A business savings bond is one type of business savings account deal that you may wish to consider investing in. These tend to work in the following way:
- Your business invests a certain amount of money for a fixed term (usually from 1-5 years)
- The invested funds accrue interest over this period at a fixed rate
- You are not permitted to withdraw any funds from this bond, and you may not be allowed to add funds either
- Interest is paid to your account either monthly, annually or upon maturity
- Upon maturity, you may have the option to reinvest your savings for a further fixed period
Many businesses are investing in fixed rate savings bonds, most likely due to the competitive interest rates, which tend to be higher than instant access savings accounts. In addition, bonds with longer fixed periods usually offer the highest interest rates. These tend to be best for businesses that are not likely to need to dip into their savings within the fixed term.
There are a number of banks and building societies that may offer the right business savings bonds for you. The comparison table contains information about several of the latest deals that we've selected. Click on the links to individual banks or building societies to find out more about them.
If you are not sure that a business savings bond would be right for your business, you might like to consider the following types of business savings accounts:
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Instant access – would allow you to access your funds without giving prior notice
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Notice accounts – would allow you to withdraw funds if you give the required notice
Whatever kind of business savings account deal you are after, the product comparison table we have provided should help you find a suitable one.