Business Savings Accounts Information
Business Savings accounts are provided by regulated banks and building societies in the UK and come in various forms ranging from no notice accounts to short term notice accounts typically 7 day, 30 day, 60 day or 90 day through to longer term savings accounts( often called business fixed rate bonds) which typically range from 12 months to 60 months notice. With a business savings account you can benefit from interest being added either monthly, quarterly or annually depending on the Provider terms.
See below for a guide to business savings accounts for UK Companies.
Type of Business Savings Account |
Business Savings Account Features |
Business Savings Account Access |
Business Savings No Notice Accounts |
Will normally offer higher interest than what can be obtained on a business current account. |
Instant access or easy access |
Business Savings Notice Accounts |
With these types of business savings account you have to give notice before you can take money out e.g. 7, 30, 60 and 90 days. |
An interest penalty will often be applied if notice is not given. |
Business Savings Fixed Rate Bonds |
Ranging from 1, 2, 3, 4 or 5 year saving terms with a minimum deposit. |
Designed for money to be held for full term. Early withdrawal may result in a penalty. |
Business Structured Deposit Plans |
Usually 3, 4 or 5 year saving terms with a minimum deposit. |
Early withdrawal may result in a penalty. Designed for money to be held for full term |
Things to look out for when choosing a Business Savings Account:
There is a wide range of business savings account deals to choose from so we have highlighted some of the features to look out for:
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Minimum business savings deposits – some business savings accounts require a minimum level of funding
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Business Savings Access – Depending on the business savings account access will be through the branch, online telephone or post. Some accounts are only available to businesses based in a local areas or regions. Restrictions may apply depending on business turnover.
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Business Savings Interest – some savings account providers will pay interest monthly and others quarterly or annually.
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Business Savings Withdrawal Penalties - Generally speaking the longer you can lock your surplus business cash away the better the interest rate you can expect to get. If you need acces to your money at short notice interest penalties may apply. Some providers will alllow a limited number of penalty free withdrawals a year.
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Savings Protection for Businesses - The Financial Services Compensation Scheme (FSCS) was mainly set up to protect individuals. However some businesses are covered. As an indicative guide to qualify for the scheme a business must meet two of the following criteria to qualify for the FSCS depositer scheme; (a) turnover no more than £6.5 million (b) Balance sheet not more than £3.26 million (c) Total number of employees no more than 50. For further information see the FSCS website.
With interest rates at the time of writing at an all-time low the impact in real terms of inflation on your money is not to be underestimated in eroding the buying power of a company's cash. Use our business savings comparison tables to ensure you get a good savings rate.