In this article, we’re discussing how to open the best business savings accounts in the United Kingdom.
This article is part of our free series on how to open a European business bank account online, which you can access by clicking here.
Feel free to use the table of contents to jump ahead to the sections most relevant to you.
Table of Contents
- Best Business Savings Accounts
- What Types of Business Savings Accounts Are Available?
- Benefits of UK Business Savings Accounts
- How to Open Business Savings Accounts?
- Frequently Asked Questions
- Ready to Explore Your Options?
Best Business Savings Accounts
Best business savings accounts for UK companies are available from a range of UK banks and building societies. Importantly, each bank and building society will offer a range of different rates and terms depending on your deposit amount and horizon. Importantly, most business savings accounts are restricted to businesses with less than GBP 10 million annual turnover.
Businesses generating more than GBP 10 million in annual turnover will need to consider opening corporate accounts at most major UK banks.
Additionally, while available interest rates are often the first comparison that business owners look for in an account, it’s important to consider the other variables as well. We’ll discuss these other variables along with the specific type of business savings accounts available in the next section.
What Types of Business Savings Accounts Are Available?
The types of business savings accounts that are available in the United Kingdom include easy access accounts, notice accounts, and fixed rate accounts. Each of these accounts has different restrictions on when and how money can be accessed.
With this in mind, before opening an account, it’s important that business owners consider their cash requirements for the short to medium term. For example, if the business needs access to capital in the coming months, this could influence a decision to open an easy-access account.
On the other hand, if the business has excess cash available, then a fixed-term savings account may offer more benefits and allow the business to generate a positive return on its deposits.
Here is a quick look at the different types of savings accounts available:
Business Easy Access Accounts
Easy access accounts refer to savings accounts with immediate access to funds. However, in most cases, they do have limits on daily, weekly, and monthly withdrawals. Additionally, depending on the bank, they may require notice before a withdrawal and they may require funds to stay in the account after being deposited.
Business Fixed-Term Deposit Accounts
Fixed-term deposit accounts refer to accounts where the business commits to maintaining a deposit for a fixed period of time. Because of this longer-term commitment, the bank typically offers more attractive interest rates. The time periods offered will vary from bank to bank, but they can include monthly intervals or annual intervals, all the way to five years.
Business Savings Notice Accounts
Notice accounts refer to accounts where the business needs to provide the bank with advance notice before a withdrawal can be made. Like all accounts referenced, the specific terms of each notice account will vary from bank to bank. In most cases, the notice period can range from weeks to months.
Other Types of Business Savings Bank Accounts
In addition to the accounts mentioned above, UK companies can access international savings accounts as well. These international accounts include such options as certificates of deposit in the US to high-interest savings accounts in offshore banking jurisdictions.
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Benefits of UK Business Savings Accounts
The key benefits of a UK savings account include higher returns on deposits than other bank products, various savings options to match time horizon and capital requirements, and continued liquidity in case of an emergency or short-term cash needs.
Benefits of Opening a Business Bank Account (Savings Account)
- Higher interest rates than other bank products
- Multiple savings account options
- Ongoing Access to Funds
How to Open Business Savings Accounts?
To open business savings account for your UK company, you will need to navigate the account opening requirements of each bank. If you are operating a resident company, this process will be much more straightforward for you. However, if you are operating a non-resident company, you will face a number of challenges.
For example, non-residents looking to open accounts will struggle to meet requirements for a local signatory, local address, local phone number, and possibly showing up in person to complete the account opening process.
Requirements for Opening a Business Account
- UK proof of address
- UK phone number
- Local manager (or account signatory)
- Qualifying deposit
- Corporate documents
- Documentation for all shareholders and directors
Frequently Asked Questions
Below are three of the most common questions that we receive from people looking into the best business savings account. If you have further questions you would like answered, don’t hesitate to get in touch with us directly.
How to Choose the Best Business Savings Account?
To choose the best business savings account, you need to consider the specific time horizon that you are comfortable committing to for your business. This initial consideration will tell you whether you should consider an easy-access account, a fixed deposit account, or a notice account. As a second level of consideration, you can then compare the specific interest rates available from each bank.
Where Can I Open a Business Savings Account?
You can open a savings account at most major UK banks and building societies. However, it’s important to note that the specific time it can take to open an account can vary. Many UK banks are still slow to process account opening applications, and as a result, it can take many weeks to get approved.
Who Offers the Best Business Savings Bank Accounts?
The bank that offers the best savings bank accounts for one entity may not be the best for others. That’s why we encourage prospective customers to directly compare the offering from all banks before deciding where to open. This includes comparing interest rates, penalties, time horizon, and cash requirements of the business before choosing a bank or building society to open with.
Ready to Explore Your Options?
If you would like assistance navigating your banking options at home or abroad, we can help.
You can access GlobalBanks IQ, our international banking intelligence platform, in just a few clicks. Unlock our bank database, individual bank profiles, account opening strategies and reports, banker scripts, and more.
But, if you want a 100% personalized account opening service that taps into our team’s expertise and provides direct banker introductions, you can get started with GlobalBanks Insider.
Of course, if you have any questions, please contact us directly.