Depending on the nature of your small business, there are different types of business savings accounts that you might be interested in. Here are some examples:
Instant access accounts
These accounts generally provide customers with the opportunity to access their funds without having to give prior notice. Therefore, an instant access account may be highly useful for customers who feel they may need to access their savings very quickly.
Notice accounts
These accounts will still provide customers the chance to make withdrawals from their savings; but it should be remembered that the provider will require prior notice. Compulsory notice periods tend to vary depending on the business savings account that was selected. However generally, accounts with longer notice periods will tend to offer higher interest rates.
Fixed rate accounts
These are sometimes referred to as deposit accounts. Typically, a fixed rate account will provide customers with an interest rate that will remain the same for the duration of a specificed period. Fixed rate accounts will not generally permit withdrawals within this period, or if they do, the customer may be expected to pay a penalty, or to forfeit a certain amount of interest. For this reason, these accounts are generally best suited to customers who can afford to lock away their money for a set duration without accessing it.
Businesses might also want to consider structured deposit plans, which are capital protected and offer higher potential returns depending on the performance of an index such as the FTSE 100. See below to find out more.