If you’re planning for a business expansion in the future, then business savings accounts are an effective way to prepare your business for growth. It allows you to have extra income, separate to personal savings, by earning interest on your savings. Business savings accounts typically offer higher interest rates than current accounts, allowing your savings to grow over time, providing a safe space and protecting them from potential losses from other investments.

A separate business savings account for tax bills helps keeps your finances in line by separating them from your day to day operating funds, making it easier to track and manage. By regularly separating a portion of your businesses income ensures you have the necessary funds when tax payments are due, preventing cash flow issues, and helps avoid overdue payments by having funds readily available.

When running a business, there will be expenses that are expected and unexpected. Having a business savings account is an effective way to save for these expenses as it provides a clearer picture of your finances, helping you reduce the likeliness of overspending.  It can also help as a safety net to cover emergency expenses without impacting your business operations.

A business savings account allows you to earn interest on cash that’s not being spent, increasing your overall business funds. The interest earned can be reinvested or used to grow the business. 

A business savings account is specifically designed for businesses to earn interest on their savings and save money long term, even as an emergency fund. Having a separate business savings account to your personal savings, makes finances easier as it acts as a safety net for your business, so you don’t use your day-to day transaction funds. Whether it is a sudden repair, a stock shortage, or another unforeseen expense, having an emergency fund set aside, can make all the difference. A business savings account is a great place to build that safety net.

If your business experiences seasonal highs and lows, it is particularly helpful to have a business savings account set up to have money set aside for these changes.

At the Tipton, we offer a range of business savings accounts to help you grow your business savings, including notice and limited access accounts. As a local building society, we are proud to be empowering local businesses reach their savings goals, with our range of accounts available to sole traders, partnerships (unincorporated entities), limited companies, and limited liability partnerships.

If you are looking to open a business savings account with us, please read our helpful step-by-step guide on opening a business savings account with the Tipton. You can view our range of business savings accounts here.