By Chandraketu Tripathi · Updated April 2026 · Fact-checked Business Finance · Updated April 2026With business savings rates still significantly above their pre-2022 levels, keeping your company cash in the right account can make a meaningful difference to your bottom line. A limited company with £100,000 in a current account earning 0.1% loses approximately £4,400 per year compared to the best business savings rates available in April 2026.
Easy Access Business Savings AccountsEasy access business savings accounts allow you to deposit and withdraw funds at any time, making them ideal for working capital and emergency reserves. The best rates in April 2026 are available from challenger banks rather than the high street — Allica Bank leads with 4.55% AER on balances from £10,000. 💡 Business savings account interest counts as business income and is subject to Corporation Tax at your applicable rate (19% for profits under £50,000, up to 25% for profits above £250,000). Factor this into your effective rate when comparing accounts. Fixed Rate Business Savings AccountsFixed rate business bonds offer higher rates in exchange for locking your money away for a set term — typically 6 months to 3 years. With rates forecast to continue falling as the Bank of England cuts further in 2026, locking in a competitive rate now makes strategic sense for cash you will not need for 12 months or more. Who Can Open a Business Savings Account?Most business savings accounts are available to limited companies, limited liability partnerships (LLPs), sole traders and charities registered in the UK. Requirements vary by provider — some require you to have a UK business current account with the same bank, while others accept businesses banking elsewhere. ⭐ OUR VERDICT For most SMEs with surplus cash, Allica Bank's easy access business account at 4.55% AER offers the best combination of rate and flexibility. For cash you can lock away for 12 months, a fixed-rate bond from Recognise Bank or Aldermore will typically pay 0.5-0.8% more. Compare your options before 5 April each tax year to ensure interest is being earned in the most tax-efficient structure for your business. Frequently Asked QuestionsIs business savings account interest taxable? Yes. Interest earned by a limited company on its savings is treated as business income and subject to Corporation Tax. The rate is 19% for companies with profits up to £50,000, rising to 25% for profits above £250,000. Sole traders pay income tax on business savings interest at their personal tax rate. Can a sole trader open a business savings account? Yes. Most providers offer business savings accounts to sole traders, though some require you to have a dedicated business current account. Some accounts available to sole traders include accounts from Aldermore, Shawbrook and Metro Bank. Is FSCS protection available on business savings? Yes. Business savings deposits are eligible for FSCS protection up to £85,000 per authorised institution. However, some categories of large companies are excluded — check the FSCS website for eligibility criteria specific to your business type. How much notice do I need to give for a notice account? Notice periods vary by account — common terms are 32, 60 or 95 days. You must give notice in advance of any withdrawal, so these accounts are not suitable for funds you may need at short notice. In return, they typically pay higher rates than instant access accounts. |
Best Business Savings Accounts UK 2026: Highest Rates Compared
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