Let’s be honest, the return on business saving accounts have been awful since the 2008 financial crisis led the BOE to slash interest rates to just 0.5% in March 2009. However, thanks to competitive, challenger banks entering the market, there are some business savings accounts with relatively attractive interest rates, if you know where to look. 

With rates varying between 0.15% to 2.1% per year, spending a little time comparing these business savings accounts may be the difference in saving hundreds of pounds over the course of the year, and go someway to offset the negative effect of inflation on your hard earned cash.

Note: All deposits in the banks listed are protected by the Financial Services Compensation Scheme (FSCS), up to £85,000 per depositor per bank unless noted otherwise. This means if the bank fails, your deposit would be repaid within 20 working days.

  • Business Savings Accounts
NameMin BalanceMax BalanceInterest Rate Range 
Cambridge Building Society£1,000£2,500,0000.25%-1.10% 
Shawbrook Bank£5,000£2,000,0001.00%-1.25% 
Cumberland Building Society£10,000Unspecified0.45%-1.05% 
Hampshire Trust Bank£5,000£750,0001.25%-2.10% 
Yorkshire BankNo minimumUnspecified0.2%-1.80% 
Masthaven£5,000£500,0001.8%-2.1% 
State Bank of India (UK)£10,000£5,000,0001%-1.75% 
Virgin Money£1£2,000,0001.01%-1.6% 
Nationwide£5,000£10,000,0000.65%-1.25% 
Aldermore£1,000£1,000,0001.00%-1.65% 
Metro BankNo minimumUnspecified0.3%-1.65% 
TSBNo minimum£5,000,0000.15%-1% 
Santander£1No max on most accounts0.1%-0.7% 
Charity Bank£1,000Unspecified0.65%-1.5% 
The Co-operative BankNo minimumUnspecified0.5%-1% 
United Trust Bank£5,000£1,000,0001.5%-1.8% 
Cynergy Bank£10,000£1,000,0001.35%-1.65% 
Kent Reliance£1,000£1,000,0000.90%

Note: the figures included in this table come directly from the company’s website and were correct at the time of writing (November 2019). However, these rates are frequently modified so do check the company’s website and terms carefully before making a decision.

  • Cambridge Building Society has 3 business saving accounts: a 100 days notice savings account paying 1.10%, an instant access account returning 0.25%, and a 0.25% instant access account for councils.
  • Money can be withdrawn twice a month for their instant access accounts, and with 100 days notice on their notice savings account.
  • Cambridge Building Society was awarded the MoneyAge Awards Building Society of the Year in 2019, specifically for its customer service.

Cambridge Building Society was founded in 1850, to deliver services to the Cambridge community. Since then, its offer has extended to cover the whole of the UK, plus a range of business and personal banking products.

Whatever business you’re in, Cambridge Building Society likely has a savings account which will work for you:

  • The Notice Business Saver account offers 1.10% interest on balances over £10,000. It is available for sole proprietors, partnerships, limited companies, public limited companies, registered charities, housing associations, clubs and associations.
  • The Business Saver account offers 0.25% interest on balances over £1,000. It is available for Sole Proprietors, Partnerships, Limited Companies, Public Limited Companies, registered Charities, Housing Associations, Clubs and Associations.
  • The Council Saver account offers 0.25% interest on balances over £1,000, but is available exclusively for Parish and Town Councils.

Customers can open accounts in a branch or via post, and can deposit a maximum of £2.5 million. However, as a relatively small building society, Cambridge Building Society hasn’t invested in online account management. Instead, there’s phone and email support plus a well-defined complaints procedure.

  • Shawbrook offers 100-day notice accounts and fixed-rate bonds, with returns between 1.00%-1.25%.
  • Money can be withdrawn by submitting a withdrawal request. This can be submitted online, by post or by phone. An account must be nominated as a withdrawal account, transfers can not be made to a third party or an unidentified accounts.
  • This bank does not offer savings products to Charities or Trusts.

