What is a business savings account? How it differs from a current account
By SendPay Business · · 2 min read
A business savings account is a separate account where a company or sole trader keeps money it doesn't need day to day, usually earning interest. The business current account is still where payments come in and bills go out.
The main types
- Easy access: move money in and out when you like, usually at a lower rate.
- Notice: give a set warning, such as 35 or 95 days, before taking money out.
- Fixed term: lock money away for a set period, such as a year, at a fixed rate.
How interest is shown
Savings rates are usually quoted as AER, the annual equivalent rate, which shows what you'd earn over a year once any compounding is counted. It lets you compare accounts that pay interest monthly with ones that pay yearly.
Protection
Money in a savings account at a UK bank or building society is usually covered by the Financial Services Compensation Scheme, up to its limit per person per firm. Check with the provider, as e-money accounts are protected differently, by safeguarding rather than the FSCS.
Where SendPay fits
SendPay platforms give your customers GBP, EUR and USD accounts with transfers, cards, payment links and invoicing, under your own brand and powered by licensed partners.
Build it
Create your own financial platform.
Pick a template, name it, brand it, preview every page before you pay. Your brand, your users, your fees.
Build my platform →Questions people ask
How much should I save each month?
Work out the monthly amount to reach a goal by a set date.
Savings goal calculator →What is a business bank account?
The account a business uses day to day.
What is a business bank account? →What is a central bank base rate?
The rate that steers savings and loan rates.
What is the base rate? →Read next
This guide is general information, not legal or financial advice. SendPay Business is a technology company, not a bank, and does not take deposits; regulated services on the platforms are provided by licensed partners. PayPal, Patreon and Substack are named as reference points only and are not affiliated with SendPay Business.