Business savings accounts are literally what they say on the tin. These accounts are used to put money made from your business in one place, with these accounts often having a better interest rate than standard business current accounts. Having business savings sat in a savings account means it is earning money through interest, as opposed to almost nothing in a current account. So that’s let to many businesses wondering which is the best business savings account. Well, Direct365 have compiled the data to show you the most competitive offerings when it comes to business savings accounts. Follow us as we explain the what’s, why’s and where’s of business banking.
What type of business should get a business savings account?
This is the first place to begin on your journey to deciding whether you should get a shiny new savings account. There really is no business that shouldn’t have a business savings account, especially if you’re looking to leave money in your bank account. This way, your money can be earning a little extra while you’re adding to the pot.
Some banks do have different accounts for different types of organisations – something we’ll touch on below – but most choices on business accounts will be based on how much money you will be depositing, how often and how much access you need to your money.
What are some of the most common types of business accounts?
There are three common types of account, of which they vary in benefit from bank to bank. These accounts are:
Instant Accounts: These accounts operate in a similar way to standard bank accounts in that they can be accessed any time and any minimum level of deposit needed to open the account.
Fixed Term Account: A fixed term account allows you to choose the level of interest your account has over a fixed period of time. These timings range from 3 months to 2 years. The longer the time period, the higher the interest, in theory.
Notice Accounts: Notice accounts are bank accounts that require you to give a certain amount of notice before you can take money out of your account. These accounts often have higher interest rates and are often only available to businesses with larger amounts of money deposited and stored.
What are the best business savings accounts?
The answer to that question does all depend on the size of business you are, but we’ve broken down some of the core offerings to give you an insight into what is available.
Virgin Money
The Virgin Money business account offerings seem really positive. With easy digital access to all accounts – although some with limited function – it seems like a great business to bank with. Add in the bonuses such as digital cheque depositing and integration of business essential services like Quickbooks, and you’ve got a really neat bank.
Instant Access Accounts:
Cash Management Account
- Open an account from as little as a £1 deposit
- No maximum balance
- 1% interest rate
- Limited online account management
Access Savings Account
- 2.27% interest
- Full online account management
- Open an account with as little as £1
- Maximum level of £2 million
- No fees
Notice Accounts:
30-Day Business Notice
- 2.02% interest rare
- £100,000 minimum deposit
- Monthly interest
- Limited online management
- 30-day notice period
65-Day Business Notice
- 2.22% interest rate
- Minimum deposit of £100,000
- Monthly interest
- Limited online management
Other accounts include a 95-day notice at 3.04% interest and a 120 day notice with 3.54% interest.
Lloyds
Lloyds have a number of options that are flexible and wide ranging. Here are their main offerings:
Instant Access Account
- £1 minimum deposit
- 0.90% interest rate on savings up to £250,000
- Takes 10 minutes to set up
Fixed Term Account
- Choose between 3 months and 2 years fixed term rate
- Deposit of £10,000 or more
- Same interest for entire term
- Takes 10 mins to apply
Notice Account
32 Days’ Notice Account
- No set term
- 32-days notice to withdraw your money
- 2.30% interest
95 Days’ Notice Account
- Only available for businesses holding between £3 – £25 million
- No set term
- 95 days notice required
- 2.65% interest
Metro Bank
Metro Bank, unlike other banks, has different services based on the type of organisation you are. From business, charities and community groups, there are different services tailored to all.
Instant Access
- 0.85% interest rate
- No hidden fees
- Full control over cash
Fixed Term Account
- Interest up to 3.71% (starting at 2.06%)
- Minimum deposit £5000
- A range of terms from 3 months to 2 years
- Interest monthly or annually
Notice Account
- 35 day notice: 1.75%
- 60 day notice: 1.85%
- 90 day notice: £1.95
- All with as many deposit withdrawals as you like
Santander
Business Everyday Saver
- Access via online portal, smart phone or via an ATM
- Minimum deposit of £1 to open account
- 0.85% interest rate
Business Rewards Saver
- Minimum opening deposit of £1
- Access via phone, online or ATM
- Low withdrawal interest rate
Fixed Rate Business Account
- Save up to £5 million
- 1.40% 1-year fixed rate
A Summary of the Best Business Savings Account
There are a lot of options out there, but there’s one clear winner for us out of the options above. Virgin Money has a vast range of accounts, but it does all depend on what you’re looking for and the size of your business.
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