nigel woollsey

Nigel Woollsey

Online Writer
Published: 01/09/2019

The business savings market is seeing lots of competition, with many providers looking to attract new business savings accounts and deposits. Businesses can earn the best interest returns from fixed rate bonds. However, the very best rates require a lengthy five-year commitment, and with a difference of only 0.18% between these and two-year rates, it could be questionable if the greater commitment is worth the return.

Meanwhile, business savings accounts with instant access all sit at around 1%, with the top account requiring only a £1 deposit.

Which bank has the best business savings account?

Business savers are currently enjoying a wide range of options when it comes to both easy access and longer-term savings accounts. As is similarly the case in the personal finance area, it is the smaller, less well-known names and so-called “challenger banks”, including several digital-only providers, that offer the very best in terms of returns. However, businesses can be hesitant to invest with names that they may not be immediately familiar with – and in doing so may miss out on chart-topping levels of interest.

The best business fixed rate bonds for sole traders

Provider Account Term Min investment Rate AER

Cambridge & Counties Bank

5 Year Business, Trust and Charity Bond Issue 5

5 years

£10,000

2.50%

Masthaven Bank

5 Year Fixed Term Bond

5 years

£5,000

2.35%

Al Rayan Bank

Fixed term Deposit

3 years

£1,000

2.42%*

ICICI Bank UK

Fixed Deposit

3 years

£1

2.15%

Al Rayan Bank

Fixed term Deposit

2 years

£1,000

2.32%*

*Expected profit rate

Top of the business bonds charts this week is the 5 Year Bond offered by the Cambridge & Counties Bank, paying 2.50% AER on balances of £10,000 or more. Those with a slightly smaller investment in mind can take advantage of Masthaven Bank’s five year bond, which pays a slightly lower rate of 2.35% AER, but accepts a smaller minimum deposit of £5,000.

Al Rayan Bank appears twice in our best business bonds tables with its top offer of an expected profit rate of 2.42% for a three year bond, outdoing some five year options. For those looking for a shorter-term business investment, Al Rayan Bank has a two year bond option paying an expected profit rate of 2.32% over just 24 months. Both of Al Rayan Bank’s bonds have a minimum deposit of £1,000 and pay interest quarterly.

Finally, ICICI Bank UK is offering a three year fixed bond that pays 2.15% for a minimum deposit of just £1.

For those looking for a shorter term than those given in the table above, Al Rayan Bank’s Fixed Term Deposit pays an expected profit rate of 2.07% for a minimum investment of £1,000 over a 12-month period. This bank operates under Islamic finance principles.

The best easy access business savings rates for sole traders

Provider Account Min investment  Rate AER

Newcastle Building Society

Newcastle Business Saver

£1

1.05%

Virgin Money

Business Access Account Issue 6

£1

1.01%

Aldermore

Easy Access Account Issue 7

£1,000

1.00%

Saffron Building Society

Business e-saver (Issue 6)

£10,000

1.02%

SBI UK

Business Savings Account

£10,000

1.00%

The top rate for easy access business savings comes from Newcastle Building Society, offering a decent return on its Newcastle Business Saver. It pays 1.05% and offers annual or monthly interest options. This account can be opened with just £1.

Next is Virgin Money who also offers an account requiring a minimum deposit of £1, albeit at a slightly reduced rate of 1.01%. Aldermore’s easy access account follows, paying 1.00% on a minimum of £1,000 deposit, while both Saffron Building Society and SBI UK are paying 1.02% and 1.00% respectively for deposits of £10,000 or more.

Why choose an easy access business savings account?

Easy access business accounts are designed to give you instant access to your cash. They provide you with a better rate of interest than your business bank account and, unlike a business bond, offer you quick access to your funds.

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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