Wouldn’t it be great if you could earn interest on your business savings too? With a business savings bank account in the UK, this is now possible. Check out this post to know 5 things about this account.

A current bank account is a preferred choice among businesses in the UK as it facilitates larger commercial transactions more frequently compared to a savings account. However, like most types of business accounts, a current account does not generate interest. 

But what if, apart from the current account, you could have another bank account that allowed you to earn interest on business savings too? With a business savings bank account, this is now possible. Here are 5 things you should know about this account-

1. What is a Business Savings Account?

As the name suggests, a business savings account is a type of savings account designed for UK businesses. Like an individual savings account, businesses can deposit their savings in these accounts and earn interest depending on the deposited amount. 

The funds can be accessed online and offline as and when needed, making it an innovative way for business owners to generate additional income on their savings. 

2. What is the Interest Rate and Minimum Balance Requirements of a Business Savings Account?

While only a few banks in the UK offer such accounts, the terms and conditions can vary significantly. With a few banks, the AER (Annual Equivalent Rate) could be as high as 0.30% for up to £5 million deposits. The interest is accumulated daily to help you make the most of your savings. 

In most cases, these accounts do not have any minimum balance requirements. You can start with as little as £1. You can check the official website of your preferred bank or visit the nearest branch office to know more. 

3. Who is Eligible to Open a Business Savings Account in the UK?

If you already have a business current account in the same UK bank, then you’ll be eligible for the business savings account as well. The savings account will be linked to the current account for fund transfers.

However, if you don’t already have a current account, then you’ll have to submit identity and address proofs to complete the account opening process.

4. How to Apply for a Business Savings Account?

You can open a business savings account online or offline. Visit the official website of the bank to download the application form. After filling the form, you can submit it online, along with the additional proofs (if needed) to initiate the account opening process. 

For offline applications, you can visit the nearest branch office of the bank to fill and submit the account opening form. 

5. Who Should Consider a Business Savings Account?

Any business owner looking for a safe and secure way to park their business savings and generate interest can consider opening a business savings bank account. The account is highly flexible and useful with no minimum balance requirements and offers seamless online/offline accessibility. 

Even the application and account opening process is simple to ensure that maximum businesses can benefit from this account. 

Opening a Business Savings Account in the UK

Banks in the UK have introduced different types of business accounts to help commercial entities with their custom banking requirements. The business savings account is another addition to the extensive range of banking solutions to help businesses generate additional income on their savings.

If you already have a current account and looking for a safe place to deposit your business savings, then a business savings account is a smart solution.