The Business Banking ExpertUK business accounts, reviewed

Comparison

Best business savings accounts

A headline AER is not what you earn. A rate you can only reach by paying a subscription costs you the subscription, and money you cannot touch for 95 days is a different product entirely.

Our picks

Best net return
Al

Allica Bank

4.0 / 5

2.83% AER on a free account with instant access — around £833 a year on £25,000, the best net figure in our table. Established businesses only.

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Best on a free tier
Mo

Monzo Business

4.3 / 5

1.30% AER on free Lite and Pro, rising to 3.25% on Team at £25 a month. That upgrade only pays for itself above roughly £15,400 of balance.

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Best free-plan rate
T

Tide

3.8 / 5

2.00% AER on the free plan — and at £25,000 it beats every one of Tide’s own paid tiers once the plan fee is counted.

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Compared

Scores use our seven weighted criteria. Run your own figures on the true cost calculator.

AccountRate on free tierBest rateCost to reach itAccessScore
AlAllica Bank2.83%3.33% with boostsNoneInstant4.0
TTide2.00%3.25% on Max£839.88 for MaxInstant3.8
MMettle by NatWest1.46%1.46%NoneInstant3.9
MoMonzo Business1.30%3.25% on Team£300 for TeamInstant4.3
VVirgin Money3.50%SameNoneInstant4.1
RRevolut BusinessNone on Basic2.15% on Grow£240 extraInstant3.6
AANNA Money1.00%3.04% on Big BusinessPlan feeInstant3.4
CCo-operative Bank1.06%1.38% on PlusMonthly feeInstant3.3
HHSBC Business1.21%1.31% above £1mNoneInstant or 30 day3.7
HHSBC Business1.21%1.31% above £1mNoneInstant or 30 day3.7
BBarclays Business1.05%1.51% above £10mNoneInstant3.6
NNatWest Business0.85%2.50% on 95-day noticeNoneInstant or notice3.6
SaSantander Business0.80%3.25% fixed bond£10,000 minimumInstant or fixed3.3
LLloyds Business0.50%2.66% on notice£10,000 minimumInstant or notice3.5
SStarling BusinessNoneNone4.2

How we score interest

We calculate the net yield: interest on a representative £25,000 reserve, minus the extra annual cost of the plan needed to unlock that rate, adjusted for how quickly you can reach the money.

net = (rate × £25,000) − (extra annual plan cost) × access factor

Access factors: instant 1.00, notice 0.90, fixed term 0.82, non-deposit 0.70. A rate you cannot reach for 95 days is worth measurably less than one you can draw tomorrow.

Two providers that lose you money by upgrading

Tide. The free plan pays 2.00% and earns £500 on £25,000. Smart at £149.88 a year pays 2.50% and nets £475. Pro nets £420. Max, at £839.88 a year for 3.25%, nets minus £27. The highest advertised rate on Tide’s own chart is the worst outcome at this balance.

ANNA. Free Pay As You Go pays 1.00%. The Business plan pays 1.51%, which only beats free if the plan costs under about £10.60 a month. It does not.

Starling pays nothing at all Starling pays no interest on business balances. Its Easy Saver and Fixed Saver are personal products — each requires a Starling personal current account. On a £25,000 reserve that is £325 a year foregone against Monzo Lite, and £833 against Allica. Being free is not the same as being cheap.

The high street is where rates go to die

Every provider below is a licensed UK bank with identical FSCS protection. On a £25,000 instant access balance:

  • Virgin Money 3.50% — £875 a year
  • HSBC 1.21% — £302
  • Co-operative Bank 1.06% — £265
  • Barclays 1.05% — £262
  • NatWest 0.85% — £213
  • Santander 0.80% — £200
  • Lloyds 0.50% — £125

That is a sevenfold difference between two high-street banks for the same money, the same access and the same protection. Virgin is the outlier; the rest cluster around 1%.

Rates also move without announcement. HSBC cut its instant access tiers on 10 March 2026, taking the bottom band from 1.33% to 1.21% — visible only because HSBC publishes old and new rates side by side in its summary box. Most providers do not.

Two presentational habits make this harder to see than it should be. Tiered rates: NatWest advertises “0.85% to 1.46%” and Barclays “1.05% to 1.51%”, but those upper figures begin at £1m and £10m respectively. Almost every small business earns the bottom number. Conditional rates: Santander’s Business Reward Saver pays 1.00% only in months where you make no withdrawals — a savings rate contingent on not using the savings.

If you want more without leaving your bank, notice accounts pay considerably better: NatWest 2.50% at 95 days, Lloyds up to 2.66%, Santander 3.25% on a fixed bond. All require you to give up access, and most require a £10,000 minimum.

The protection question

Chasing rate into an unprotected product is a poor trade on a business reserve. Wise advertises the highest headline here at 3.50% on GBP — but it is not a deposit. The money is invested in a fund, Wise states plainly that capital is at risk, and there is no FSCS cover.

Remember too that FSCS protection is £120,000 per authorised firm, not per account. Mettle shares a limit with NatWest, RBS and Ulster Bank. If your reserve is larger, spread it across genuinely separate institutions.

You do not have to save where you bank

Virgin Money’s Business Access Savings Account can be opened without holding its current account — unusual, since almost every rival ties the rate to the current account or a paid plan. If your bank pays nothing, that is a route to a better rate without switching your day-to-day banking.

Run your own figure on the true cost calculator, which nets interest against fees across every account we track.

Common questions

What is the best business savings rate in the UK?

On net return after any plan cost, Allica at 2.83% AER on a free account with instant access produces the best figure we model — around £833 a year on £25,000. Virgin Money advertises 3.55% but we have not verified it against its own site.

Does Starling pay interest on business accounts?

No. Starling pays nothing on business balances. Its Easy Saver and Fixed Saver are personal products requiring a Starling personal current account.

Is it worth upgrading a plan to get a better savings rate?

Often not. Tide Max costs £839.88 a year for 3.25% and leaves you worse off than Tide’s free plan at £25,000. Monzo Team costs £300 for 3.25% and only pays for itself above roughly £15,400 of balance. Always net the plan cost off the interest.

Are business savings accounts FSCS protected?

Those with licensed banks are, up to £120,000 per eligible depositor per authorised firm. Products from e-money firms are not, and fund-based products like Wise Business Interest are investments where capital is at risk.

Can I open a business savings account without switching bank?

Yes in some cases. Virgin Money’s Business Access Savings Account does not require you to hold its business current account, which is unusual — most rivals tie the rate to the current account or a paid plan.