nigel woollsey

Nigel Woollsey

Online Writer
Published: 11/11/2019

When it comes to business savings accounts the market is still offering inflation-beating interest rates for those organisations that are happy to lock their funds away for at least 24 months. In addition to this, a few providers are offering rates that look set to stay ahead of inflation until 2022.

Business easy access savings accounts

For sole traders that are looking for an account with a low initial deposit, and the advantage of instant access, a few deals are available that offer interest rates of over 1.00%.

Top business easy access savings accounts

Product

Notice/term

Min deposit

Interest (AER)

Newcastle Building Society Newcastle Business Saver

Instant

£1

1.05% anniversary/

1.04% monthly

Saffron Building Society Business e-saver (Issue 6)

None

£10,000

1.02% yearly

Virgin Money Business Access Account Issue 6

None

£1

1.01% monthly

Al Rayan Bank Everyday Saver (Issue 2)

Instant

£500

1.00%* monthly

Aldermore Easy Access Account Issue 7

None

£1,000

1.00% anniversary or monthly

*Expected profit rate as this bank operates under Islamic finance principles

Newcastle Building Society tops the chart with its Business Saver account, currently paying a 1.05% variable AER on the anniversary of opening, while also offering a version of the account that pays 1.04% AER variable monthly. The minimum opening balance is just £1, however, account opening and management is in branch only.

Saffron Building Society offers the next highest rate of 1.02% variable yearly with its e-saver (Issue 6) for a minimum deposit of £10,000. This account can only be opened and operated online.

Virgin Money’s Business Access Account Issue 6 sits just below, with an interest rate of 1.01% variable paid monthly and can be opened with a £1 balance. This account must be opened online or in branch and operated online.

Al Rayan Bank’s Everyday Saver (Issue 2) account offers an expected profit rate of 1.00% variable paid monthly. The minimum deposit is £500, and the account can be opened and operated online, in branch, by post, by phone and via its app. This bank operates under Islamic finance principles.

Finally, Aldermore offers 1.00% variable on its Easy Access Account Issue 7. There is the choice of interest being paid monthly or on the anniversary of opening the account. The minimum deposit is £1,000.

 

Best business fixed rate bonds

Those businesses who can commit to locking funds away for the medium to long-term can expect to enjoy better rates. With the latest Bank of England quarterly Monetary Policy Report forecasting that inflation will rise to 2.1% next year, and then to 2.22% by 2022, a few of these accounts look set to keep ahead of inflation.

Best business fixed term bonds

Product    

Notice/term

Min deposit

 Interest (AER)

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

Five years

£10,000

2.50% anniversary

Al Rayan Bank Fixed Term Deposit

36 months

£1,000

2.32%* quarterly

Masthaven Bank 48 Month Flexible  Term Saver

48 months

£5,000

2.18% anniversary

Al Rayan Bank Fixed Term Deposit

24 months

£1,000

2.17%* quarterly

Union Bank of India (UK) Ltd Fixed Rate Deposit

Five years

£1,000

2.15% on maturity or yearly

*Expected profit rate as this bank operates under Islamic finance principles

The Cambridge & Counties Bank 5 Year Business, Trust & Charity Bond Issue 5 tops our comparison tables for both business and charity bonds, with an interest rate of 2.50% fixed for five years. This interest is paid on the anniversary of opening against a minimum deposit of £10,000. The account can be opened by post and operated online and by post. As is usual with bonds, no withdrawals may be made before maturity.

Al Rayan Bank currently offers two accounts that are suitable for both businesses and non-profit making organisations. The first offers a fixed 2.32% expected profit rate on the 36-month version of its Fixed Term Deposit, while the second offers a 2.17% expected profit rate fixed for a shorter term of 24 months. Both accounts require a minimum opening deposit of £1,000, with account opening and management available online, in branch, by post, by phone and via its app. No withdrawals are possible before maturity and this bank operates under Islamic finance principles.

For a minimum deposit of £5,000, Masthaven Bank is offering its 48 Month Flexible Term Saver offering a fixed rate of 2.18% for 48 months, which is paid on the anniversary of opening. This online-only account is ideal for those who would like to add to their deposit for a short period as further additions are permitted for seven days from account opening. Withdrawals, however, are not allowed.

Offering a rate of 2.15% paid either on maturity or yearly for a minimum £1,000 deposit, Union Bank of India (UK) Ltd’s Fixed Rate Deposit is a five-year fixed rate bond. This long-term saver can be both opened and operated in branch and by post and, as usual, no withdrawals are permitted.

Pick of the charity savings accounts

Charities and non-profit organisations can make the most of their funds with a specific savings account. There are several products that provide a good rate of interest with a variety of access options. In addition, there is some overlap with savings accounts specifically for businesses – meaning that both groups can find the account they need in the same product.

Top charity savings accounts

Product

Notice/term

Min deposit

Interest (AER)

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

Five years

£10,000

2.50% anniversary

Al Rayan Bank Fixed Term Deposit

36 months

£1,000

2.32%* quarterly

Redwood Bank 95 Day Business Savings Account (Issue 4)

95 days

£10,000

1.75% anniversary or monthly

Al Rayan Bank 100 Day Charities’ Notice Savings Account

100 days

£50,000

1.41%* monthly

Mansfield Building Community Deposit Maxi Account (1st Issue)

30 days

£500

1.40% yearly

*Expected profit rate as this bank operates under Islamic finance principles

The top two in our pick of charity savings accounts from Cambridge & Counties Bank and Al Rayan Bank are the same as those appearing in our best business fixed term bonds above.
The remaining three on our chart are all notice accounts. Offering quicker access than fixed term savings accounts, they pay slightly less interest, but this is a fair trade-off for those who need to be able to make limited withdrawals.

The Redwood Bank 95 Day Business Savings Account (Issue 4) offers a rate of 1.75% AER for a minimum deposit of £10,000 paid on either the anniversary of account opening or monthly. This notice saver can be opened online and by post, with withdrawals – subject to 95 days’ notice – and further additions up to an account maximum of £1 million allowed.

Al Rayan Bank appears again, but this time it’s the 100 Day Charities Notice Savings Account paying 1.41% monthly on a significant initial deposit of £50,000. However, this is unusual as it offers instant access up to 20% of the account balance, with 100 days’ notice required for more than 20%. The limit can be used in one or more withdrawals and is in place for a rolling 12-month period.

While the Community Deposit Maxi Account (1st Issue) by Mansfield Building Society pays a little less at 1.40% AER yearly, this is made up for by both the lesser notice required – 30 days – and the minimum deposit of £500. Withdrawals are permitted but those that give less notice than 30 days will result in 30 days’ loss of interest. In addition, no cash or third-party withdrawals are allowed for charities.

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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