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
Santander Savings Accounts
Santander offer 0.25% interest on credit balances for current account holders with turnovers of less than £250,000 but have various offers as follows. The bonus saver accounts offer more than most other banks.
- Business Bonus Saver - pays 1.17% gross plus 0.08% bonus if you make no more than one withdrawal each month.
- Online Business Saver - pays 1.42% gross plus 0.08% bonus if you make no more than one withdrawal each month.
- Client Business Reserve - pays 0.25% for balances up to £9,999 and 1.00% over that
- 1 Year Business Bond - pays 3.00% for deposits between £25,000 and £5,000,000
- 6 month Business Bond - pays 2.25% for deposits between £25,000 and £2,000,000
More information at Santander Savings Products