The best place to park surplus business cash depends on how quickly you might need it back. A call account gives you instant access at a lower interest rate; a notice deposit pays more if you can give 32 or 90 days' warning; a fixed deposit pays the most but locks the money for a set term. Most businesses use a call account as the default and move longer-dated cash into notice or fixed deposits.
This guide explains the non-transactional side of business banking — the accounts a business uses to hold money rather than move it — and how to match the account type to your cash-flow needs.
Why a separate account for business savings
Your operating account — a transmission or current account — is built to move money. It pays little or no interest, because the bank assumes the balance is always turning over. Any cash that sits there for weeks is earning nothing.
A dedicated savings or deposit account fixes that. You keep enough in the operating account to cover payroll, suppliers and debit orders, and sweep the surplus into an account that pays interest. The trade-off you are managing is access versus return: the more notice you can give the bank before withdrawing, the higher the rate it will pay.
The account types compared
| Account type | Access | Interest (relative) | Best for |
|---|---|---|---|
| Business call account | Instant, no notice | Lowest of the interest-bearing options | Everyday surplus, buffer cash, VAT and PAYE set-asides |
| Notice deposit (32 / 90 day) | After a notice period | Higher — rises with the notice period | Cash you can plan around a month or a quarter ahead |
| Fixed deposit | Locked until maturity (1–60 months) | Highest, fixed for the term | Reserves you are certain you will not need |
| Money market / investment account | Usually instant or short notice | Market-linked, variable | Larger balances where the rate tracks money-market yields |
Business call account
A call account is a savings account with no notice period — you can transfer money back to your operating account the same day. Interest is tiered: the rate steps up as the balance crosses thresholds, so a larger balance earns a higher rate on the whole amount or on the portion above each tier. Call accounts are the workhorse of business saving because they cost nothing to hold and impose no lock-up. Standard Bank's MarketLink is a well-known example of a call/savings account, and every major bank offers an equivalent.
Notice deposit account
A notice deposit pays a higher rate in exchange for a delay on withdrawals. When you want the money, you give notice — commonly 32 or 90 days — and the funds are released at the end of that period. Some banks let you withdraw immediately for a penalty. Notice accounts suit money you can see yourself needing on a rough timeline: a provisional tax payment, an equipment purchase next quarter, a seasonal stock build.
Fixed deposit
A fixed deposit locks a lump sum for a chosen term, from a month to several years, at a rate fixed on day one. You cannot add to it or draw from it before maturity without breaking the deposit (and forfeiting interest). It pays the most, and the fixed rate is useful when you expect rates to fall. Use it only for genuine reserves.
Money market and investment accounts
For larger balances, a money-market or corporate investment account pays a variable rate that tracks short-term money-market instruments. Access is usually same-day or short-notice. Minimum balances are higher than a call account, and the rate moves with the market rather than sitting in fixed tiers.
How interest tiers work
Interest-bearing business accounts almost always use tiered rates: the bank publishes a rate table by balance band, and higher balances earn a higher rate. Whether the higher rate applies to the whole balance or only to the portion inside each band varies by bank, so read the rate sheet. Two practical consequences:
- Splitting one balance across two banks can drop you into a lower tier at each and cost you interest. Consolidating into one account often earns more.
- Rates are quoted as nominal annual rates; the effective yield depends on how often interest is capitalised (monthly is common). Compare on the same basis.
Rates change with the repo rate and between banks, and the headline numbers on a marketing page are frequently the top-tier rate that only applies above a large balance. Always check the rate for your expected balance before moving money.
Choosing based on your cash flow
- Predictable, steady cash flow: a call account for the buffer, plus a 32-day notice account for the portion you rarely touch.
- Lumpy or seasonal cash flow: keep more in the call account for flexibility; use fixed deposits only for the clearly idle core.
- Large reserves you will not touch: ladder several fixed deposits with staggered maturities so some matures each quarter.
- Tax set-asides (VAT, PAYE, provisional tax): a call or 32-day notice account — you know roughly when you will need it, and the notice period is often shorter than the gap to the payment date.
Keeping savings and operating accounts in view
Once business cash is split across an operating account and one or more savings or deposit accounts — often at different banks chasing the best rate — the practical problem is visibility. Answering "how much do we actually have, and where?" means logging into each portal separately.
This is the same issue businesses hit when they run accounts at more than one bank. A scheduled feed of balances and transactions from every account into one place — a dashboard, your accounting system, or a webhook — turns "log into four banks" into one number. Where an account holder links their accounts through Banklink, each account's balance and transactions arrive on the schedule you set.