Key takeaways
- Business savings rates remain competitive, with many accounts offering close to 4%, making it worthwhile to move surplus cash out of low-interest current accounts.
- The best business savings accounts balance interest rates with access, whether that’s instant access, notice, or fixed-term options.
- Notice and fixed-rate accounts typically offer higher returns, but require businesses to lock funds away or give advance notice.
- Corporate savings accounts can offer better rates and more tailored features, but have minimum requirements that exclude most established businesses.
- Choosing the right account is not just about the headline rate. It should align with your cash flow needs, access requirements, and overall cash management strategy.
If your business has surplus cash, now is a good time to review where you keep it. Moving funds into a high-interest business savings account could be one of the simplest ways to make your money work harder in 2026.
After a long period of historically low interest rates, the Bank of England base rate rose sharply between 2022 and 2024, reaching a peak of 5.25%. While rates have eased slightly since then, they remain significantly higher than in the previous decade, meaning many business savings accounts now offer competitive returns of close to 4%.
Because most banks use the Bank of England base rate as a benchmark when setting their own savings rates, businesses with healthy cash reserves have a valuable opportunity to earn interest on money that might otherwise sit idle in a current account.
In this guide, we compare some of the best business savings accounts in the UK, explain the different types available, and answer common questions to help you choose the right option for your business.
What are business savings accounts?
A business savings account lets you store your money away from your current account where it can earn interest.
Business savings accounts are provided by authorised and regulated financial institutions, the same as business current accounts.
Unlike current accounts, savings accounts can’t be used for transactions, such as paying suppliers or salaries. They’re a separate and specific space for you to save your money and earn some interest, for either a fixed or ongoing period.
Discover the advantages of a business savings account.
What makes a great business savings account?
After more than a decade of historically low interest rates, the savings market has become far more competitive in recent years. With the Bank of England base rate rising significantly since 2022, many business savings accounts now offer meaningful returns, making it worthwhile for companies to review where they hold surplus cash.
What makes for a great savings account is subjective, but it should be a mix of:
-
Interest rate on offer
-
Accessibility and ease of use
-
Transaction and balance limits
-
Customer service from start to finish
For many businesses, the interest rate is their main consideration. That’s understandable, but it’s not to say that other factors are irrelevant. The best account for you will blend high returns with your non-negotiable needs.
Types of business savings account compared
Savings accounts come in different shapes and sizes, offering unique benefits for businesses and suiting as many situations as possible.
There are three account types that we’ll focus on in this article:
-
Instant access/easy access
-
Notice
-
Fixed-term/fixed-rate accounts
What is an instant access or easy access account?
You can make withdrawals and deposits without restrictions with these accounts. At most, you might have a maximum number of withdrawals you can make in a year.
These accounts typically use a variable interest rate. In other words, the rate can go up and down, so your returns could change from one month to the next.
What is a notice account?
To make a withdrawal, you have to give the bank notice within a certain timeframe (eg. 95 days) to access your funds. See our 95 day notice deposit account for an example.
Notice accounts generally use variable interest rates. We've also explained how to choose between notice vs. instant access savings accounts, if you want to understand more.
What is a fixed-term or fixed-rate account?
These accounts lock your savings away for a set period of time, guaranteeing your interest rate in return. You typically can’t make withdrawals or further deposits until the term is complete.
The three best instant access business savings accounts available in the UK
First up, let’s review some of the best instant access accounts on the market for SMEs today.
‘Best’ is a subjective word, but we’ve chosen the accounts with the highest interest rates on offer. The best account for you might not be on this list.
|
Provider |
Interest rate (AER)* |
Detail |
Minimum and maximum balance |
|
Allica Bank |
4.08% (variable)* |
Includes three bonus rates totalling 1.25%. Only available with a Business Rewards Account |
£1 - £5 million |
|
Cynergy Bank |
3.90% (variable) |
Interest paid monthly |
£10,000 - £10,000,000 |
|
United Trust Bank |
3.90% (variable) |
Includes a 0.90%, 12-month introductory bonus rate |
£5,000 - £100,000 |
Rates correct as at 06 May 2026, but please check rates and eligibility with the provider.
The three best notice business savings accounts available in the UK
Notice accounts are a fine choice if you know you won’t need to access your savings instantly. You might use one of these accounts to store savings for an upcoming project with a set payment deadline or ahead of paying a corporation tax bill.
As a general rule, the longer the notice period, the higher the interest rate a bank will offer you.
Again, our filter for “best” in this table is the highest interest rate, with the caveat that some shorter notice accounts may provide higher rates. That might not actually be the best account for you, so please do your own research.
|
Provider |
Interest rate (AER) |
Notice period |
Minimum and maximum deposit |
|
Aldermore |
4.00% (variable) |
95–day notice |
£1,000 - £1 million |
|
Cambridge & Counties Bank |
3.90% (variable) |
95-day notice |
£10,000 - £3 million |
|
Hampshire Trust Bank |
3.87% (variable) |
95-day notice |
£5,000 - £750,000 |
|
Allica Bank |
3.70% (variable) |
180-day notice |
£20,000 - £2 million |
Rates correct as at 06 May 2026, but please check rates and eligibility with the provider.
