Glossary

Business savings account

By Fredrik Filipsson, cofounder of Business Bank Index
Reviewed by Morten Andersen
Definition

A business savings account is a deposit account that lets a business set aside surplus funds separately from its day to day account and earn interest on the balance.

Information as of 16 January 2026Last reviewed 16 January 2026

General information, not financial, legal, or tax advice. Verify current terms and eligibility with the provider before applying.

A business savings account is an account a company uses to hold money it does not need for daily spending. It keeps surplus cash separate from the main current or checking account and usually pays interest, while access may be instant or subject to notice depending on the product.

How a business savings account works

A business savings account holds funds that a company does not need for immediate operating expenses. It is separate from the business current or checking account used for daily transactions, and it usually pays interest on the balance. Money is typically moved between the savings account and the main account by transfer rather than by card or cheque, current as of 16 January 2026.

Types of business savings account

Providers offer several formats. An instant access or easy access account lets a business withdraw funds at any time, usually at a lower rate. A notice account requires a set number of days notice before a withdrawal, often in exchange for a higher rate. A fixed term deposit locks funds away for a set period at a fixed rate. The right format depends on how soon the business expects to need the cash.

Why it matters to a business

Holding surplus cash in a savings account can earn interest that an operating account may not pay, while keeping the money available for planned costs, tax bills, or a reserve. Rates, minimum balances, access terms, and whether deposits are covered by a deposit guarantee scheme change and vary by country and provider, so confirm current details with the provider.

Frequently asked questions

What is a business savings account?
A business savings account is a deposit account a company uses to hold surplus funds separately from its main account and earn interest. Access may be instant or subject to a notice period depending on the product.
How is a business savings account different from a business current account?
A current or checking account is used for day to day transactions such as payments and card spending. A savings account is used to hold surplus cash and earn interest, and it usually has fewer transaction features. Many businesses use both.
Do business savings accounts pay interest?
Most business savings accounts pay interest on the balance, though the rate varies by product and provider and can change over time. Notice and fixed term accounts often pay more than instant access accounts. Confirm the current rate with the provider.
Are business savings deposits protected?
Deposits may be covered by a deposit guarantee scheme up to a limit, depending on the country and the institution. Coverage and limits vary, so check whether a specific provider and account are covered before depositing.

Definitions, fees, features, and eligibility change and vary by region. This page was last reviewed on 16 January 2026. Confirm current terms with the provider before applying.

Related terms and guides