Shawbrook Bank was established in 2011, specifically to serve SMEs and individuals in the UK. In 2018, the bank held over £5 billion in customer deposits. Shawbrook Bank has received an impressive amount of awards for its customer service, such as the Feefo Gold Trusted Service 2019 for customer service and the Savings Champion 2018 award.

Thing is, Shawbrook’s accounts are only suitable if you don’t need instant access — the 2 options available here are a notice account and a fixed-rate bond.

  • The Notice Accounts for Business offers a decent return if you give 100 days notice before withdrawing funds. The current issue (12) earns 1.00% annually on balances between £5,000 and £2,000,000.
  • The Fixed Rate Business Savings Bonds are regularly issued depending on the lending needs of Shawbrook Bank. The current issue (9) offers 1.25% AER on balances between £5,000 and £2,000,000 if you keep it locked for 1 year.

It’s also worth noting that, when opening your account, you must nominate a seperate account for all future withdrawals to be sent to. This can only be changed by post with sufficient evidence that you, or your business, are the account owner.

In terms of eligibility, Shawbrook’s savings accounts are available to companies, partnerships and shareholding companies registered in the UK, who are only liable for UK tax. These accounts are not available to charities or trusts.

  • Cumberland Building Society offers a range of business savings accounts, including instant access, notice accounts and fixed-term savings.
  • The eSavings instant access is one of the most competitive we’ve seen, returning 1% interest annually, but only if you are an existing Cumberland Building Society business internet banking customer.
  • Subject to account terms, withdrawals can be made in cash (£500 daily) or by cheque (£99,999.99 daily). Withdrawals cannot be made via direct debit, standing order, regular internal transfer or faster payments.

Cumberland Building Society was founded in 1850 in Cumbria and has a branch operating network covering Cumbria, South West Scotland, West Northumberland and North Lancashire.

It currently offers 4 products suitable for almost all business types:

  • An instant access product (issue 2), giving 0.45% interest on balances over £100.
  • An eSavings product (issue 4), giving 1% on all balances over £1 but under £1,000,000. This account is available to open for Cumberland Building Society business current account customers who live in the branch operating area. A notable exception is that this account is not available for schools.
  • A 40-day notice product (issue 6), offering 0.55% interest on balances over £10,000 but under £1,000,000. This is not available for schools and only 1 account is allowed per business.
  • A 2 year fixed rate product (issue 2), offering 1.05% interest on balances over £5,000 but under £1,000,000. You cannot withdraw, transfer or close the account before the 2 years is completed.

Despite being a smaller building society, Cumberland Building Society does offer internet banking, a mobile banking app and telephone support (8am-8pm on weekdays and until 4pm on weekends). Reviewers on Feefo praise Cumberland Building Society for its customer service and friendly team members, giving the bank a high overall score of 4.8/5.

  • Hampshire Trust Bank offers both fixed rate savings, returning between 1.71% and 2.1% depending on term (see below for a break down of the 5 business saving accounts offered), and variable rate savings account with a 90-day term.
  • Applications can be completed online or by post, but there is no online access to business savings accounts.
  • An account must be nominated as a withdrawal account — transfers cannot be made to a third party or an unidentified accounts.
  • Awarded the Feefo Gold Trusted Service Award in 2019, specifically for its customer service.

Hampshire Trust Bank was founded in 1977 but was relaunched in 2014 with a focus on more straightforward products.

These business savings accounts are unique in this review, as they can be opened by virtually all organisations, including sole traders, limited companies, PLCs, LLPs, partnerships, charities registered in the UK, clubs, parish councils, councils, schools, religious organisations, small financial institutions, credit unions and trusts.

Hampshire Trust Bank currently offers 5 business saving accounts on balances between £5,000 and £750,000 (withdrawals are not allowed until the term is completed):

  • 3 Year Business Bond (Issue 16) paying 2.1%.
  • 2 Year Business Bond (Issue 25) paying 1.81%.
  • 1 Year Business Bond (Issue 30) paying 1.71%.
  • 90 Day Business Notice Account (Issue 16) paying 1.46%.
  • 90 Day Business Notice Account (Issue 4) paying 1.25%.

According to Feefo, their customer service rating is an impressive 4.6/5, with reviewers speaking highly of customer service standards and the high interest on savings.

