Do I need a business savings account?
21 November 2019
What is a business savings account?
A business savings account offers interest on savings for business owners who are looking for somewhere to store their surplus cash.
What are the benefits of having a business savings account?
One of the main benefits from having a business savings account is the fact that you can earn interest on your money.
Another benefit is that you can save any surplus money you may have in the business and put towards a project for the future.
As anyone who has owned their own business at one time or another may have experienced challenges which have meant spending more money than planned. A business savings account also enables you to build a cushion to deal with any unexpected costs that may occur in the future.
What business savings accounts does The Co-operative Bank offer?
Business Notice Account - 95 Day Notice
Our 95 Day Notice Account is a business savings account that gives you a higher interest rate however, 95 days' notice must be given before taking any money out of the account.
This doesn’t mean that you aren’t able to withdraw money in an emergency. You can access your money immediately, although if you do this, you may have an interest charge for taking money out without giving 95 days’ notice.
To move money out of this account, this has to be done via telephone banking. Although, you can still view and move money into the account by using online banking.
Instant Access Business Savings Account
Our instant access account allows you to access your funds whenever you want, without any penalties. This means that you have full control of your account online and over the phone.
Both of our business savings accounts are suitable for any type of organisation, whether that be as a sole trader or limited company, or a charity.
Are business savings protected by the FSCS?
Are business savings protected by the Financial Services Compensation Scheme (FSCS), whether you’re an individual or a company. A deposit is money in accounts like current and savings accounts, including cash ISAs. If your bank, building society or credit union fails, you may be able to get compensation through FSCS.
For more information we have put together a helpful guide that explains further about what is covered by the FSCS.
Your eligible deposits with The Co-operative Bank plc are protected up to a total of £85,000 by the Financial Services Compensation Scheme, the UK's deposit guarantee scheme. This limit is applied to the total of any deposits you have with the following: The Co-operative Bank, Britannia and smile. Any total deposits you hold above the limit between these brands are unlikely to be covered. For more information visit the FSCS website.
What do I need to open a business savings account?
In order to open a savings account with us you must be an existing business banking current account customer and meet the following criteria:
- Hold a Co-operative Bank Business Current Account.
- 18 years old or over.
- Had no County Court Judgements (CCJs) in the last 6 years.
- Not have been declared bankrupt or entered into an IVA in the last 6 years.
- Not missed any payments on personal credit obligations in the last 6 months.
- Have a business address in the UK.
- Reside in the UK.
If you have a limited company you may be subject to further checks and additional documents may be needed.
How we can help you
When opening any Business Savings Account with us, you must ensure that you have read our business account terms and conditions, and important documents stated on our website. We also recommend you save copies of all these documents for your future reference.
Our Business Savings Accounts are only available to existing members who hold a Business Current Account with us.
If you want to know more information about Business Banking and the products and services we offer please visit our dedicated web page here.