What are Business Bonds?

Business fixed rate bonds are available to all businesses, although some accounts have qualifying conditions related to turnover or the type of business. Typically, they work in much the same way as fixed rate bonds for personal use. View today's best rates below or read our guide to business bonds to learn more.


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Masthaven Bank Logo
Masthaven Bank 48 Month Flexible Term Saver FSCS logo
FSCS logo
AER
2.18%
Notice / Term
48 Month Bond
Min Investment
£5,000
Account Type
Business Fixed
Interest Paid
Anniversary
Go To Provider's Site
Account Information
Application Criteria
Access
Rates
Information
Additional Information

Account Information

Account Available From 12/09/2018
Interest Type Fixed Rate
Account Management
Post
Branch
Internet
Telephone
Mobile App

Application Criteria

Minimum Turnover N/A
Maximum Turnover N/A
Available To
Limited Company Sole Trader

Access

Withdrawals Allowed
Early Access Allowed
Access Note N/A
Further Additions Allowed

Rates

Rate 2.18% paid at £5K
AER 2.18% paid at £5K

Information

Minimum Opening Amount £5,000
Maximum Investment £500,000
Introductory Bonus N/A
Min Age N/A
Max Age N/A
Taxation -

Additional Information

N/A
Masthaven Bank Logo
Masthaven Bank 5 Year Fixed Term Bond FSCS logo
FSCS logo
AER
2.10%
Notice / Term
5 Year Bond
Min Investment
£5,000
Account Type
Business Fixed
Interest Paid
Anniversary
Go To Provider's Site
Account Information
Application Criteria
Access
Rates
Information
Additional Information

Account Information

Account Available From 26/09/2019
Interest Type Fixed Rate
Account Management
Post
Branch
Internet
Telephone
Mobile App

Application Criteria

Minimum Turnover N/A
Maximum Turnover N/A
Available To
Limited Company Sole Trader

Access

Withdrawals Allowed
Early Access Allowed
Access Note N/A
Further Additions Allowed

Rates

Rate 2.10% paid at £5K
AER 2.10% paid at £5K

Information

Minimum Opening Amount £5,000
Maximum Investment £500,000
Introductory Bonus N/A
Min Age N/A
Max Age N/A
Taxation -

Additional Information

N/A
Masthaven Bank Logo
Masthaven Bank 3 Year Fixed Term Bond FSCS logo
FSCS logo
AER
2.00%
Notice / Term
3 Year Bond
Min Investment
£5,000
Account Type
Business Fixed
Interest Paid
Anniversary
Go To Provider's Site
Account Information
Application Criteria
Access
Rates
Information
Additional Information

Account Information

Account Available From 12/09/2018
Interest Type Fixed Rate
Account Management
Post
Branch
Internet
Telephone
Mobile App

Application Criteria

Minimum Turnover N/A
Maximum Turnover N/A
Available To
Limited Company Sole Trader

Access

Withdrawals Allowed
Early Access Allowed
Access Note N/A
Further Additions Allowed

Rates

Rate 2.00% paid at £5K
AER 2.00% paid at £5K

Information

Minimum Opening Amount £5,000
Maximum Investment £500,000
Introductory Bonus N/A
Min Age N/A
Max Age N/A
Taxation -

Additional Information

N/A
Masthaven Bank Logo
Masthaven Bank 30 Month Flexible Term Saver FSCS logo
FSCS logo
AER
1.95%
Notice / Term
30 Month Bond
Min Investment
£5,000
Account Type
Business Fixed
Interest Paid
Anniversary
Go To Provider's Site
Account Information
Application Criteria
Access
Rates
Information
Additional Information

Account Information

Account Available From 03/12/2018
Interest Type Fixed Rate
Account Management
Post
Branch
Internet
Telephone
Mobile App

Application Criteria

Minimum Turnover N/A
Maximum Turnover N/A
Available To
Limited Company Sole Trader

Access

Withdrawals Allowed
Early Access Allowed
Access Note N/A
Further Additions Allowed

Rates

Rate 1.95% paid at £5K
AER 1.95% paid at £5K

Information

Minimum Opening Amount £5,000
Maximum Investment £500,000
Introductory Bonus N/A
Min Age N/A
Max Age N/A
Taxation -

