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Business savings accounts explained

A business savings account lets your business earn interest on money it doesn't need day to day, such as a tax set-aside or a cash buffer. This guide explains the main types, how rates and caps work, how your money is protected, and what some UK providers offered when we checked.

By the Business Account Review editorial team · checked 25 October 2026 · How we check

What is a business savings account?

A business savings account is a separate account, held in your business's name, that pays interest. You move money in from your business current account and move it back when you need it. Many business current accounts pay no interest at all. Starling, for example, says no interest is paid on positive balances in its business current account.

Businesses tend to use a business savings account for:

  • money set aside for VAT, Corporation Tax or Self Assessment bills
  • an emergency buffer for quiet months
  • saving towards equipment, stock or a deposit on premises

Some providers call their business savings account a "saver", a "savings pot" or a "space". What matters is the rate, how quickly you can get your money, and who actually holds it.

Instant access, notice and fixed-term

1

Instant access

This kind of business savings account lets you withdraw at any time, usually back to your linked business account. Rates are normally variable, so they can go up or down. This is the most common type offered by app-based business accounts.

2

Notice

You give a set period of notice before you withdraw, for example a few weeks or months. In return, rates can be higher than instant access. Check what happens if you need the money in a notice business savings account sooner.

3

Fixed-term

You lock money away for a fixed period at a fixed rate. You generally can't withdraw early, or you may lose interest if you do. Useful only for money you're sure you won't need.

The right type of business savings account depends on when you'll need the money. Tax money with a known due date may suit a different account from an emergency buffer. If you're unsure how much to set aside for tax, ask your accountant.

How rates, intro offers and caps work

Comparing the headline rate on each business savings account can mislead you. Look at these four things:

AER and gross
AER (annual equivalent rate) shows what you'd earn over a year with interest compounded, so it's the fairer figure for comparing. The gross rate is the rate before any tax.
Introductory rates
Many providers pay a higher rate for the first few months, then drop to a lower standard rate. Note the end date.
Plan-linked rates
On several app-based accounts, the business savings account rate depends on which paid plan you're on. A higher rate on a paid plan may not cover the plan fee.
Balance caps
Rates often apply only up to a set balance. Above the cap, you may earn a lower rate or nothing.

A variable-rate business savings account can change its rate under the provider's terms. Tide's Instant Saver summary box, for example, says the rate is set below the Bank of England Base Rate, so Base Rate changes apply automatically, and Tide gives at least 14 days' written notice of other cuts.

Is your money protected?

How safe a business savings account is depends on who holds your money. If it's held with a UK bank, building society or credit union, eligible deposits are protected by the Financial Services Compensation Scheme (FSCS) if that firm fails.

  • The limit: for a business savings account at a UK bank, FSCS protects up to £120,000 per eligible depositor, per authorised firm. This limit has applied since 1 December 2025; before that it was £85,000.
  • Companies: FSCS says it generally protects companies' deposits, whatever the size of the company. A limited company's deposits are protected separately from its directors' personal savings.
  • Sole traders: FSCS says your business and personal accounts at the same bank are added together, with one £120,000 limit in total.
  • Partnerships: one £120,000 limit applies to the business account.
  • Shared licences: brands that share a banking licence count as one bank. Mettle, for instance, shares NatWest's limit.

Read the FSCS guidance for small businesses and limited companies and check the deposit protection limit page if you hold large balances.

E-money and partner banks. Some business accounts are e-money accounts, which are safeguarded rather than FSCS-protected. Their savings product may still be held with a partner bank. ANNA, for example, says its main account is safeguarded and not FSCS-covered, but its savings are held with Griffin Bank and are FSCS-eligible. Our guide to bank vs e-money accounts explains the difference.

Not every interest product is a savings account. Wise's Interest feature invests in a fund and says "Capital at risk", so it is not a deposit with FSCS deposit protection. Revolut says its Business Savings are held with a third-party deposit provider and "may be" FSCS-protected depending on that provider. Check before you move money.

Business savings account examples from UK providers

These are the rates and terms shown on each provider's own pages when we checked on 25 October 2026. Rates are variable and change often, so always check the current summary box before you open a business savings account.

Business savings account options (providers' own pages, checked 25 October 2026)
ProviderProductRate shownWho holds the money
TideInstant Saver3.25% AER intro for 4 months for new members, then 1.50% AER (Free plan, up to £75,000) to 3.25% AER (Max plan)ClearBank, FSCS-protected
MettleBoosted savings pot2.51% AER (variable) for six months, then 0.95% AERNatWest, FSCS-protected (shared NatWest limit)
Monzo BusinessSavings pots1.30% AER (variable) shown for Lite and Pro; "up to 3.25% AER" linked to the Team planMonzo Bank, FSCS-protected
ANNASavingsUp to 3.66% AER promotional rate for the first 3 months, then depends on planGriffin Bank, FSCS-eligible
Revolut BusinessBusiness SavingsNone on Basic; 2.15% AER on Grow, 2.65% on Scale, 3.3% on EnterpriseThird-party deposit provider; may be FSCS-protected

A few notes on the table, as each business savings account has its own small print. Tide's Instant Saver can pay 4.25% AER on up to £1,000,000 during the intro period if you complete a full switch of at least £10,000 into Tide through the Current Account Switch Service, within Tide's time limits. Above each plan's cap, Tide's rate drops to 0%. Monzo's pages show different savings figures, so check the rate for your plan in the app. Zempler's Business Pro plan includes a savings pot, but its pages showed two different rates, so we haven't quoted one. You can see full details in our Tide Instant Saver guide.

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Checklist before you open one

  • Is the headline rate an intro rate? When does it end, and what does it fall to?
  • Does the rate depend on a paid plan, and does the extra interest cover the plan fee?
  • Is there a balance cap above which you earn less or nothing?
  • Can you withdraw instantly, and where can withdrawals go?
  • Who holds the money: a bank, a partner bank, or a fund?
  • Is it FSCS-protected, and do you already hold money with a bank that shares the same licence?
  • Is your business type eligible? Tide's Instant Saver, for example, is for UK-registered sole traders and limited companies.
  • Have you read the business savings account summary box or key terms?

Most business savings accounts are linked to the provider's own current account. Tide says withdrawals from its Instant Saver go only to your nominated account, and money can only come in from it. If you're comparing current accounts too, compare business bank accounts first, then look at the savings options each one offers.

Interest and tax

Business savings account interest is usually paid without tax taken off. Tide's summary box shows gross rates and says that, depending on circumstances, you may have to pay tax on the interest to HMRC. How interest is taxed differs for sole traders and limited companies, so ask your accountant how to record and report it.

Business savings account FAQs

Can a sole trader open a business savings account?

Often, yes, but it depends on the provider. Tide's Instant Saver, for example, is open to UK-registered sole traders and limited companies with a Tide business account. Check each provider's eligibility rules.

Is a business savings account FSCS-protected?

If your money is held with a UK-authorised bank, eligible deposits are protected up to £120,000 per depositor, per firm. E-money accounts and investment funds work differently.

Do I need a current account with the same provider?

Usually. Many app-based providers only offer a business savings account to their current account customers, and withdrawals go back to your linked account.

Can the interest rate change?

Yes, if it's variable. Intro rates also end after a set period. Fixed-term accounts lock in a rate, but limit access.

Will I pay tax on the interest?

Interest from a business savings account may be taxable. Ask your accountant how it applies to your business.

Sources

GuideTide Instant Saver explained GuideIs Tide safe? GuideBank vs e-money account