  • Yorkshire Bank has instant access accounts, paying 0.2%-0.25%, term deposit accounts paying 0.35%-1.80% and notice accounts paying 0.2%-1.25% depending on the size of the deposit and notice term.
  • Customers should review the terms carefully before signing up, as Yorkshire’s offering is somewhat complicated with varying account types for different types of businesses and organisations.
  • Yorkshire Bank was ranked 5th in an independent CMA survey of business banking providers, with 60% of SMEs likely to recommend their business current account to other SMEs.

Established in 1849, Yorkshire Bank has had a tumultuous history, being acquired by the National Australia Bank in 1990 then by CYBG in 2018. As we write this review, Yorkshire Bank is rebranding to Virgin Money and it is unclear whether this will affect the products available.

Yorkshire Bank currently offers a range of products, including:

  • A Business Cash Management account paying between 0.2%-0.25% AER, which provides instant access to savings and a dedicated relationship manager. Charities can make use of a specialised product, known as a Charity Instant Access account.
  • 3 Term deposit accounts (Business, Treasury and Charity) with various interest rates depending on the length duration of saving. For example the Business Term Deposit offers an interest rate of 0.30% for 1 month and 1.80% for 24 months. A higher rate of 1.46% on 18 month term deposits is also offered but this is only for maturing customers.
  • 5 Notice accounts with notice periods of 15/30/65/95/120 days paying from 0.20% to 1.25%. Withdrawals are not permitted during the notice period unless the sole trader or a partner in the business dies. See their latest rates table here.

If you prefer to handle your banking digitally, then Yorkshire Bank probably isn’t for you. At the moment, almost all dedicated business banking support is done via telephone. Whether this will change with the rebrand remains to be seen.

  • Masthaven has only fixed-rate savings accounts available, returning from 1.8% to 2.1% over 1 to 5 years.
  • A business can open a maximum of 4 business accounts with up to a combined value of £1 million.
  • Named the UK’s Most Innovative Digital Retail Bank for 2018 and 2019 (CFI) and 2019’s Savings Account Provider of the Year (MoneyAge).
  • Accounts can be opened online and telephone support is available.

Masthaven was founded in 2004 and manages £750 million in assets. The bank only offers fixed-rate saving products for businesses on balances between £5,000-£500,000, including:

  • 1 year fixed returning 1.8% in interest.
  • 2 years fixed returning 1.9% in interest.
  • 3 years fixed returning 2.0% in interest.
  • 5 years fixed returning 2.1% in interest.

Overall, customers seem to like Masthaven’s fresh, digital approach to banking and high quality customer service, scoring it 4.6/5 on Feefo. Customers should also be aware that these accounts are only available for businesses where all shareholders permanently reside in the UK.

  • State Bank of India offers both instant access, paying 1% interest on savings accounts with more than £10,000 to £5 million, and a fixed deposit account paying up to 1.50% on deposits of £10,000 to £250,000.
  • However, these accounts are both only available for micro-enterprises in the European Economic Area (EEA). This is defined by SBI as businesses with fewer than 10 employees and a turnover or annual balance sheet that does not exceed €2 million.

The State Bank of India (SBI) was founded in 1806 is the largest bank in India. It has since expanded to offer banking across the world.

SBI provides business savings accounts for micro-enterprises, defined as businesses with fewer than 10 employees and a turnover or annual balance sheet that does not exceed €2 million:

  • The Business Savings Account offers 1% on GBP balances above £10,000 and offers instant access to funds. Charges apply if your balance drops before £10,000.
  • The Business Fixed Deposit offers 1.4% for savings for 1 year and 1.5% for 2-5 years.
  • The Business Loyalty Fixed Deposit gives you more interest for every year you leave the deposit in the account, paying 1.75% after five years on balances between £10,000 and £250,000.

If you look online, you’ll see that SBI’s customer reviews are low — scoring just 1.9/5 on TrustPilot. However, with such high interest rates it’s certainly a savings account worth mentioning.

