Fixed Rate Business Savings Accounts
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Compare and check the latest Fixed Rate business savings accounts rates using our quick and simple table below.
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Fixed Rate Business Savings Accounts
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Interest Rate
4.60% AER fixed -
Minimum Deposit
£1000 -
Maximum Deposit
£1M -
Access Type
Fixed Rate1 Year Fixed Rate -
Access Methods
App/Branch
Product Features
- Open in under 15 minutes
- Nominate a business current account for deposits and interest, no need to change provider
Eligibility Criteria
- Minimum Initial Deposit £1000
- Over 18 years of age, UK resident and only tax resident in the UK – this applies to all controlling persons, significant owners and directors
- A limited or unlimited company (Aldermore do not provide accounts for limited partnerships, limited liability partnerships, partnership, sole trader, clubs, societies or charities)
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Interest Rate
4.33 AER -
Minimum Deposit
£1 -
Maximum Deposit
£ 1 Million -
Access Type
Easy Access -
Access Methods
App/Online
Product Features
- Eligible deposits up to £85,000 protected by the FSCS
- Interest is paid into the saver monthly
- Unlimited access to your money whenever you need
- Open a free Tide business current account at the same time
- No limits or fees on withdrawals
Eligibility Criteria
- Account holders must be a UK resident aged 18 or over
- You are a UK sole trader or freelancer or your business is registered with Companies House as a limited company or partnership
Earn 4.33% AER variable interest, paid monthly on savings
Flexible, easy access to savings
No limits or fees on withdrawals
Flexible, easy access to savings
No limits or fees on withdrawals
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Interest Rate
4.05% AER fixed -
Minimum Deposit
£1000 -
Maximum Deposit
£1M -
Access Type
Fixed Rate6 Month Fixed Rate -
Access Methods
App/Branch
Product Features
- Nominate a business current account for deposits and interest, no need to change provider
- Open in under 15 minutes
Eligibility Criteria
- Minimum Initial Deposit £1000
- Over 18 years of age, UK resident and only tax resident in the UK – this applies to all controlling persons, significant owners and directors
- A limited or unlimited company (Aldermore do not provide accounts for limited partnerships, limited liability partnerships, partnership, sole trader, clubs, societies or charities)
-
Interest Rate
4.00% AER -
Minimum Deposit
£1 -
Maximum Deposit
£10m -
Access Type
Easy Access -
Access Methods
Online
Product Features
- Apply for an account in as little as 10 minutes with a simple streamlined application process
- Start to save with just £1, and access your money whenever you like
- Eligible deposits are protected by the FSCS, up to £85,000
- Access for up to 10 people
Eligibility Criteria
- Must be a sole trader, partnership, limited liability partnership or limited company with up to 10 partners
- Your business is based in the UK and registered at Companies House
- All partners are 18 or over & UK residents
-
Interest Rate
3.66% AERInterest is calculated daily and paid monthly or annually -
Minimum Deposit
£1000 -
Maximum Deposit
£1M -
Access Type
Easy Access -
Access Methods
App/Branch
Product Features
- Open in under 15 minutes
- Nominate a business current account for deposits and interest, no need to change provider
Eligibility Criteria
- Minimum Initial Deposit £1000
- Over 18 years of age, UK resident and only tax resident in the UK – this applies to all controlling persons, significant owners and directors
- A limited or unlimited company (Aldermore do not provide accounts for limited partnerships, limited liability partnerships, partnership, sole trader, clubs, societies or charities)
-
Interest Rate
3.00% AER -
Minimum Deposit
£1 -
Maximum Deposit
£2m -
Access Type
Easy Access -
Access Methods
App/Online
Product Features
- FSCS for eligible deposits up to £85,000
- Custom pricing for larger businesses
- Open an International Revolut Business account at the same time
Eligibility Criteria
- Available for limited companies, PLCs, LLPs, Partnerships & unlimited companies
- Currently available for companies registered in and with a physical presence within the European Economic Area (EEA), Switzerland, UK and US
- Must open a Revolut Business Enterprise business bank account to access savings rate
-
Interest Rate
2.50% AER -
Minimum Deposit
£1 -
Maximum Deposit
£1m -
Access Type
Easy Access -
Access Methods
App/Online
Product Features
- FSCS for eligible deposits up to £85,000
- Account fee £79 per month
- Open an International Revolut Business account at the same time
Eligibility Criteria
- Available for limited companies, PLCs, LLPs, Partnerships & unlimited companies
- Currently available for companies registered in and with a physical presence within the European Economic Area (EEA), Switzerland, UK and US
- Must open a Revolut Business Scale business bank account to access savings rate
-
Interest Rate
2.00% AER -
Minimum Deposit
£1 -
Maximum Deposit
£500k -
Access Type
Easy Access -
Access Methods
App/Online
Product Features
- FSCS for eligible deposits up to £85,000
- Account fee £19 per month
- Open an International Revolut Business account at the same time
Eligibility Criteria
- Available for limited companies, PLCs, LLPs, Partnerships & unlimited companies
- Currently available for companies registered in and with a physical presence within the European Economic Area (EEA), Switzerland, UK and US
- Must open a Revolut Business Grow business bank account to access savings rate
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Fixed Rate Business Savings Accounts Guide
In the dynamic world of business finance, fixed rate business savings accounts have become a popular choice for UK businesses looking to maximize returns on surplus funds. This guide explores the intricacies of fixed rate business savings accounts, helping businesses make informed decisions in their financial planning.
