Comparing the best business savings accounts in 2024

If your business has savings, the good news is that it’s a great time to shop around. Moving to a high interest business savings account could be one of your most valuable decisions of 2024, given how quick it can be.

After a run of record lows in the Bank of England base rate, 2023 and 2024 saw it climb to a high of 5.25%. As of November 2024, it’s at 4.75%.

Most banks and lenders use the Bank of England as a marker for setting their own rates, meaning savings accounts are now offering impressive returns.

We want to empower SMEs to get smart with their savings, so you can use this article to compare different banks and their accounts, as well as answering some common questions about business savings.

 

What are business savings accounts?

A business savings account lets you store your money away from your current account where it can earn interest.

Business savings accounts are provided by authorised and regulated financial institutions, the same as business current accounts.

Unlike current accounts, savings accounts can’t be used for transactions, such as paying suppliers or salaries. They’re a separate and specific space for you to save your money and earn some interest, for either a fixed or ongoing period.

 

What makes a great business savings account?

We’ve only recently returned to interest rates that start with a number above zero, so the savings market is booming after years of negligible returns.

What makes for a great savings account is subjective, but it should be a mix of:

• Interest rate on offer

• Accessibility and ease of use

• Transaction and balance limits

• Customer service from start to finish

For many businesses, the interest rate is their main consideration. That’s understandable, but it’s not to say that other factors are irrelevant. The best account for you will blend high returns with your non-negotiable needs.

 

Types of business savings account compared

Savings accounts come in different shapes and sizes, offering unique benefits for businesses and suiting as many situations as possible.

None of the lists we share in this article are exhaustive, nor is the inclusion of any product to be interpreted as a recommendation. We recommend doing your own research before deciding to open a savings account.

There are three account types that we’ll focus on in this article:

1. Instant access/easy access

2. Notice

3. Fixed-term/fixed-rate accounts

Before we start listing accounts, let’s get clear on our definitions.

What is an instant access or easy access account?

You can make withdrawals and deposits without restrictions with these accounts. At most, you might have a maximum number of withdrawals you can make in a year.

These accounts typically use a variable interest rate. In other words, the rate can go up and down, so your returns could change from one month to the next.

What is a notice account?

To make a withdrawal, you have to give the bank notice within a certain timeframe (eg. 95 days) to access your funds.

Notice accounts generally use variable interest rates.

What is a fixed-term or fixed-rate account?

These accounts lock your savings away for a set period of time, guaranteeing your interest rate in return. You typically can’t make withdrawals or further deposits until the term is complete.

 

The 14 best instant access business savings accounts available in the UK

First up, let’s review some of the best instant access accounts on the market for SMEs today.

‘Best’ is a subjective word, but we’ve chosen the 14 accounts with the highest interest rates on offer. The best account for you might not be on this list.

Provider	Interest rate (AER)*	Detail	Minimum and maximum balance
Hampshire Trust Bank	4.37% (variable)	No online banking access	£5,000 - £750,000
Shawbrook Bank	4.36% (variable)	Maximum balance of £85,000, minimum withdrawal of £500	£1,000 - £85,000
Allica Bank	4.08% (variable)	Savings Pot product, only available with a Business Rewards Account	£1 - £5 million
Allica Bank	4.01% (variable)	Standalone product, separate from current accounts	£10,000 - £100,000
Saffron Building Society	4.00% (variable)	Interest rate only offered if your balance is above £5,000	£5,000 - £5 million
Cynergy Bank	4.00% (variable)	Withdrawals through online banking only	£1 - £10 million
Tide	3.29% (variable) + promotional rate of 0.78% (gross) until 31st March 2025 0% on any balance above £75,000	Only available with a Tide business current account	£1 - unlimited, but interest only paid on balances up to £75,000
Virgin Money	3.55% (variable)	Standalone product, separate from current accounts	£1 - £2 million
Revolut	3.51% (variable)	Linked to Enterprise current account plan	£0 - £2 million
Aldermore	3.40% (variable)	Limited and unlimited companies only	£1,000 - £1 million
Revolut	2.75% (variable)	Linked to Scale current account plan	£0 - £1 million
Revolut	2.25% (variable)	Linked to Grow current account plan	£0 - £500,000
Monzo	1.60% (variable)	Requires a current account	£0 - £100,000
Cooperative Bank	1.53% (variable) 1.44% (variable) from 22 January 2025	Requires a current account	N/A

Rates correct as at 27 November 2024, but please check rates and eligibility with the provider.

 

The 13 best notice business savings accounts available in the UK

Notice accounts are a fine choice if you know you won’t need to access your savings instantly. You might use one of these accounts to store savings for an upcoming project with a set payment deadline or ahead of paying a corporation tax bill.

As a general rule, the longer the notice period, the higher the interest rate a bank will offer you.