Additional Information

N/A
Masthaven Bank Logo
Masthaven Bank 2 Year Fixed Term Bond FSCS logo
FSCS logo
AER
1.90%
Notice / Term
2 Year Bond
Min Investment
£5,000
Account Type
Business Fixed
Interest Paid
Anniversary
Go To Provider's Site
Account Information
Application Criteria
Access
Rates
Information
Additional Information

Account Information

Account Available From 03/12/2018
Interest Type Fixed Rate
Account Management
Post
Branch
Internet
Telephone
Mobile App

Application Criteria

Minimum Turnover N/A
Maximum Turnover N/A
Available To
Limited Company Sole Trader

Access

Withdrawals Allowed
Early Access Allowed
Access Note N/A
Further Additions Allowed

Rates

Rate 1.90% paid at £5K
AER 1.90% paid at £5K

Information

Minimum Opening Amount £5,000
Maximum Investment £500,000
Introductory Bonus N/A
Min Age N/A
Max Age N/A
Taxation -

Additional Information

N/A
Masthaven Bank Logo
Masthaven Bank 18 Month Flexible Term Saver FSCS logo
FSCS logo
AER
1.85%
Notice / Term
18 Month Bond
Min Investment
£5,000
Account Type
Business Fixed
Interest Paid
Anniversary
Go To Provider's Site
Account Information
Application Criteria
Access
Rates
Information
Additional Information

Account Information

Account Available From 03/12/2018
Interest Type Fixed Rate
Account Management
Post
Branch
Internet
Telephone
Mobile App

Application Criteria

Minimum Turnover N/A
Maximum Turnover N/A
Available To
Limited Company Sole Trader

Access

Withdrawals Allowed
Early Access Allowed
Access Note N/A
Further Additions Allowed

Rates

Rate 1.85% paid at £5K
AER 1.85% paid at £5K

Information

Minimum Opening Amount £5,000
Maximum Investment £500,000
Introductory Bonus N/A
Min Age N/A
Max Age N/A
Taxation -

Additional Information

N/A
Masthaven Bank Logo
Masthaven Bank 1 Year Fixed Term Bond FSCS logo
FSCS logo
AER
1.80%
Notice / Term
1 Year Bond
Min Investment
£5,000
Account Type
Business Fixed
Interest Paid
On Maturity
Go To Provider's Site
Account Information
Application Criteria
Access
Rates
Information
Additional Information

Account Information

Account Available From 03/12/2018
Interest Type Fixed Rate
Account Management
Post
Branch
Internet
Telephone
Mobile App

Application Criteria

Minimum Turnover N/A
Maximum Turnover N/A
Available To
Limited Company Sole Trader

Access

Withdrawals Allowed
Early Access Allowed
Access Note N/A
Further Additions Allowed

Rates

Rate 1.80% paid at £5K
AER 1.80% paid at £5K

Information

Minimum Opening Amount £5,000
Maximum Investment £500,000
Introductory Bonus N/A
Min Age N/A
Max Age N/A
Taxation -

Additional Information

N/A
Aldermore Logo
Aldermore 1 Year Fixed Rate Savings Account FSCS logo
FSCS logo
AER
1.65%
Notice / Term
1 Year Bond
Min Investment
£1,000
Account Type
Business Fixed
Interest Paid
Monthly
Go To Provider's Site
Account Information
Application Criteria
Access
Rates
Information
Additional Information

Account Information

Account Available From 10/10/2019
Interest Type Fixed Rate
Account Management
Post
Branch
Internet
Telephone
Mobile App

Application Criteria

Minimum Turnover N/A
Maximum Turnover N/A
Available To
Limited Company Limited Liability Partnership Partnership Public Limited Company Sole Trader

Access

Withdrawals Allowed
Early Access Allowed
Access Note N/A
Further Additions Allowed

Rates

Rate 1.64% paid at £1K
AER 1.65% paid at £1K

Information

Minimum Opening Amount £1,000
Maximum Investment £1,000,000
Introductory Bonus N/A
Min Age N/A
Max Age N/A
Taxation -

Additional Information

N/A
Aldermore Logo
Aldermore 1 Year Fixed Rate Savings Account FSCS logo
FSCS logo
AER
1.65%
Notice / Term
1 Year Bond
Min Investment
£1,000
Account Type
Business Fixed
Interest Paid
On Maturity
Go To Provider's Site
Account Information
Application Criteria
Access
Rates
Information
Additional Information

Account Information

Account Available From 10/10/2019
Interest Type Fixed Rate
Account Management
Post
Branch
Internet
Telephone
Mobile App

