Business Savings Accounts

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

Most business current accounts pay 0% on credit amounts, so it's wise to ensure you set up some form of savings to at least improve this number. Since the Bank of England has reduced the base rate, the range of products available in the market for your business reserves is limited to just a few.

Best Savings Rates Chart by Bank

Savings Value Lloyds HSBC Barclays Natwest Santander
£1+ 0.05% 0.03% 0.00% 0.01% 0.01%
£50,000+ 0.05% 0.03% 0.00% 0.01% 0.01%
£100,000+ 0.05% 0.03% 0.00% 0.01% 0.01%
£250,000+ 0.05% 0.03% 0.00% 0.01% 0.01%
£500,000+ 0.05% 0.03% 0.00% 0.01% 0.01%
£1,000,000+ 0.05% 0.04% 0.05% 0.01% 0.01%

Rates correct at time of press. All accounts are instant access with interest paid monthly.

HSBC Credit Accounts

HSBC pay up to 0.04% 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.

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

More information at HSBC Business Savings Accounts page.

Barclays Business Banking

Barclays provides 0.00% on credit balances on all balances up £1,000,000. If you have spare capital and bank with Barclays, you may want to look at an alternative institution.

Get more information on Barclays Business Savings Accounts.

Natwest Business Savings

Natwest pays just 0.01% interest on current and savings accounts, so it's best to check out all of their savings products 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.

More information at Natwest Business Savings and Investing.

Lloyds Savings Accounts

Unlike all other banks, Lloyds doesn't pay different amounts by tier although the rates are still in line with their compatriots.

More information at Lloyds TSB Savings and Deposit rates for businesses.

Santander Savings Accounts

Santander offers 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.

More information at Santander Savings Products.

Other Options to Improve Credit Income

When interest rates are as low as they are now, it's difficult to receive a decent income. Here are some other options to consider.