By Henry Williams on Growth Business – Your gateway to entrepreneurial success
Instead of letting excess cash sit idle in a low-interest business account, consider depositing it into a dedicated business savings account. These accounts allow businesses to earn interest on surplus funds, providing a risk-free way to grow revenue without additional effort.
This guide explores the best business savings accounts for 2025, tailored to the needs of larger, growing businesses. We’ll break down the types of accounts, their benefits, and how to choose the right one for your business goals.
What is a Business Savings Account?
A business savings account is a bank account designed for businesses to earn interest on surplus funds. Interest is calculated as a percentage of the deposit and paid periodically, helping businesses grow their cash reserves over time.
Types of Business Savings Accounts
Account Type
Key Features
Easy Access
– Withdraw funds anytime
– Lower interest rates compared to other types
Notice
– Withdraw funds after giving notice (e.g., 30, 90, or 180 days)
– Higher interest rates than easy access accounts
Fixed Term
– Funds locked for a set period (e.g., 1-5 years)
– Highest interest rates
– No withdrawals allowed until maturity
How Business Savings Accounts Work
Here’s how business savings accounts work:
Interest Calculation: Interest is typically calculated daily and paid monthly or annually.
Tax Implications: Interest earned is considered profit and is subject to taxes. Limited companies pay corporation tax, while sole traders pay income tax above the tax-free allowance.
For example, if you deposit £10,000 in an easy access account with an AER of 4.83%, your balance after 12 months would be £10,483.
Pros and Cons of Business Savings Accounts
Pros
Earn interest on surplus funds
Variety of account types to suit different needs
Ringfence cash for future liabilities or goals
Cons
Interest rates may drop after introductory offers
Fixed-term accounts restrict access to funds
Some accounts have restrictive terms or low maximum deposit limits
Best Business Savings Accounts for Growing Businesses in 2025
Provider
Best For
Key Features
Large cash reserves, flexibility, high deposit limits
– £10m max deposit (notice accounts)
– Up to 4.39% AER
Flexibility, high interest rates, multiple account types
– £2m max deposit
– Up to 4.56% AER (fixed term)
High interest rates, large cash reserves
– £2m max deposit
– Up to 4.83% AER (easy access)
Mix of flexibility and competitive rates
– £750k max deposit
– Up to 4.55% AER (fixed term)
Moderate cash reserves, competitive rates
– £500k max deposit
– Up to 4.80% AER (fixed term)
Small to mid-sized businesses, ease of use
– No max deposit (but no interest above £75k)
– 4.07% AER (introductory)
These rates and limits correct as of March 2025.
Bank of London
Term Type
Easy Access
Notice (31, 45, 95, 180-day)
Minimum deposit
None
None
Maximum deposit
£2m
£10m
Interest rates
Up to 3.56% AER
Up to 4.39% AER
Bank of London stands out for its high maximum deposit limits (up to £10m for notice accounts) and competitive interest rates (up to 4.39% AER). With no minimum deposit requirement and flexible notice periods (31 to 180 days), it’s ideal for businesses with significant cash reserves looking to maximize returns while maintaining some access to funds.
Eligibility:
UK or non-UK businesses (subject to terms)
LTD, LLP, and PLCs
Not available to sole traders or freelancers
Shawbrook Bank
Term Type
Easy Access
Notice
Fixed Term
Minimum deposit
£1,000
£5,000
£5,000
Maximum deposit
£85,000
£2m
£2m
Interest rates
Variable gross AER
4.20% annually, 4.12% monthly
Variable gross AER
45 day notice: 3.76% annually, 3.70% monthly
100 day notice: 4.51% annually, 4.42% monthly
Fixed gross AER
1 year: 4.56% annually, 4.47% monthly
2 year: 4.21% annually, 4.13% monthly
Shawbrook Bank offers a wide range of account types, including easy access, notice, and fixed-term accounts, making it a versatile choice for growing businesses. With high interest rates (up to 4.56% AER for fixed-term accounts) and a £2m maximum deposit limit, it’s perfect for businesses that want to diversify their savings strategy.
Eligibility:
UK residents/businesses
Sole traders, LTDs, partnerships (not LLPs)
Allica Bank
Term Type
Easy Access
Minimum deposit
£20,000
Maximum deposit
£2m
Interest rates
Variable gross 4.83% AER
Allica Bank offers one of the highest variable AERs (up to 4.83%) for its easy access account, making it a top choice for businesses looking to earn high interest while maintaining liquidity. With a £2m maximum deposit limit, it’s ideal for businesses with large cash reserves. However, it’s exclusive to Allica Business Rewards Account holders, so it’s best suited for established businesses.
Eligibility:
UK-based and registered with Companies House
Must have an Allica Business Rewards Account
Hampshire Trust Bank
Term Type
Easy Access
Notice
Fixed Term
Minimum deposit
£5,000
£5,000
£5,000
Maximum deposit
£750,000
£750,000
£750,000
Interest rates
Variable gross AER 4.10%
Variable gross AER 3.95%
Fixed gross AER 4.16% to 4.55% depending on term
Hampshire Trust Bank provides a mix of easy access, notice, and fixed-term accounts, offering flexibility for businesses with varying needs. With a £750,000 maximum deposit limit and competitive interest rates (up to 4.55% AER for fixed-term accounts), it’s a solid choice for businesses looking to balance accessibility and returns.
Eligibility:
UK residents
18+ years old
UK businesses
JN Bank
Term Type
Easy Access
Fixed Term
Minimum deposit
£1
£100
Maximum deposit
£500,000
£500,000
Interest rates
3.76% gross/ AER variable
Between 4.40% to 4.80% gross AER depending on term
JN Bank offers easy access and fixed-term accounts with low minimum deposits (£1 for easy access) and competitive interest rates (up to 4.80% AER for fixed-term accounts). While the £500,000 maximum deposit limit is lower than some competitors, it’s a great option for smaller to mid-sized businesses looking to grow their savings with flexibility.
Eligibility:
UK residents
18+ years old
UK mobile phone, email, and bank account
Tide
Term Type
Easy Access
Minimum deposit
£1
Maximum deposit
Unlimited (Balance above £75,000 earns no interest)
Interest rates
4.07% AER variable for new customers (reverts to 3.29% until 1st June 2025)
Tide’s easy access account is perfect for businesses new to savings accounts or those with smaller cash reserves. With a low minimum deposit (£1) and an introductory 4.07% AER (reverting to 3.29% after June 2025), it’s a simple and flexible option. However, interest stops accruing on balances above £75,000, making it less suitable for larger businesses.
Eligibility:
UK businesses
18+ years old
Valid photo ID
How to Choose the Right Business Savings Account
Define Your Goals:
Do you need immediate access to funds? → Easy Access Account
Can you wait for withdrawals? → Notice Account
Are you comfortable locking funds away? → Fixed Term Account
Consider Deposit Limits:
Ensure the account accommodates your surplus funds.
Compare Interest Rates:
Look for competitive rates, but be aware of introductory offers that may expire.
Check Eligibility:
Ensure your business meets the account requirements.
Simplify Savings Management with Akoni
Managing multiple savings accounts can be time-consuming. Akoni offers a cash management platform that provides access to over 20 banks through a single application. This allows you to:
Move funds between accounts easily.
Access the best interest rates daily.
Spread risk across multiple FSCS-protected accounts.
Akoni also alerts you to better deals and provides a dashboard to manage all your savings in one place. Simply fill in the form at the top of the page to get started.
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