The Best Business Savings Accounts | moneyfacts.co.uk

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Derin Clark

Derin Clark

Online Reporter
Published: 16/04/2021

Business savings accounts are good options for businesses that have extra funds that are not currently needed. Businesses who know that the money will not be needed for a long period of time, would likely be better choosing a five year business bond to get the best possible rates. Businesses able to lock their money away for a short period of time will find the best rates are available in the one year fixed business bond charts. Meanwhile, businesses that think they will need access to their funds would probably be best considering an easy access business account.

Here we’ve highlighted the best rates available in the five year, one year and easy access business charts. Savers should be aware that although correct at the time of publishing, saving rates can change at any time.

The best five year business bond

Provider Account Term Rate AER  
Cambridge & Counties Bank Business Trust and Charity Bond Issue 12 Five years 1.15% Find out more
UBL UK 5 Year Fixed Deposit Business Account Five years 1.10% Find out more
Union Bank of India (UK) Ltd Fixed Rate Deposit Five years 0.90% Find out more

Business owners happy to lock their money into a five-year term will find that Cambridge & Counties Bank currently offers the highest rate in the chart, with its five-year Business Trust and Charity Bond Issue 12 paying 1.15% gross on its anniversary. It requires a minimum investment of £10,000 and is available to limited companies, limited liability partnerships, not for profit organisations, partnerships, public limited companies, sole traders, associations, charities, clubs, friendly societies, schools/colleges, and trust fund arrangements. Further additions and withdrawals are not permitted. It can be opened by post before becoming post and internet-operated.

UBL UK pays 1.10% gross yearly on its 5 Year Business Fixed Term Deposit on a £2,000 minimum investment. It is available to limited companies, limited liability partnerships, partnerships, public limited companies, sole traders, accountants, associations, clubs, embassies, estate agents, executors, solicitors and trust funds. Further additions are not permitted, however earlier closure of the bond is allowed at the manager’s discretion and subject to 365 days’ loss of interest. The bond can be both opened and operated by post and in branch. There is a version of this account that pays interest monthly at a slightly lower gross rate of 1.09%, and one that pays interest on maturity at a higher gross rate of 1.12%.

Union Bank of India (UK) Ltd takes third place in our chart with its five-year Fixed Rate Deposit paying 0.90% gross yearly or on maturity. A minimum investment of £1,000 is needed to open this branch and postal-operated bond, which is available to limited companies, limited liability partnerships, not for profit organisations, partnerships, public limited companies, sole traders, accountants, associations, AVC trustees, charities, churches, clubs, co-operatives, estate agents, friendly societies and trust funds. Further additions and withdrawals are not permitted.

Compare the best five year business bonds

All the rates available can be found on our five year fixed rate business bonds chart.

The best short-term business bond

Provider Account Term Rate AER  
Redwood Bank 1 Year Business Savings Bond (Issue 5) One year 0.090% Go To Provider's Site
Masthaven Bank 18 Month Flexible Term Saver 18 months 0.80% Find out more
Shawbrook Bank 1 Year Fixed Rate Business Savings Bond - Issue 14 One year 0.75% Go To Provider's Site

 

Redwood Bank and Masthaven Bank currently offer the best rate for a one-year fixed rate business bond.

Redwood Bank offers its 1 Year Business Savings Bond (Issue 5) paying 0.80% gross either on its anniversary or monthly. This bond requires a minimum investment of £10,000 and is available to limited companies, limited liability partnerships, partnerships, sole traders, associations, charities, clubs and friendly societies. It permits further additions within 14 days of account opening, after which there is no access to funds prior to maturity. Businesses can apply online or by post, after which the bond becomes phone, post and internet-operated.

Offering the same rate is Masthaven Bank, with 18 Month Flexible Term Saver paying 0.80% gross on its anniversary. This internet-operated bond requires a £5,000 minimum investment and further additions are permitted for seven days from account opening via a nominated account, but earlier access is not permitted. It is available to limited companies and sole traders.

Shawbrook Bank completes the top three with 1 Year Fixed Rate Business Savings Bond – Issue 14 paying 0.75% gross monthly or on maturity. It can be opened online or by post with a minimum investment of £5,000, after which it becomes phone or postal-operated. It permits further additions while the issue remains open, but withdrawals are not allowed. It is open to limited companies, limited liability partnerships, partnerships and sole traders.

 

Compare the best one year business bonds

All the rates available can be found on our one year fixed rate business bonds chart.

The best business easy access account

Provider Account Term Rate AER  
Hanley Economic Building Society Corporate Tracker - Issue 6 Instant 0.55% Find out more
Aldermore Easy Access Account Issue 8 None 0.50% Go To Provider's Site
Shawbrook Bank Easy Access Business Account - Issue 7 None 0.50%  Go To Provider's Site

Currently at the top of the business easy access saving account chart is Hanley Economic Building Society, which pays 0.55% gross yearly on its Corporate Tracker – Issue 6 from a minimum investment of £1,000. Further additions are permitted, as are withdrawals, and businesses can open and operate the account by post and in branch. It’s available to limited companies, partnerships, accountants, registered charities, pension fund managers and solicitors, and the gross rate is guaranteed to be at least 0.45% above Bank base rate.

Next up is Aldermore, with Easy Access Account Issue 8 paying 0.50% gross monthly or on its anniversary. It requires a minimum investment of £1,000 with further additions and withdrawals welcome at any time, and although it can only be opened online, it can then be managed by post and phone as well. It is available to limited companies, limited liability partnerships, not for profit organisations, partnerships, public limited companies, sole traders, accountants, estate agents, financial intermediaries, schools/colleges and solicitors.

The same rate of 0.50% gross is offered by Shawbrook Bank on its Easy Access Business Account – Issue 7, which pays interest monthly or on its anniversary from a minimum investment of £1,000. It allows further additions and withdrawals via a nominated account. This account is available to limited companies, limited liability partnerships, partnerships and sole traders. It can be opened online or by post before becoming post or phone-operated.

Compare the best easy access business accounts

All the rates available can be found on our easy access business account chart.

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. Links to third parties on this page are paid for by the third party. You can find out more about the individual products by visiting their site. Moneyfacts.co.uk will receive a small payment if you use their services after you click through to their site. All information is subject to change without notice. Please check all terms before making any decisions. This information is intended solely to provide guidance and is not financial advice. Moneyfacts will not be liable for any loss arising from your use or reliance on this information. If you are in any doubt, Moneyfacts recommends you obtain independent financial advice.

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