What is a Fixed Rate Business Savings Accounts?
A fixed rate business savings account is a type of account where funds are deposited for a predetermined period at a fixed interest rate. The rate remains constant, irrespective of market fluctuations, offering stability and predictability in returns.
Purpose and Benefits
The primary purpose of these accounts is to provide businesses with a secure and stable investment option. Key benefits include:
- Guaranteed Returns: Interest rates are fixed for the duration of the term, ensuring predictable returns.
- Financial Planning: Helps in budgeting and forecasting with fixed interest income.
- Risk Mitigation: Shields businesses from interest rate fluctuations.
Key Features of Fixed Rate Accounts
- Interest Rates: Fixed rate accounts usually offer higher interest rates compared to instant access or notice accounts, compensating for the lack of liquidity.
- Term Length: The term can vary, commonly ranging from one year to five years, with interest rates generally higher for longer terms.
- Deposit Limits: These accounts often have minimum and maximum deposit limits. It’s crucial to check these limits to ensure they align with your financial capabilities.
- Access to Funds: Funds are typically locked in for the term of the account. Early withdrawal often results in penalties or loss of interest.
- Tax Implications: Interest earned on these accounts may be subject to taxation. Businesses should consider this when calculating net returns.
Comparing Fixed Rate Business Savings Accounts
- Assessing Different Banks: Each bank offers unique terms and interest rates. It’s vital to compare offerings from various banks to find the most suitable account.
- Understanding Terms and Conditions: Carefully read the terms and conditions, focusing on early withdrawal penalties, interest payment frequencies, and renewal options.
- Inflation Considerations: Inflation can erode the real value of returns. Consider the current and projected inflation rates when choosing the term length.
Opening a Fixed Rate Business Savings Account
- Eligibility: Ensure your business meets the bank’s eligibility criteria, which may include business size, turnover, and operational history.
- Required Documentation: Typically includes business registration documents, proof of identity and address of the business owners or key stakeholders.
- Application Process: Applications can usually be made online, over the phone, or in-branch, depending on the bank’s offerings. Our comparison tables provide links so that you can apply directly to the provider of your chosen account – which means you can open an account as quickly and conveniently as possible.
Strategic Use of Fixed Rate Accounts
- Diversification: Diversifying your business’s savings across different account types can balance accessibility and higher returns.
- Laddering Strategy: A laddering strategy involves opening multiple accounts with staggered maturity dates, providing regular access to some funds while earning higher interest.
- Long-Term Financial Planning: Fixed rate accounts are ideal for planning long-term financial goals due to their predictable returns.
Risks and Considerations
- Liquidity Risk: The major risk is the lack of access to funds for the term of the account, which could be problematic in a cash flow emergency.
- Interest Rate Risk: If market rates rise significantly, you may be locked into a lower rate, missing out on potential higher earnings.
- Economic Changes: Economic downturns or changes in monetary policy can impact the overall attractiveness of fixed rate accounts.
Monitoring and Managing the Account
- Regular Reviews: Review the account’s performance and relevance to your business’s financial strategy regularly, especially nearing the end of the term.
- Planning for Maturity: Decide in advance what to do with the funds upon maturity – reinvest in another fixed term account, move to a different type of account, or use the funds for business purposes.
In Summary
Fixed rate business savings accounts in the UK offer a dependable and straightforward way for businesses to grow their surplus funds. They provide a shield against interest rate volatility, which is particularly valuable in uncertain economic times. However, the lack of liquidity and potential for sub-optimal returns in a rising rate environment are important considerations. By understanding these accounts’ features and using strategic approaches like laddering, businesses can effectively incorporate fixed rate savings into their broader financial strategy. As with any financial decision, careful analysis and a clear understanding of the business’s short-term and long-term financial needs are paramount. A well-chosen fixed rate business savings account can be a powerful tool in the arsenal of business financial management, contributing significantly to the overall financial health and growth of the business.