Are online-only business savings accounts safe for large deposits?

You’ve probably seen adverts offering attractive rates on online-only business savings accounts, but you might be wondering, “Are they safe for large deposits?” 

This is a fair enough question, especially when it comes to something as important as your savings.

Let’s look at what really matters when it comes to online savings. 

How online-only business savings accounts work 

Online-only business savings accounts are managed entirely through digital platforms, with no physical branches. That means everything from opening your account to transferring money or checking your interest rate happens online – anytime from anywhere.

By operating digitally without in-person locations, these providers often have lower overheads — allowing them to pass savings on to customers. Many offer competitive interest rates, minimal fees, and simplified processes that suit fast-paced businesses. 

These accounts typically come with: 

• Higher interest rates than traditional business banks
• Lower operating costs due to reduced overheads 
• 24/7 access via mobile or desktop – no waiting for branch hours

For small businesses, limited companies, or sole traders, the convenience and cost savings of online accounts can be a strong fit – as long as the provider is authorised and offers proper deposit protection. We’ll cover that next. 

Regulatory protections for online-only accounts 

Not all savings accounts are created equal. To be confident your business deposits are safe, it’s essential to choose a provider that’s fully regulated in the UK. 

Legitimate online-only business savings accounts are offered by firms authorised by both the Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA). These regulatory bodies ensure that banks operate responsibly, meet capital requirements, and follow strict standards to protect customers

If the provider is covered by the Financial Services Compensation Scheme (FSCS), eligible business deposits are protected up to £85,000 per institution. That means if your bank were to collapse, the FSCS aims to refund your money within seven days – no application required in most cases (although there are specific eligibility requirements to be aware of). 

To check if your provider is covered: 

• Use the FSCS bank checker to verify protection 
• Look them up on the FCA register to confirm regulatory status

These simple steps help ensure your business savings are held by an authorised financial services firm and stay protected. 

Key security features to look for 

When dealing with large deposits, security isn't a ‘nice-to-have', it's essential. The good news is that most FCA-regulated online savings providers take it seriously.

Start by looking for multi-factor authentication. It adds an extra layer of defence beyond just a password, helping prevent unauthorised access. Encryption matters too, providers should use strong standards like 256-bit SSL or TLS to keep your data safe while it’s in transit. 

You’ll also want to see evidence of regular third-party security audits. This shows the provider isn’t just ticking boxes, they’re actively testing their systems for weaknesses. And finally, real-time fraud alerts and login notifications can help catch suspicious activity early, before it becomes a bigger issue. 

The right business savings account provider should make these features standard, not optional. 

Common security risks and how to manage them 

Even with strong protections in place, online-only accounts aren’t immune to risk. The most common threat we see? Phishing emails. These scams can look convincing and often trick users into handing over login details or clicking unsafe links. 

Cyberattacks are another concern. Malware, ransomware, and other threats can disrupt access or compromise sensitive business data. No matter the size of your company, taking a few preventative steps can make a big difference. 

To reduce risk: 

• Train employees to spot suspicious emails, fake websites, and unexpected login requests 
• Limit account access to essential team members – not everyone needs full permissions 
• Keep anti-virus software up to date across all business devices 
• Consider taking out cyber insurance for added peace of mind 

A few small changes now, can help protect your business from big problems later. 

Trust signals: how to evaluate an online-only bank 

Choosing the right business savings provider starts with trust. A credible provider should make it easy to see how they’re regulated and how your money is protected.

Look for firms that clearly show FCA and PRA authorisation and confirm whether FSCS protection applies. 

Before opening an account, take time to assess how transparent and accessible the provider is. Reliable indicators include: 

• Clear product details written in plain English 
• Customer support that’s easy to reach when you need help 
• Genuine reviews and testimonials from other business customers 
• Straightforward guidance on how your deposits are safeguarded 

The right provider will earn your confidence before you ever move a penny. 

We’ve covered more on the how you can choose a digital-first bank based on your needs in: Digital business banking for SMEs: how tech-first banks are changing the game

Practical tips to maximise safety of large deposits 

Managing large balances means thinking strategically about where and how you store your money. FSCS protection only covers up to £85,000 per eligible business, per bank so anything above that could be at risk if your provider fails. 

To protect your savings: 

• Spread deposits across multiple FSCS-covered banks to stay within the limit 
• Check account security settings regularly, including password strength and login alerts 
• Use secure business devices and avoid logging in over public Wi-Fi networks 
• Train your team on safe login habits, recognising phishing attempts, and keeping passwords private 

A few small steps can go a long way in keeping your business deposits safe – especially when the sums are significant. 

How to assess if a business savings provider is reliable before you make a deposit 

When something goes wrong, whether it’s a login issue, suspected fraud, or delayed access to funds, how a bank responds matters more than the headline rate. FCA-regulated banks are required to have clear escalation procedures, but the quality of support can vary widely. 

Many online-only providers now offer live chat, dedicated business support, or even named contacts. That can make a big difference when you're managing large deposits. 

Before opening a business savings account, take time to: 

• Read reviews focused on how issues were handled, not just interest rates 
• Check how the provider has dealt with outages or fraud in the past 
• Confirm FSCS protection and look them up on the FCA register 

Choosing a provider isn’t just a financial decision, it’s about trust, service, and how well they’ll support you if the unexpected happens. 

Final Thoughts

Online-only business savings accounts have come a long way. They now offer not just convenience and competitive rates, but also strong security when backed by the right protections.  

By choosing a fully regulated provider and following simple best practices, you can confidently manage even large deposits online. 

Give your business savings the structure they deserve 

Allica’s Savings Pot is an exclusive feature of our Business Rewards Account, offering up to 4.33% AER (variable),* with no account opening fees and the flexibility of instant access. It’s built to help your business separate savings from spending, while still earning interest every month.

You’ll also get support from a dedicated relationship manager who understands what growing businesses need. 

If you're looking for a secure and flexible way to grow your savings, sign up to our Business Rewards Account where you will have exclusive access to our Savings Pot.

Take control of your surplus cash.

*Rate includes standard rate of 3.33% AER (minimum balance applies) plus a 0.5% boost each month if you make 15 bank transfers out of the account in the previous month, and a 0.5% boost for six months if you complete a switch with CASS. Rates correct as of 9th May 2025. ‘AER’ stands for Annual Equivalent Rate and illustrates what the interest rate would be if interest was paid and compounded once each year. Subject to eligibility – see Savings Pot Key Product Information for more details.

Links were live and information was correct at the time of writing the article.

Disclaimer: This is information – not financial advice or recommendation

The content and materials featured in this article are for your information and education only, and are not intended to take into consideration any particular recipients’ financial situation. The product details and interest rates referred to are correct at the time of writing.

The information does not constitute financial advice or recommendation and should not be considered as such. Allica Bank will not accept any liability for any loss, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information.