How a business savings account could benefit your small business
30 April 2019
When you start a small business, your focus is on the here and now of ensuring that you make enough to keep the business afloat. But when your business starts making a profit, you can start planning for the future.
If you plan on growing your business, or just want to make the most of your excess funds, you should consider opening a business savings account.
What is a business savings account?
A business savings account is designed for businesses to save money, and to earn interest on those savings. Savings accounts are perfect for businesses that are accruing more profits than their outgoings. Rather than those excess funds sitting dormant in a business current account, a business savings account makes your money work harder for you.
Business savings accounts usually come in the form of instant access accounts and notice accounts. Instant access savings accounts are great if you need regular access to your savings as they allow you to withdraw funds from your account anytime without restrictions. Notice accounts generally require you to provide notice before withdrawing funds. Without providing prior notice, you may incur a penalty such as a loss of interest.
What are the benefits of having a business savings account?
Earn interest on your savings
Business savings accounts enable you to earn interest on your savings, compared to current accounts that pay little to no interest. If you’re a small business that’s starting to generate a regular profit, you can make that profit work harder for you by saving it in a business savings account.
Plan for growth
One of the barriers many small businesses face when it comes to growth is a lack of funding. If you’re looking to grow your small business, you’ll know that every penny counts. Business savings accounts provide you with a structured savings option, enabling you to grow interest on the funds you deposit.
Protect your savings
As a small business, 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 Co-operative Bank, Britannia and smile. Any total deposits you hold above the limit between these brands are unlikely to be covered. For further information, visit www.fscs.org.uk
Our business savings account
At the Co-operative Bank, our Business Select Instant Access Savings Account can be opened with as little as £1. This account enables you to start earning interest on your surplus funds to save for tomorrow or fund future growth.
In order to open a business savings account with us, you’ll need to have an existing Business Current Account with us. After you move funds into your account, interest is calculated daily and is paid to your account twice a year, in April and October.
Our Business Select Instant Access Savings Account is easy to manage. You can view your account at any time using Online Banking and you can make transfers using either Online Banking or Telephone Banking.
What makes saving with The Co-operative Bank different?
If you choose to save your money in our business savings account, you will be reassured in the knowledge that your money will not be used in a way that conflicts with our customers' values and ethics.
Business Savings with a difference
It’s customers like you that help make a real difference to the lives of people in our local communities. We’re still the only UK high street bank with a customer-led Ethical Policy, so you know that you’re saving with a bank that shares its customers’ values.
If you’re interested in opening a business savings account with us, take a look at our Business Select Instant Access Savings Account and Business Current Account pages. Applications are subject to status and T&Cs apply.