Business savings accounts

If your business is a limited company, you cannot use a personal savings account, as the business is a separate legal entity. However, if you're a sole trader, you can use a personal savings account for your business, as your business and personal finances are considered one and the same.

The minimum balance to open a business savings account will vary depending on the type of account you wish to open. For example, an instant access could be opened with as little as £1 but a fixed-term account might need a minimum deposit of £1,000. It’s always important to check the terms and conditions for each provider.

Yes, some business savings accounts are only available to certain types of business. For example, one type of account may only be eligible to a limited company or a sole trader, but not for a charity.

Yes, you can open more than one business savings account. Just bear in mind that the more accounts you have, the more admin there might be in terms of opening and maintaining them. And depending on the amount of spare money you have, you might not make the most amount in interest if you split your funds between several accounts.

Many business savings accounts do have withdrawal restrictions. For instance, fixed-term savings accounts typically don't allow withdrawals before the end of the term without incurring a penalty. Instant or easy access accounts tend to offer more flexibility, though you may still have to wait a few days for the money to be transferred.

Opening a business savings account typically doesn’t take long, as long as you have all the required information ready. The process varies by provider, with some being faster than others. However, you can generally expect your account to be set up within a week or less.

The exact requirements vary between providers, but in general, you’ll need to prove your business is legitimate and supply identification for both yourself and the business.

Here’s what you’ll typically need to provide when opening a business savings account in the UK:

For all businesses:

• Proof of ID and address for all named individuals on the account (e.g. passport, driving licence, utility bill)

• Proof of business address

• Business bank account details (some providers only accept applications from existing business current account holders)

• Details about the nature of your business and its activity

For sole traders and freelancers:

• Proof of trading status (e.g. HMRC registration or UTR (Unique Taxpayer Reference))

• Business name (if trading under a different name)

• Estimated annual turnover (some accounts have a minimum or maximum turnover requirement)

For limited companies and partnerships:

• Certificate of incorporation (Ltd companies only)

• Companies House registration number

• Details of all directors, partners, or shareholders

• Partnership agreement (if applicable)

Other potential requirements:

• A minimum deposit. Some providers require an initial deposit of £1,000 or more

• Your expected annual turnover

• Tax residency status for all named individuals (for regulatory checks)

Before you apply, it’s worth checking the provider’s eligibility criteria carefully to make sure your business qualifies.

Yes, sole traders can open a business savings account. Many providers offer accounts specifically designed for sole traders, allowing you to separate your personal and business finances while earning interest on your savings.

To open an account, you’ll typically need to provide proof of your identity, address, and evidence of your trading activity, such as a tax return or proof of income.

A business savings account can help sole traders manage their finances more effectively, build a safety net for unexpected expenses, and save for future business investments.

Yes, you can typically link a business savings account to your business current account. Doing this will allow you to transfer funds easily between the two accounts, improving cash flow management and simplifying savings alongside daily business operations. It is worth checking with your provider for specific linking options and terms to ensure a smooth connection.

Most UK business savings accounts have a maximum deposit limit, but this amount will vary by provider. Some accounts allow large deposits, while others cap the balance eligible for interest. Check your account’s terms before depositing large sums to ensure your funds are fully covered and earning interest.

Most business savings accounts can be managed online or through a mobile app. This allows you to check balances, make transfers, and monitor interest earned from your computer or smartphone. Features may vary by provider, however, so it’s worth checking what digital tools are included before opening an account.