Again, our filter for “best” in this table is the highest interest rate, with the caveat that some shorter notice accounts may provide higher rates. That might not actually be the best account for you, so please do your own research.

Provider	Interest rate (AER)	Notice period	Minimum and maximum deposit
Allica Bank	5.01% (variable)	180–day notice	£20,000 - £2 million
United Trust Bank	5.00% (variable)	200-day notice	£5,000 - £5 million
DF Capital Bank	4.76% (variable)	90-day notice	£20,000 - £250,000
Allica Bank	4.75% (variable)	95-day notice	£20,000 - £2 million
Redwood Bank	4.60% (variable)	95-day notice	£10,000 - £1 million
Close Brothers* * (Must have <250 employees and <£40 million in annual turnover/assets)	4.55% (variable)	95-day notice	£25,000 and £1 million
United Trust Bank	4.30% (variable)	100-day notice	£5,000 - £5 million
Redwood Bank	4.10% (variable)	35-day notice	£10,000 - £1 million
United Trust Bank	4.10% (variable)	40-day notice	£5,000 - £5 million
Cambridge & Counties Bank	4.05% (variable)	95-day notice	£10,000 - £3 million
NatWest	3.75% (variable) 3.49% (variable) from 27 January 2025	95-day notice	N/A
Lloyds Group (Bank of Scotland, Halifax, Lloyds Bank)	3.62% (variable)	95-day notice	£0 - £50 million
Cambridge & Counties Bank	3.55% (variable)	31-day notice	N/A

 

Rates correct as at 27 November 2024, but please check rates and eligibility with the provider.

The best fixed-term business savings accounts available in the UK

Fixed-rate, fixed-term, business bond - there are a few names for what is, ultimately, the same thing across banks. You deposit your money with the bank and can’t access it again until the agreed term is complete. In exchange, you get a guaranteed interest rate.

We’ve split the list up between short-term accounts (shorter than one year) and longer-term accounts (one year and over). This is just to keep things readable for you, as there are lots of accounts to get through!

11 shorter-term (under one year) accounts

If you’re a few months away from needing a certain tranche of your money, a short-term fixed rate account can be a great choice.

You’ll know exactly what you’ll get back at the end of the term and can rest easy knowing your money is working hard for you in the background.

Provider	Interest rate (AER)	Fixed period	Minimum and maximum deposit
Allica Bank	4.50%	Six month fixed-rate	£20,000 - £2 million
United Trust Bank	4.45%	Three month bond	£5,000 - £5 million
Reliance Bank	4.45%	Six month fixed term	£1,000 - £500,00
United Trust Bank	4.45%	Six month bond	£5,000 - £5 million
Cambridge & Counties Bank	4.35%	Six month business bond	£10,000 - £5 million
iFAST Bank	4.20%	Three month fixed term	£10,000 - £85,000
iFAST Bank	4.15%	Six month fixed term	£10,000 - £85,000
Recognise Bank	4.10%	Six month fixed rate	£1,000 to £250,000* * (Only limited companies and LLPs can deposit over £85,000.)
Virgin Money	3.38%	Six month term deposit	£5,000 - £25 million
Lloyds Group (Bank of Scotland, Halifax, Lloyds Bank)	2.93%	Six month fixed rate	£10,000 - £5 million
Lloyds Group (Bank of Scotland, Halifax, Lloyds Bank)	2.66%	Nine month fixed rate	£10,000 - £5 million

Rates correct as at 19 November 2024, but please check rates and eligibility with the provider.

 

13 medium-term (one to two years) accounts

If you can squirrel away some funds for over a year, there are good accounts out there for you.

Some commentators predict we’ve hit peak base rate, so it’s possible that we could see further reductions in the Bank of England base rate, which often then carries over to savings accounts offered by banks. Opening a longer-term account now could secure you higher returns than in six months, although there are no guarantees.

Provider	Interest rate (AER)	Fixed period	Minimum and maximum deposit
Allica Bank	4.61%	12 month fixed-rate	£20,000 - £2 million
United Trust Bank	4.60%	15 month bond	£5,000 - £5 million
United Trust Bank	4.60%	One year bond	£5,000 - £5 million
Shawbrook Bank	4.56%	One year business bond	£5,000 - £2 million
Hampshire Trust Bank	4.55%	One year fixed saver	£5,000 - £750,000
United Trust Bank	4.45%	18 month bond	£5,000 - £5 million
Reliance Bank	4.40%	One year fixed rate	£1,000 - £2 million
Cambridge & Counties Bank	4.35%	One year business bond	£10,000 - £5 million
Virgin Money	4.35%	One year fixed rate	£5,000 - £2 million
Recognise Bank	4.25%	One year fixed rate	£1,000 to £250,000* * (Only limited companies and LLPs can deposit over £85,000.)
Virgin Money	4.15%	12 month term deposit	£5,000 - £25 million
Virgin Money	3.90%	18 month term deposit	£5,000 - £25 million
Santander	2.75%	One year fixed-term	£10,000 - £5 million
Lloyds Group (Bank of Scotland,  Halifax, Lloyds Bank)	2.65%	12 month fixed rate	£10,000 - £5 million

 

Rates correct as at 27 November 2024, but please check rates and eligibility with the provider.