Application Criteria

Minimum Turnover N/A
Maximum Turnover N/A
Available To
Limited Company Limited Liability Partnership Partnership Public Limited Company Sole Trader

Access

Withdrawals Allowed
Early Access Allowed
Access Note N/A
Further Additions Allowed

Rates

Rate 1.65% paid at £1K
AER 1.65% paid at £1K

Information

Minimum Opening Amount £1,000
Maximum Investment £1,000,000
Introductory Bonus N/A
Min Age N/A
Max Age N/A
Taxation -

Additional Information

N/A
Virgin Money Logo
Virgin Money 1 Year Business Fixed Rate Savings Account 24 FSCS logo
FSCS logo
AER
1.60%
Notice / Term
20.11.20
Min Investment
£1
Account Type
Business Fixed
Interest Paid
Monthly
Go To Provider's Site
Account Information
Application Criteria
Access
Rates
Information
Additional Information

Account Information

Account Available From 05/11/2019
Interest Type Fixed Rate
Account Management
Post
Branch
Internet
Telephone
Mobile App

Application Criteria

Minimum Turnover N/A
Maximum Turnover N/A
Available To
Limited Company Limited Liability Partnership Partnership Public Limited Company Sole Trader

Access

Withdrawals Allowed
Early Access Allowed
Access Note N/A
Further Additions Allowed

Rates

Rate 1.59% paid at £1
AER 1.60% paid at £1

Information

Minimum Opening Amount £1
Maximum Investment £2,000,000
Introductory Bonus N/A
Min Age N/A
Max Age N/A
Taxation -

Additional Information

N/A
Note

Eligible deposits with UK institutions are protected by the Financial Services Compensation Scheme up to a maximum level of protection of £85,000 per person per institution.

Disclaimer

All rates subject to change without notice. Please check all rates and terms before investing or borrowing.

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Ask us anything?

Ask us anything?

A guide to business bonds

nigel woollsey

Nigel Woollsey

Online Writer

At a glance

  • Fixed rate business bonds normally pay higher levels of interest than standard business savings accounts.
  • Typically, withdrawals will not be allowed (or at least be very limited) during the term of the bond. If you do withdraw any cash you are likely to be penalised in terms of loss of interest or even closure of the account.
  • There may be qualifying conditions or minimum levels of deposit required.

Business bonds explained

Business bonds are more suited to business owners looking to set aside a lump sum for a fixed amount of time, but the advantage of this commitment is that interest rates tend to be higher on fixed rate business bonds than their variable rate (and more accessible) counterparts. It’s important that you make a note of the bond maturity date, as if you forget to give instructions to your bank or building society ahead of time the funds will generally be transferred to a lower-paying variable rate account.

Should I lock my money away?

This depends on your business needs, but a good rule of thumb is probably to split your savings between easy access and fixed rate accounts. The benefit of locking your money away is that you'll get more interest, and generally speaking, the longer the term, the higher the rate.

This means you have the potential to get a substantial return from your surplus cash by the end of the term, but just bear in mind that fixed rate accounts typically won't allow access prior to maturity (and if they do, there could be a hefty penalty), so you'll need to be confident that you won't need access to your money for the duration of the deal.

This is why you'll want to keep at least a portion of your savings in a more accessible account, to ensure you can withdraw funds easily should you need them. These accounts will typically be variable rate, which means they could change at any time, but there are still some competitive deals available – particularly if you don't mind giving a bit of notice to access your funds.

Then there's the potential to lock your money away for only a very short period of time – this could still give you a better return than an easy access account, but you can be safe in the knowledge that you don't have to lose access for long. Some providers will offer fixed rate bonds with terms as short as three or six months, which could be the ideal compromise for some businesses.

Depositor protection for businesses

Money held in a business bond may fall under the protection of the Financial Services Compensation Scheme (FSCS).

Whether a business is eligible for protection under the compensation scheme is not straightforward (even the FSCS’s site can’t give a definitive answer!), but generally the deposits of non-financial businesses will be covered.

The FSCS protects the first £85,000 an eligible business has held under a single UK banking licence.

You can read more about this protection in our depositor protection scheme - business and charities guide.

Moneyfacts tip

Moneyfacts tip nigel woollsey

If you suspect you may need access to your funds it may be better to choose a business deposit account with easy access – the interest you earn may be a bit less but you won’t incur any penalties if you do need to withdraw funds during the term.

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