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.
_All_125x100.png)
_All_125x100.png)
_All_125x100.png)
_All_125x100.png)
_All_125x100.png)
Eligible deposits with UK institutions are protected by the Financial Services Compensation Scheme up to a maximum level of protection of £85,000 per business per institution. The deposits of most businesses are covered up to the £85,000 limit, but businesses should check with their bank before they apply as there are exclusions.
Quick LinksQuick links are where we have an arrangement with a provider so you can move directly from our site to theirs to view more information and apply for a product. We also use quick links where we have an arrangement with a preferred broker to move you directly to their site. Depending on the arrangement we may receive a modest commission either when you press a 'Go to Provider' or 'Speak to an Adviser' button, when you call an advertised number or when you complete an application.
BALANCED. Moneyfacts.co.uk is entirely independent and authorised by the Financial Conduct Authority for mortgage, credit and insurance products.
FREE. There is no cost to you. Our service is entirely free and you don't need to share any personal data to access our comparison tables.
TRANSPARENT. We only receive payment from product providers and intermediaries for quick/direct links and adverts through to their websites.
COMPREHENSIVE. We research the whole market and scour the small print so you can find the best products for your needs.
Weekend Moneyfacts is available free by email to all Moneyfacts.co.uk users.
Please send me Weekend Moneyfacts, Savers Friend and selected third-party offers.
Should you take out a commercial property mortgage or rent instead?
What you need to know about how being self-employed can impact your finances.
Find out when you can use a bridging loan rather than a commercial mortgage.
Find out when you can use a bridging loan rather than a commercial mortgage.
Why it's a good idea to keep your business and personal bank accounts separate
Why it's a good idea to keep your business and personal bank accounts separate
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.
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.
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.
