Best business savings accounts

Superscript
21 July 2021
5 minute read

Happy with your business bank account, but looking to stash your surplus cash? It's time to get a business savings account. They let you deposit money, earn interest, and – if you’ve opted for an easy access account – withdraw funds almost instantly.

From the Starling savings-account-which-isn’t-a-savings-account to Aldermore’s more standard set-up, compare our top five, all offering instant access to your savings.

Why is a business savings account a good idea?

Just like business insurance, a business savings account is something all business owners should think about getting. Not only can it be a saviour if you had a financial emergency, but they usually have higher interest rates than business current accounts, giving you a better rate of return on your extra business earnings.

On top of that, if you have a limited company, you’ll need to keep your business’ savings separate from your personal finances – not doing so could result in tax implications.

Why are we focusing on easy access accounts?

In reality, you can choose between three of four business savings account types when setting up. These are instant/easy access accounts, notice accounts, business savings bonds and a few other variations.

For our top five best business savings accounts, we’ve chosen to focus on easy access accounts. This is mainly because a lot of small business owners usually want quick, flexible access to their money, letting them pick up a new piece of kit or hire a new employee if they want to.

When it comes to savings, it’s ok to start small

Challenger, non-traditional savings options are popping the incumbent bank bubble, so while Starling Bank, Revolut and Tandem aren’t strictly doing business savings accounts, they give you the option to save in a different way, respecting different priorities and habits.

We’re approaching it as business savings options, rather than business savings accounts. If you haven’t got the required £1,000 handy to open a savings account with Aldermore or Shawbrook, you could tap into Revolut, Starling or Tandem for a nimbler, app-based option.

Here they are, in no particular order:

Top 5: instant/easy access business savings accounts

best business savings accounts

*AER stands for Annual Equivalent Rate, and shows the interest rate if it was paid and compounded once a year.

**FSCS stands for the Financial Services Compensation Scheme, which typically protects up to £85,000 of your money if the authorised financial firm that you are saving your money with fails. You can read more about how Revolut is protected by a partner here.

Aldermore Bank – Easy Access Account Issue 8

Aldermore savings account options come out top in lots of business comparison tables, and with good reason. They’ve earned fantastic customer ratings; provide clear, no frills info with their products and offer a decent 0.5% AER* on their easy access business savings account.

Show me the interest

  • 0.5% AER*
  • Paid monthly or annually

We’ve listed the easy access account. But if you’re not bothered about withdrawing cash and business savings account rates are your top priority, you might be interested in their fixed rate options, which offer up to 0.85% AER*.

Aldermore’s best feature

They’re award-winning for a reason. We like the straightforward nature of this product, coupled with competitive interest rates and real flexibility – they’re one of the few more established banks who’re able to provide all three.

Shawbrook Bank – Easy Access Business Account Issue 7

Shawbrook offer several business savings accounts, from the 1% AER* 2-year fixed-rate option to other fixed rate and 45- or 100-day notice accounts. These all come with higher interest rates than the easy access saver account featured here, but aren’t as flexible.

Show me the interest

  • 0.5% AER*
  • Paid monthly or annually

The minimum account withdrawal is £500, so this account might suit you better if you’ll be in the habit of moving larger chunks of cash around. And just like the Aldermore savings account featured here, there’s a £1,000 minimum opening balance.

Shawbrook’s best feature

For us, it’s the award-winning business savings account rates. Shawbrook focus on providing a table of options for businesses big and small, so you can lock your cash away with a higher rate fixed saver, or enjoy their competitive 0.5% AER* easy access account.

Revolut – Saving Vaults

This isn’t strictly a business savings account, but why split hairs? Sole traders looking to save up cash may be tempted to upgrade and bag the 0.65% AER* available on Revolut’s nifty Saving Vaults feature. Especially when it comes with daily interest payments and instant access.

Show me the interest

  • 0.65% AER* (upgrade-only)
  • Paid daily

You’ll need to upgrade to start unlocking Revolut’s interest rates, but plans range from £2.99/month to £12.99/month and come with seriously covetable features beside the interest rate.

Best business bank accounts feature

Banking with Revolut is a completely different experience. Not for everybody – thousands of businesses will want a no frills easy-access savings account – but if you’re looking to breathe new life into your financial habits and saving, Vaults could be for you. The best bit for us? The daily interest payment promise.

Starling Bank – Saving Spaces

Starling Bank featured in our best business bank accounts round-up, and are smashing it right now with their super-flexible, forward-thinking products. Be aware though, this is not a high interest business savings account. With a 0.05% AER*, it’s more of a piggy bank that sits alongside your account. A really clever piggy bank, though.

Show me the interest

  • 0.05% AER* on current account balances up to £85,000

As Starling says, the Spaces feature is really visual. You can see at a glance how your savings are doing and you’ll benefit from their fantastic app-based functionality. Not the best business savings rates, though.

Starling’s best feature

The app and super-handy Round Ups. It’s all about financial habits and hygiene here, making saving part of your everyday life. The interest is much lower, but the nudge factor is higher – you’ll see your money every day and have more incentive to grow it.

Tandem – Green Instant Access Saver

If sustainability matters to you and you’re keen to put your money where your green creds are, a 0.4% AER* on Tandem’s Green Instant Access Saver will definitely spark interest.

Show me the interest

  • 0.4% AER*
  • Paid monthly or annually

Just watch that customer satisfaction score. We used Trustpilot to check each contender out and Tandem have struggled recently with some reviews.

Tandem’s best feature

Green appeal. Whether it’s your own priorities or your business is focused (and known for) it’s green and sustainability principles, being able to save, access cash instantly, enjoy a competitive rate and put the environment first is a complete USP. We’re excited to see how this option grows and develops.

Financial advice note

The information contained in this article is provided for informational purposes only and should not be construed as financial advice on any matter. You should not rely on the information published in this article. The information in this article does not take account of individual circumstances and may not reflect recent changes in the law. Do not act or refrain from acting upon this information without seeking professional financial advice.

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