  • Virgin Money offers customers both instant access savings, paying 1.01%, and a 1 year fixed account paying 1.75%. This is paid on balances of between £1 and £2 million.
  • There are no fees or charges on the accounts.
  • As a Virgin Money Business, you’ll get access to business lounges in London, Manchester, Sheffield, Norwich, Cardiff, Glasgow and Edinburgh. These include complimentary refreshments, free Wi-Fi, newspapers, magazines, TVs and iPads.

Virgin Money has over 4 million customers in the UK, expanding rapidly due to its purchase of the ‘good parts’ of the failed Northern Rock bank. In 2018, Virgin Money UK was sold to CYBG.

As a result of this acquisition, Yorkshire Bank and Clydesdale Bank will both rebrand to Virgin Money.

These accounts are available for business with under 250 employees and a total balance sheet of less than £36.5 million. They are not available for UK pension schemes, UK public authorities, charities, church bodies and places of worship, trusts, foundations or clubs and societies.

Your business is also not eligible if you:

  • Operate within sanctioned countries: Iran, Syria, North Korea, North Sudan, South Sudan or Crimea.
  • Have an ownership structure of more than three tiers or use bearer shares within the ownership structure.
  • Intend to use the account as a ‘Client Account’, used for holding money that belongs to your client.
  • Nationwide business customers can choose from an instant access account paying up to 0.65%, a notice account paying up to 1.25% or a 1 year fixed account, paying 0.75%.
  • The bank also offers a 45-day members savers rates, which rewards businesses with an extra 0.15% interest if one of the ‘business officials’ holds a Nationwide current account, mortgage or personal savings account.
  • These accounts are available for businesses with less than £10 million in turnover, but they do offer corporate savings for companies over this threshold.
  • Withdrawals can be requested by email, post or fax.
  • No fees or charges on business savings.

Nationwide is the largest building society in the world with 15 million members. As one of the largest building societies in this review, we had high hopes… but its interest rates are far below competitors.

There are 6 business savings accounts from Nationwide, available for balances between £5,000 and £10 million:

  • An Instant Saver, paying 0.65%.
  • A 45-day Saver, paying 0.85%.
  • Members 45-day Saver, paying 1.00%.
  • A 95-day Saver, paying 1.10%.
  • A 12-day Saver, paying 1.25%.
  • A 1 year Fixed Term Saver, paying 0.75%.

Nationwide has recently been commended at the Business Moneyfacts Awards 2019, as one of the best variable rate deposit account providers. Interestingly, the bank also donates 1% of each year’s pre-tax profits to charity, community and environmental activities.

  • Each of Aldermore’s business savings accounts advertise competitive interest rates. Its Easy Access Account pays 1.00% and customers can choose from a number of Fixed Term Accounts, paying up to 1.65% for a 1-year term.
  • The accounts are for UK businesses and all directors and beneficial owners must be UK tax residents. Specifically, US persons are not allowed to hold these accounts.
  • The maximum total investment you can hold with Aldermore in all of your accounts is £10 million.

Aldermore was founded in 2009 to provide financial services to small and medium-sized businesses. It was acquired in 2018 by South African banking giant, First Rand, making it part of one of the world’s largest banking groups.

Here, the business savings accounts are refreshingly simple: offering competitive interest rates on balances between £1,000 to £1 million. If your balance exceeds £1 million, Aldermore also offers corporate savings accounts.

At present, the 4 savings accounts available to businesses include:

  • Easy Access Account (Issue 7) – offering 1.00% interest.
  • Fixed-Rate Savings 1 Year – offering 1.65% interest.
  • Fixed-Rate Savings 1 Year with Access – offering 1.15% interest.
  • Fixed-Rate Savings 6 Months – offering 1.15% interest.

The fixed with access product is unique as it allows up to 25% of the savings to be withdrawn without penalty.

  • Metro has a full range of business savings accounts, with an instant access account paying 0.30%, a fixed-term account paying between 0.35% and 1.60% on balances over £5,000 and a notice account paying up to 1.05%.
  • Accounts can only be opened in-branch, though Metro branches are conveniently open 7 days a week with late opening hours.
  • Winners of Moneynet Awards 2018: Best All Round Personal Finance Provider.

