Apply for business deposits

How do I open a corporate deposit in the UK?

Opening a corporate deposit account in the UK is a relatively straightforward process, but it requires careful preparation. A corporate deposit account allows businesses to earn interest on their surplus funds, similar to a savings account for individuals.

First, decide how you intend to use the corporate deposit account. Whether it's for holding surplus cash, earning interest, or managing short-term liquidity.

Choose between a fixed-term deposit (with higher interest rates for a fixed period) or a notice account (with more flexibility in accessing funds).

Compare offerings from different banks and financial institutions. Consider factors like interest rates, deposit terms, access to funds, fees, and customer service. Check the interest rates offered for different deposit amounts and terms.

Most banks will require the following documents:

Proof of Business Identity:
Certificate of incorporation or registration.
Memorandum and Articles of Association.
Business plan or strategy document (if required).

Proof of Business Address:
Utility bills, bank statements, or official letters addressed to the business.
Directors’ and Beneficial Owners’ Information:
Identification documents (e.g., passport, driving license) for all directors and beneficial owners.
Proof of address for directors and beneficial owners.

Financial Statements:
Recent financial statements, including balance sheets and profit & loss statements.

Banking History:
Bank statements from existing accounts (typically for the last 6-12 months).

Reach out to banks or financial institutions that offer corporate deposit accounts to discuss your needs and their offerings.

Account Types:

Fixed-Term Deposit: Offers a fixed interest rate for a specific period, typically offering higher returns for longer terms.
Notice Deposit Account: Allows withdrawals after a notice period (e.g., 30, 60, or 90 days), with slightly lower interest rates but more flexibility.
Instant Access Deposit: Provides instant access to funds with lower interest rates.

Visit the bank’s branch to complete the application process with the help of a relationship manager or business banker. Some banks may offer an online application process, where you can submit your documents and fill out forms digitally. In some cases, you may start the application process over the phone, with follow-up steps conducted online or in-person.

Review the terms and conditions of the account, including interest rates, withdrawal restrictions, and any fees. Sign the account agreement, either electronically or in person, depending on the bank’s procedures.

Once your application is approved and the initial deposit is made, the bank will provide confirmation of the account opening. Set up online banking for easy management of your corporate deposit account, allowing you to monitor balances, transactions, and interest accrual.

Keep track of interest payments and ensure that the account is meeting your financial goals. If you have a fixed-term deposit, plan ahead for the maturity date, deciding whether to reinvest, withdraw, or roll over the deposit.

Maintain communication with your bank’s relationship manager to discuss any changes in your business needs or market conditions.