By Henry Williams on Growth Business – Your gateway to entrepreneurial success Discover the best business savings accounts for growing businesses. We cover types of accounts, benefits, and how to choose the right one The post UK Business Savings Accounts for Growth Businesses appeared first on Growth Business.
Henry Williams
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 2026, 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 4.00%, your balance after 12 months would be £10,400.
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 2026
Provider
Best For
Key Features
High interest rates, large cash reserves, high deposit limits
– £20k min deposit, £2m max deposit
– Up to 4.00% AER (fixed term)
Flexibility, high interest rates, variety of deposit accounts
– £5k min, £2m max deposit
– Up to 4.22% AER (fixed term)
Mix of flexibility and competitive rates
– £5k min, £750k max deposit
– Up to 4.46% AER (fixed term)
High interest rates, high deposit limits, larger enterprises
– £50k min, £10m max deposit
– Up to 4.25% AER (fixed term)
Moderate cash reserves, flexibility
– £5k min, £500k max deposit
– Up to 4.40% AER (fixed term)
Small to mid-sized businesses, ease of use
– Interest stops accruing above account limit
– 4.00% AER (introductory)
These rates and limits correct as of June 2026.
Allica Bank
Term Type
Easy Access
Notice (95-, 180-day)
Fixed (6-, 12-, 18-month)
Minimum deposit
£20K
£20K
£20K
Maximum deposit
£2m
£2m
£2m
Interest rates
Up to 2.80% AER variable
Up to 3.70% AER variable
Up to 4.00% AER
Allica Bank stands out for its high maximum deposit limits (up to £2m for all accounts) and competitive interest rates (up to 4.00% AER). With a £20K minimum deposit, it’s ideal for businesses with significant cash reserves looking to maximise returns. However, it’s exclusive to Allica Business Rewards Account holders, so it’s best suited for established businesses.
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 (45-, 100-day)
Fixed Term (1-, 2-year)
Minimum deposit
£1,000
£5,000
£5,000
Maximum deposit
£500,000
£2m
£2m
Interest rates
3.86% AER variable
Up to 3.51% AER variable
Up to 4.22%
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 4.22% AER for fixed-term accounts) and a £2m maximum deposit limit (for notice and fixed term – easy access max is £500,000), it’s perfect for businesses that want to diversify their savings strategy.
Eligibility:
UK residents/businesses Sole traders, LTDs, partnerships (not LLPs) Hampshire Trust Bank
Term Type
Easy Access
Notice (95-day)
Fixed Rate (6-, 12-, 24-, 60-month)
Minimum deposit
£5,000
£5,000
£5,000
Maximum deposit
£750,000
£750,000
£750,000
Interest rates
3.91% AER variable
Up to 4.01% AER variable
Up to 4.46% AER
Hampshire Trust Bank offers one of the highest AERs (up to 4.46%) for its 1-year fixed term access, making it a top choice for businesses looking to earn high interest on funds they can lock away for a while. With a £2m maximum deposit limit, it’s ideal for businesses with large cash reserves, although it’s £5K minimum deposit requirements make it accessible for those with smaller reserves.
Eligibility:
UK-based and registered with Companies House OakNorth
Term Type
Easy Access (saver)
Notice (95-, 125-days)
Fixed Term (6-,12-,
Minimum deposit
£1
£50,000
£50,000
Maximum deposit
N/A
£15m
£10m
Interest rates
2.35% AER variable
Up to 3.65% AER variable
Up to 4.25% AER
OakNorth provides a mix of easy access, notice, and fixed-term accounts, offering flexibility for established businesses with high cash reserves. With a £50k minimum deposit limit and competitive interest rates (up to 4.25% AER for fixed-term accounts), it’s less suitable for smaller businesses but a solid choice for larger businesses looking to balance accessibility and returns.
Eligibility:
UK residents 18+ years old UK businesses Virgin Money
Term Type
Easy Access
Notice (30-, 65-, 95-, 120-day)
Fixed Term 3-, 6-, 12-, 18-, 24-month
Minimum deposit
£1
£1
£100
Maximum deposit
£2m
N/A
£25m
Interest rates
3.50% AER variable
Up to 3.51% AER variable
Up to 3.70% AER
Virgin Money offers easy access and notice accounts with low minimum deposits (£1 for both) and competitive interest rates (up to 3.70% AER for fixed-term accounts). With a £25m maximum deposit for fixed-term deposits, Virgin Money is a great option for businesses with small and large cash reserves.
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 threshold for your plan earns no interest)
Interest rates
4.00% AER for new customers (reverts to standard rate for your plan after 4 months)
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 4.00% AER (reverting to standard rate after six months), it’s a simple and flexible option. However, interest stops accruing on balances above the max limit of the plan you’re on, which ranges from £75,000 on the free account to £01m on the Max account, 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 banking partners through a single application. This allows you to:
Move funds between accounts easily. Access competitive interest rates. Enhance your FSCS protection.
Akoni also shows your liquidity and can be connected to other bank accounts. For more information or to start an application, please click here. If you’d like to make an enquiry, fill in the form at the top of the page and someone from Akoni will be in touch shortly to answer any questions you may have.
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