Metro Bank launched in 2010 and, at the time, was the first new high street bank to launch in the United Kingdom in over 150 years. Metro’s unique value is that it combines online banking with branches with long opening hours, ideal for businesses that need to make regular cash deposits.

Metro has plenty of business savings accounts to choose from:

  • An instant access account paying 0.30% with no minimum balance. This is a variable rate, which might change.
  • Various fixed-term products paying between 0.35% (1 month) and 1.60% (2 years) on balances over £5,000.
  • Notice accounts with terms of 35, 60 or 95 days notice, paying between 0.75% and 1.05%. Unlike some other notice options, you can make as many deposits and withdrawals as you like, so long as the notice period is honoured.
  • A community instant access account, designed for clubs, societies and charities. This pays 0.45% (variable) and there are no monthly fees, set-up costs or minimum deposits. Metro also offers a community fixed term product, with an interest rate of up to 1.65% when fixing for 1 year. A minimum balance of £5,000 applies.
  • A client deposit account, paying 0.30% interest on the money you’re holding for clients. Metro is one of the few high street banks still offering client deposit accounts. If you hold above £500,000 in client deposits and lock the account for up to 3 years, you can earn up to 1.1% interest with their fixed client deposit product.
  • TSB only offers customers an instant access business savings account. But it is one of the best available, paying a very competitive 1.00% on balances over £5,000.
  • Only 38% of customers would recommend TSB, the lowest of the 14 largest business current account providers according to an independent service quality survey.

TSB was created in 2009 and acquired by Spanish bank Sabadell in March 2015. Today, it has a network of 550 branches across England, Scotland and Wales and over 4.6 million customers in the UK.

TSB has one of the simplest offerings in the review, only offering an instant access savings account. This account is available to existing and new customers and can be managed online, via telephone or in one of their branches.

  • Santander business customers can select from instant access and fixed-rate accounts for longer term savings.
  • Many different business types are eligible for Santander’s accounts, including sole traders, partnerships, limited liability partnerships, private limited companies and trusts.
  • If you’re already a 1|2|3 Business World customer, you’ll get preferential rates on the Business Reward Saver and Fixed Rate Business Bond accounts.

Santander’s mission is to “help you prosper” and it has committed to become “the best bank in the UK”. As such, business customers can select from a comprehensive range of different saving account products, to fit your business needs.

The bank currently has 4 different savings accounts:

  • Business Everyday Saver – with 0.35% interest, this is a solid savings option, if it’s instant access you need.
  • Business Reward Saver – 1|2|3 Business World customers get a higher interest rate of 0.3% when withdrawals are made, and 0.6% if the savings are left untouched. Other customers receive 0.1% and 0.4%, respectively.
  • Fixed Rate Business Bond – for balances over £5,000, 1|2|3 Business World customers will get 0.7% interest. Other customers will get 0.5%.
  • Client Saver – this account lets you hold funds on behalf of your clients, receiving interest of 0.35%.

Despite its mission to support businesses, Santander has low average customer review scores. But with online and telephone banking, plus text and email alerts, available on all bar the fixed-rate account, you may not need much in the way of customer service support anyway.

  • Charity Bank’s rates range from 0.65% paid to 1.5% depending on the notice period and savings duration.
  • When you deposit your money in a savings account with Charity Bank, your deposits are used to grant loans to charities and social enterprises.
  • Accounts can be opened online and telephone support is available.

Charity Bank is a new kind of bank, entirely owned by charitable foundations, trusts and social purpose organisations. Its goal is to provide ethical banking, which supports the work of charities and social enterprises across the UK.

But don’t let the name fool you — there’s a menu of business savings accounts on offer, including:

  • An easy access account returning 0.75% on balances between £10,000 and £500,000.
  • A 100-day notice account returning 0.65% to 0.80% depending upon the size of your balance.
  • A 1-year fix, offering 1.20% when you fix for 1 year.
  • Charity Bank also offers a unique product called CITRA, which has a fixed period of 5 years offering a tiny 0.10% interest. However, you’ll gain 5.00% tax relief on your invested amount each year.
  • You can also open a Charity Bank 5-year Community Account (Business), which returns 1.50% deposit interest​ but no tax relief.