The best fixed-term business savings accounts available in the UK
Fixed-rate, fixed-term, business bond - there are a few names for what is, ultimately, the same thing across banks. You deposit your money with the bank and can’t access it again until the agreed term is complete. In exchange, you get a guaranteed interest rate.
We’ve split the list up between short-term accounts (shorter than one year) and longer-term accounts (one year and over). This is just to keep things readable for you, as there are lots of accounts to get through!
Three shorter-term (under one year) accounts
If you’re a few months away from needing a certain tranche of your money, a short-term fixed rate account can be a great choice.
You’ll know exactly what you’ll get back at the end of the term and can rest easy knowing your money is working hard for you in the background.
|
Provider |
Interest rate (AER) |
Fixed period |
Minimum and maximum deposit |
|
Union Bank of India (UK) |
4.22% |
Nine months |
£1,000 - £1 million |
|
Hampshire Trust Bank |
4.10% |
Six months |
£5,000 - £750,00 |
|
ICICI Bank UK |
4.10% |
Six months |
£0 - £1 million |
|
Allica Bank |
3.86% |
Six months |
£20,000 - £2 million |
Rates correct as at 06 May 2026, but please check rates and eligibility with the provider.
Three medium-term (one to two years) accounts
If you can squirrel away some funds for over a year, there are good accounts out there for you.
If rates drop in the coming months, an account you open now (with a longer term like these) could keep you earning higher returns. There are no guarantees, but it's something to consider.
|
Provider |
Interest rate (AER) |
Fixed period |
Minimum and maximum deposit |
|
UBL UK |
4.68% |
One year |
£2,000 - £1 million |
|
Union Bank of India (UK) |
4.45% |
One year |
£1,000 - £1 million |
|
ICICI Bank UK |
4.40% |
One year and two year |
£0 - £1 million |
|
Allica Bank |
4.00% |
12 months |
£20,000 - £2 million |
Rates correct as at 06 May 2026, but please check rates and eligibility with the provider.
Three longer-term (two years or more) accounts
If you’re in a position to save some money for an even longer timeframe, then you’ll be pleased to know that some banks offer fixed accounts up to five years.
|
Provider |
Interest rate (AER) |
Fixed period |
Minimum and maximum deposit |
|
ICICI Bank UK |
4.40% |
Three years |
£0 - £1 million |
|
iFast Global Bank |
4.30% |
48 months and 60 months |
£1 - unlimited |
|
Marsden Building Society |
4.22% |
Until 31/05/2031 |
£5,000 - £250,000 |
|
Allica Bank |
3.80% |
24 months |
£20,000 - £2 million |
Rates correct as at 06 May 2026, but please check rates and eligibility with the provider.
Business savings rates: what to expect in 2026
Business savings rates remain elevated compared to the previous decade, following the sharp rise in the Bank of England base rate between 2022 and 2024. While rates may fluctuate, many providers continue to offer around 4% or more on business savings, particularly for notice and fixed-term accounts.
The exact rate you can access will depend on factors such as your deposit size, access requirements, and the type of account you choose. For businesses holding significant cash reserves, even small differences in rates can translate into meaningful returns over time.
Providers like Allica offer competitive rates tailored specifically for established businesses.
Best business savings account interest rates
The best business savings account interest rates are typically found in accounts that offer less flexibility. Notice accounts and fixed-term products often outperform instant access options on rates, as banks reward businesses for committing their funds for longer periods.
However, the highest rate is not always the best choice. Businesses should balance interest rates with access needs, especially if cash may be required for operational costs or investment opportunities.
It’s also worth considering providers like Allica Bank, who combine competitive rates with features designed specifically for established businesses.
Ready to make your business savings work harder?
If your business is holding surplus cash, choosing the right savings account can make a real difference to your returns. With rates still relatively strong, now is a good time to review your options and ensure your money is working as hard as possible.
Allica Bank’s business savings accounts are designed specifically for the businesses that are so important for the UK economy. We offer competitive rates and a wide range of accounts, along with a dedicated relationship manager for every customer who opens a current account or takes out a loan.
It's business banking how it used to be – just better.
*Rate includes standard rate of 2.83% 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 and a 0.25% Welcome Boost for 3 months for new customers who deposit £50,000+ into their Savings Pot within 14 days. Rates correct as of 19th December 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.
** Cashback is variable and based on card spend. Exclusions apply. See a full list of limits and fees here.
Links were live and information was correct at the time of writing the article.
'AER' stands for 'annual equivalent rate' and is designed to make it easy for you to compare savings products. It illustrates what the interest rate would be if interest was paid and compounded once each year.
Disclaimer: This is information – not financial advice or recommendation
The content and materials featured in 'Comparing the best business savings accounts in 2025' 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.
