Business Savings Accounts

If you regularly have credit balances on your bank account then you'll need to choose the best business savings account to make your money work harder rather than simply leaving it in your current account.

Most business current accounts only pay 0.10% so it's wise to ensure you set up some form of savings account to at least double this amount. Below are the rates from the major banks that offer business banking.

HSBC Business Bank Account

HSBC offer the standard 0.10% on credit balances and have various other accounts that can earn additional interest but you may need to tie your money up for an extended period. With base rates low the banks are not going to give their business customers too much over base.

• Business high Interest Deposit Bond - for deposits of over £5,000 offers 1.26% AER - the bond is fixed for a period of between 3 months and 3 years
• Business Money Manager - Instant access savings account with no fees or penalties earning 0.39% AER

There are a few more specialist type of deposit accounts available.

More information at HSBC Business Savings Accounts

Barclays Business Banking

Barclays offer the standard 0.10% on credit balances on current accounts but also have various instant access savings account products for businesses. Again the rate of interest is going to be low as the base rate is at a record low. Best speak with them first to see what's on offer and if there are any longer term deals on offer.

• Instant Access Saver
• Business Base Rate Tracker
• Longer term savings solutions for balances over £100,000
• Clients Premium Account if you hold balances on behalf of clients

More information at Barclays Business Savings Accounts

Natwest Business Banking

Natwest generally pay 0.10% interest on current and savings accounts so it's best to check out all of their savings accounts and move your spare money to the right place. The rates across the board are low so if you bank with Natwest it's probably not worth worrying too much of what savings account your business has.

• Reserve Account for Business - an instant access account that pays 0.10% unless you have over £250,000 then it pays just 0.15%
• Bonus saver account - same interest rates as above but pays a bonus of 1.0% per quarter if you make no more than one withdrawal
• Direct reserve is for clients who just want to manage their accounts via internet banking or the telephone. Rates are 0.10% up to £10,000 then 0.25% between £10,001 and £25,000 , 0.50% between £25,000 and £250,000 and 0.75% above that.
• Treasury reserve if you have larger deposits or can leave your money for 28 days on deposit.
• Other specialist accounts to manage clients money and non profit community accounts.

More information at Natwest Business Saving and Investing

Lloyds TSB Business Bank Accounts

Like with all other banks Lloyds TSB only pay 0.10% gross on deposits although there are additional accounts to make your money earn a little more.

The rates are low across all product ranges so it's best to put your efforts into running your business rather than where your credit reserves are deposited with Lloyds.

• Business instant access account - pays 0.10% on all deposits from £1 to over £1 million
• Business 30 day notice account - pays 0.10% on all deposits.

We couldn't find any accounts with Lloyds TSB that paid more than 0.10% unless you had a balance of £250,000 and had a turnover of at least £2 million - so the moral here is if you want to earn anything half decent is to search other banks online.

More information at Lloyds TSB Savings and Deposit rates for businesses

Alliance & Leicester Savings Accounts

Alliance and Leicester offer the standard 0.10% interest on credit balances for current account holders but have various offers as follows. The bonus offer sounds like a good plan so long as you have anything substantial on deposit. A 0.30% rate on £100,000 for a whole year is only £300 interest.

• Business Instant Savings Accounts - pays 0.10% plus 0.30% bonus if you make no more than one withdrawal in each bonus period. The 0.10% rate tracks the Bank of England base rate so should rise when interest rates improve.
• Business Instant Savings Account - offers the same rates as above
• Base Rate Beater - offers a rate of current base rate + 0.10% (currently 0.60%) but requires a deposit of at least £200k

More information at Alliance & Leicester Savings Rates

Share This Page

If you found this site useful why not email a friend or add it to your bookmarks or website. Use the shareit button (just hover your mouse over it to show all the options...) or use our linking code

If you have an article you'd like featured on this site then please send it to us by using the details on our contact page.