As you might expect, Charity Bank also offers similar products for charities, clubs and credit unions.

  • The Co-Operative’s rates range from 0.5% to 1% depending on the notice period and savings duration.
  • All their accounts require that you have a Co-operative Bank Business Current Account.
  • Accounts can be opened online and telephone support is available.
  • Ranked 11th in an independent CMA survey of business banking providers, with 48% of SMEs likely to recommend their business current account provider to other SMEs.

The Co-operative Bank follows an ethical code and screens customers against a moral policy, refusing to do business with businesses with a negative ecological, sociological or political impact. It also regularly conducts customer polls and changes its policies based upon customer opinions.

Co-Operative offers 2 business savings accounts:

  • An easy access account returning 0.50% with no minimum or maximum account balance restrictions.
  • A 95-day notice account returning 1.00% with no minimum or maximum account balance restrictions.

They have received awards for customer service in 2017 and 2018, being awarded Best Service from a Business Bank by Business Moneyfacts.

  • With a choice of fixed term bonds and notice accounts, United Trust offers interest rates of 1.50% to 1.80%, depending on how long you are happy to keep your deposits locked up.
  • These business savings accounts are available to companies, partnerships, pension funds, trusts, clubs, schools and sole traders.
  • United Trust also has a specialised product for registered charities.
  • The bank has been awarded a number of impressive titles, including Development Lender of the Year – Specialist Finance Introducer Awards 2019 and Best Secured Loan Provider – Moneyfacts Awards 2019.

If you don’t need instant access to your business savings, then United Trust Bank may be worth further consideration. Founded in 1955, it prides itself on being an “innovative organisation” with a flat, non-bureaucratic management structure.

Here, businesses have a choice of 4 different savings accounts:

  • Business 1 Year Bond – offering a fixed rate of 1.75% AER.
  • Business 2 Year Bond – with a slightly higher fixed rate of 1.80% AER.
  • Business 100-day Notice Account – offering a variable rate of 1.50% AER.
  • Business 200-day Notice Account – with a slightly higher variable rate of 1.55% AER.

These are competitive rates, but make sure you read the small print as there are a few limitations, such as a minimum £5,000 deposit.

  • A choice of 1, 2 and 3 year fixed rate bonds, offering between 1.35% and 1.65% AER.
  • Customers can also make use of a loyalty reward scheme.
  • A high minimum initial deposit of £10,000.
  • Easily manage your account online, by phone or post.

Whilst the high minimum deposit of £10,000 may put some small businesses off, if you’re looking to set aside a significant sum of money then Cynergy Bank has a fairly competitive range of fixed rate options:

  • Agree a 1 year term, and you’ll receive 1.35% AER.
  • Agree a 2 year term, and you’ll receive 1.50% AER.
  • Agree a 3 year term, and you’ll receive 1.60% AER.

What’s more, if you have been a Cynergy Bank customer for six months or more, you’ll automatically be enrolled into the loyalty rate when you deposit or reinvest, earning you an extra 0.05% in interest.

Formed by the acquisition of Bank of Cyprus UK by Cynergy Capital Limited in 2018, Cynergy Bank’s mission is to “serve the needs of business owners, entrepreneurs and family businesses”. A newly established bank on the scene, this may be one to watch.

  • Kent Reliance offers a simple, instant access savings account with interest rates of 0.90%.
  • Open your account online in just 10 minutes and access funds whenever you want.
  • This product is only available to UK-based private limited companies.

Thanks to its low minimum deposit requirement of £1,000, Kent Reliance is accessible for a wide range of private limited companies.

The simplicity of this instant access business savings account comes from the bank’s ambition to give LTDs an easy way to grow funds, without the complicated sign-up process. This account is online-only, and takes only 10 minutes to set up — which is handy, considering Kent Reliance only has branches in the south east of England.

If you want to be able to access your business savings instantly, this product is a straightforward way of doing so.

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