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All you need to know about business savings accounts

Business savings accounts have a different interest set-up than your average savings account. They allow you to earn interest on regular payments paid in or a lump sum each month. They do usually have a notice period on them though. This means before you can make a withdrawal, you will need to provide written notice of your intention to do so to the bank. This is something you should find out before opening a business account, as penalties may be in place for withdrawals without notice.

The length of notice you have to provide to withdraw from business savings accounts will vary, both between financial institutions and accounts. The period can be anything from 7-days right up to 90-days. Banks who offer high interest rates on business savings accounts are likely to have the longer withdrawal notices. Penalties range from early-access fees to losing any excess interest your account has earned or even both. However, although easy access accounts are available for businesses, the fact that the notice accounts have the higher account is often the attraction.

Secure Trust Bank offer one of the best notice business savings accounts, however, the high interest rate they offer is given on the understanding you must provide 120-days notice if you wish to withdraw. There are penalty charges in place on their accounts that require early withdrawals, although they do take in to account personal circumstances. Minimum deposits are £1,000.

Santander has the Business Reward Saver for businesses and it has proven to be one of the most popular accounts for new and small businesses. While their 2.00% APR rate is not as good as Secure Trust, they have no notice period on this account and you can withdraw as much as you like whenever you want too. Minimum deposits are also £1,000.

 

 

 

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