 

10 longer-term (two years or more) accounts

If you’re in a position to save some money for an even longer timeframe, then you’ll be pleased to know that some banks offer fixed accounts up to five years.

Provider	Interest rate (AER)	Fixed period	Minimum and maximum deposit
United Trust Bank	4.30%	Two year bond	£5,000 - £5 million
Cambridge & Counties Bank	4.25%	Two year business bond	£10,000 - £5 million
Hampshire Trust Bank	4.22%	Two year fixed saver	£5,000 - £750,000
Shawbrook Bank	4.21%	Two year business bond	£5,000 - £2 million
Hampshire Trust Bank	4.16%	Three year fixed saver	£5,000 - £750,000
United Trust Bank	4.10%	Five year bond	£5,000 - £5 million
Reliance Bank	4.05%	Two year fixed rate	£1,000 - £2 million
Cambridge & Counties Bank	3.90%	Five year business bond	£10,000 - £5 million
Virgin Money	3.50%	Two year fixed rate	£5,000 - £2 million
Virgin Money	3.50%	24 month term deposit	£5,000 - £25 million

 

Rates correct as at 27 November 2024, but please check rates and eligibility with the provider.

Key benefits of a business savings account

There’s one obvious benefit to business savings accounts: they get your money to earn more money!

A business with £1 million in savings could earn a full-time employee’s salary in interest every year. Smaller businesses with £10,000 in savings would still earn hundreds of pounds that could go toward paying bills or bumping up an emergency fund.

Beyond the obvious high interest rates, there are more benefits to dedicated savings accounts.

You’ll get a clear separation of your money. You might use a savings account or accounts for your annual tax reserves, operating runway or emergency fund. Ring-fencing this money makes it easier to track and manage. You can’t put a price on peace of mind.

There’s also the added security of separating your money into multiple accounts and, ideally, institutions to maximise your protection under the FSCS.

 

How to open a business savings account

Some business savings accounts operate as standalone products and others need you to have a current account with the bank first.

The process differs for each, but tends to be a relatively quick process regardless.

 

Savings accounts that need a current account

If you’re opening a savings account that’s only accessible to current account holders, you’ll need to apply for the current account first. We’ve written a guide explaining how to open a current account, if you need any help with that process.

From there, the process is usually quite simple. For digital banks, it can be as simple as pressing a few buttons to submit your application and open the account. For high-street banks, you’ll fill out one or two forms or complete the process in a phone call.

 

Savings accounts that don’t need a current account

Some banks and financial institutions will allow new customers to open savings accounts directly. Allica Bank is one of them, with our business savings accounts open to customers new and old.

Taking Allica’s savings accounts as an example: to apply, you’ll need to complete our online form. It takes about 15 minutes.

You’ll need to share some administrative information (such as your business’ trading name and address), details of your business activity (from your industry to your turnover) and the details of the current account from which you’ll make your initial deposit.

We’ll then get in touch with you to finish setting up the account.

 

Are business savings accounts protected?

Yes, your business savings are protected under the Financial Services Compensation Scheme up to £85,000 per financial institution.

To reiterate: the £85,000 limit is per institution, not account. So, if you have £100,000 deposited in a current account and savings account at the same bank, only £85,000 of it will be compensated in the event of a failure.

 

Why use Allica for your business savings account

We like to think that Allica is one of the best options on the market, for both flexibility and interest rates.

Our savings products are available to Business Rewards Account customers and entirely new customers alike. You can choose anything from instant access to longer, fixed-term accounts.

Add to that variety our UK support team, intuitive app and market-leading interest rates and you get the Allica Bank savings experience.

Apply for one of our savings accounts.

 

Saving is always in style

Whether you’ve hit a windfall or built your business by looking after the pennies, your surplus cash can do great things for you.

£500,000 in a 4.08% AER (variable) easy access account will earn you £20,400 over the course of a year. There aren’t many business owners who’d turn that down.

To make the best choice for your business, you’ll need to do your own research. There are options out there that give you full flexibility and others that trade easy access for higher, guaranteed interest rates.

If Allica Bank sounds like the right fit for you, you can start the process and open a savings account right now.

Disclaimer: This is information – not financial advice or recommendation

The content and materials featured in 'Comparing the best business savings accounts in 2024' are for your information and education only, and are not intended to take into consideration any particular recipients’ financial situation. The product details and interest rates referred to are correct at the time of writing.

The information does not constitute financial advice or recommendation and should not be considered as such. Allica Bank will not accept any liability for any loss, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information.