More insights for businesses

There are many financial obstacles faced by businesses today. Whether it’s securing a high enough cash reserve to see you through hard periods, or putting money aside to reinvest at a later date, it’s important to make your money work harder for you in a safe place.

The best way of ensuring this money is available is to save it up. If you’re simply unaware of the options that are out there, read on as we spill the beans on everything business savings.


What is a business savings account?

Just like a regular personal savings account, business savings accounts are a type of bank account.

Business savings accounts work in much the same way as traditional accounts. Any money deposited in them can benefit from interest paid from the bank into the account on either an annual or monthly basis.


Can a business have a savings account?

Yes. Businesses are eligible for savings accounts.

For example, if you are a business owner, you can move money between your business and personal accounts as both will be in your name (provided that the money originates from a current account). However, if you are a limited company, you have a legal requirement to keep your business and personal finances separate.

Businesses are able to open separate savings accounts to deposit money when it’s not needed. In there, the money can accrue interest to keep it working for you even while it’s not in use.

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What types of business savings accounts are there?


Fixed rate business savings accounts

There are two main types of business savings accounts. The first is a fixed rate account.

Many people choose to open a Fixed Rate business savings account as it provides a sense of peace of mind. Locking in a rate that you’re happy with is great for knowing exactly how much interest you can earn, which in turn helps with financial planning and forecasts.

This type of account is suitable to you if you want a guaranteed rate of interest, have a lump sum deposit that you want to add to later, and won’t need to make a withdrawal during the term.

Compared to the other type of business savings account, the interest rates on a fixed term tend to be more competitive over longer periods.


Easy access business savings account

The second type of business savings is an Easy Access account. This is similar to a Fixed Rate account, with a few distinct differences. The main being that you’ll still get great interest rates, but you’ll also have total flexibility to withdraw your money or add to your savings whenever you want.

With an Easy Access account, the interest rate is variable and your lender will notify you if and when the rate changes.

This type of account is suitable to you if you are unsure about locking your money away. It says it all in the name. Access to your funds is easy with this kind of account and, if you change your mind, you can close it at any time without notice or penalties. If your company’s cashflow is seasonal or unpredictable, then easy access may be best.


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Are business bank accounts free?

Some lenders will attach fees to their savings accounts. However, at Aldermore, our Fixed Rate and Easy Access savings accounts have no fees or charges.


Are business bank accounts protected?

At Aldermore, your money is protected up to £85,000 by the Financial Services Compensation Scheme (FSCS) and the UK’s deposit guarantee scheme.

We’ll do everything we can to keep you safe. We’ll always confirm your identity, only return funds to a nominated UK account, and we’ll never write to you or call you asking for your password.

We’ve also partnered with Take Five to ensure every Aldermore account holder has access to straightforward and impartial fraud advice.

Are business savings accounts taxed?

Tax requirements depend on your business type and the interest you earn. Typically, any interest earned on business savings is paid gross. You’ll be responsible for declarations on your annual tax return.


Why you shouldn’t use personal savings in business

If we think of businesses as separate entities, it’s easier to see why they too should have their own accounts, rather than relying on a personal savings account for an individual.

Business and tax issues

Using a personal savings account for business can make it challenging to sort through personal and business expenses. This difficulty can sometimes lead to incorrect financial statements and reporting, resulting in issues with tax.


Liability protection

Keeping business and personal savings separate is key when dealing with limited liability in the event of corporate debt. Using personal savings as a business account could expose such savings to business liabilities, negating any limited liability from the individual holding them.



Granting access to accountants for personal savings is quite unorthodox. Personal savings accounts are structured on the basis that only one individual will have direct access at any one time, whereas business savings can be setup to allow access from shareholders, and accountants. Whether it’s completing one-time verification codes or simply granting access in general, business accounts are typically better when dealing with multiple people at once.



One major benefit of having a business savings account versus a personal one revolves around financial clarity when it comes to budgeting. Having your own money mixed in with your business savings can make it difficult to track. So, having two accounts, one for your business, and one for every day saving, makes this much clearer.


Explore more about business savings with Aldermore

For businesses of all sizes, it’s important to have a strong grasp on your financial position. With Aldermore, we’ll help you do exactly that thanks to our insights section on our blog. You can also take a look at our Easy Access Business Savings Account and our Fixed Rate Account to see which could be most suitable for you.


Aldermore business savings accounts