forbes, specialising in cloud computing, dev-ops, the internet of things, cyber security, big data, artificial intelligence, and machine learning.

Article updated on: 2 January 2020

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