Best business savings rates for limited companies | moneyfacts.co.uk

nigel woollsey

Nigel Woollsey

Online Writer
Published: 11/03/2020

When it comes to finding a business savings account which pays an acceptable interest rate limited companies can find that – depending on their access requirements and how much they are looking to invest – there can be a dizzying choice of options out there.

We’ve looked at three types of business savings account which are available to limited companies, including easy access, fixed rate bonds and notice accounts, to find the top deals currently on offer.

Top easy access savings accounts for limited companies

Product

Notice/term

Min deposit

Rate ()

 

Instant

£5,000

1.20% variable yearly

Saffron Building Society Business e-saver (Issue 7)

None

£10,000

1.06% variable yearly

Newcastle Building Society Newcastle Business Saver

Instant

£1

1.05% variable on anniversary

1.04% variable monthly

Shawbrook Bank Easy Access Business Account – Issue 1

None

£1,000

1.05% variable on anniversary

1.04% variable monthly

Al Rayan Bank Everyday Saver (Issue 2)

Instant

£500

1.00% variable monthly (expected profit rate)

 

None of the top five products in our easy access chart above are providing ‘inflation-beating’ returns. However, these offer an alternative for limited companies who need instant access and want to earn more interest than offered by business bank accounts.

Top of the chart is Buckingham Building Society’s Business Saver Take 2 Locals, offering a variable yearly interest rate of 1.20% gross for a minimum deposit of £5,000. This account can be opened by post or in branch but is then managed by post only. It’s also important to note that this account is only available to local businesses based in the Buckinghamshire area.

Saffron Building Society require an even bigger minimum deposit of £10,000 to attain a rate of 1.06% gross, however being an online only account, this does have the advantage of easy opening and management outside normal business hours.

Newcastle Building Society and Shawbrook Bank both offer business accounts for limited companies which pay a variable rate of 1.05% gross on the anniversary of opening. Those looking for a regular income can choose monthly interest options from both institutions paying 1.04% gross. While Newcastle Building Society’s Business Saver account can be opened with just a £1, Shawbrook Bank’s Easy Access Business Account – Issue 1 requires a minimum deposit of £1,000. However, the Shawbrook Bank account has the advantage of opening the account by post or internet and subsequently managing the account by post or telephone while Newcastle Building Society’s account is restricted to opening and management in branch only.

Finally, in our top five sits Al Rayan Bank’s Everyday Saver (Issue 2) paying 1.00% expected profit rate on a monthly basis for a minimum deposit of just £500. Interestingly, this has the widest choice of opening and management options of the top five accounts, allowing postal, phone, online, in branch and mobile app access.

Top business fixed rate bonds for limited companies

Product

Notice/term

Min deposit

Rate (AER)

Cambridge & Counties Bank 5 Year Business, Trust & Charity Bond Issue 7

5 years

£10,000

2.20% fixed on anniversary

Masthaven Bank 3 Year Fixed Term Bond

3 years

£5,000

2.00% fixed on anniversary

Masthaven Bank 2 Year Fixed Term Bond

2 years

£5,000

1.80% fixed on anniversary

Virgin Money 1 Year Business Fixed Rate Savings Account 30

To 20.03.21

£1

1.50% fixed yearly

Union Bank of India (UK) Ltd Fixed Rate Deposit

5 years

£1,000

1.55% fixed yearly or on maturity

 

Fixed rate bonds typically offer better interest rates than easy access but with this comes a commitment to locking funds away for a fixed period. As can be seen from the table above, three of the five featured bonds offer interest rates which are at or above the current rate of inflation .

Top of the table is the Cambridge & Counties Bank 5 Year Business, Trust & Charity Bond Issue 7 offering a healthy 2.20% interest paid on the anniversary of opening in return for a minimum deposit of £10,000 – making this the most sizeable deposit on the table. While this account can be opened by post alone it can then be managed online as well.

For those companies looking to invest a little less over a shorter term, Masthaven Bank offers chart topping fixed rate bonds for three and two years for a deposit of £5,000. These pay interest rates of 2.00% and 1.80% variable respectively and have the advantage of both opening and management online.

Virgin Money’s 1 Year Business Fixed Rate Savings Account 30 is offering a rate of 1.50% paid yearly on a deposit of just £1 – making this ideal for any size of limited company. In addition, for those looking for a regular income there is an option offering monthly interest for a slightly reduced rate. Both accounts must be opened online but afterwards can be managed by post as well.

Finally, for those looking for a long-term deposit which has a modest minimum deposit level there is Union Bank of India (UK) Ltd’s Fixed Rate Deposit account. This pays a fixed rate of 1.55% for a deposit of £1,000 held in a five-year bond. This can be opened and managed by post or in branch.

Top business savings notice accounts for limited companies

Product

Notice/term

Min

Interest AER

Shawbrook Bank 45 Day Notice Business Savings Account – Issue 1

45 days

£5,000

1.10% variable monthly

Investec Bank plc 32-day Notice Account – Issue 1

32 days

£40,000

1.06% variable monthly

Al Rayan Bank 60 Day Notice Account

60 days

£250

1.00% variable monthly (expected profit rate)

Cater Allen Private Bank Asset 30 Issue Three

30 days

£5,000

0.90% variable monthly

Shawbrook Bank CAF 60 Day Notice Account - Issue 2

60 days

£1,000

0.90% variable monthly

Table criteria: (60 days notice or less, paying monthly interest on a deposit of £40,000)

The best deal is to be found with Shawbrook Bank’s 45 Day Notice Business Savings Account – Issue 1. Paying 1.10% variable interest on a monthly basis this account can be opened with a minimum deposit of £5,000 while withdrawals are subject to 45 days advance notice. This account can be opened by post or online but must be managed by post or telephone afterwards.

Investec Bank’s 32-day Notice Account – Issue 1 offers only slightly less monthly interest with its return of 1.06% variable but has the advantage of access in a shorter time than that of the leading account. In addition, whilst this account requires a minimum deposit of £40,000 it has the advantage of allowing opening and management online, enabling access outside of normal banking hours.

As a bank operating under Islamic finance principles, Al Rayan’s 60 Day Notice Account offers an expected profit rate of 1.00% variable. At £250 it does offer the lowest minimum deposit of any of the products featured in this table and – as is typical of Al Rayan’s savings products – has a full range of opening and management options including in branch, online, by post, phone and mobile app.

Cater Allen Private Bank with their Asset 30 Issue Three account and Shawbrook Bank’s CAF 60 Day Notice Account – Issue 2, both offer an interest rate of 0.90% variable for a minimum deposit of £5,000 and £1,000 respectively. However, Cater Allen Private Bank’s account requires only 30 days’ notice for withdrawals compared to Shawbrook’s 60-day period. Both accounts must be opened by post but can then be managed by both post and telephone afterwards.

Trying to find the best deal for your business savings?

Moneyfacts.co.uk has the latest deals across the whole of the market for you to choose from, including business accounts, business savings accounts, charity accounts, business bonds and client accounts.

Check out our business finance page to access the top deals for commercial loans, mortgages, business credit cards and much more.

Disclaimer

Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

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