Making the Most of Your Bank and Savings Accounts

When it comes to managing money whether personally or in your business, the way you use your bank and savings accounts can make a big difference.

This isn’t exciting or sexy but but setting things up properly can seriously help your cash flow, make your life easier at tax time, and even earn you a bit of extra interest along the way.

So here are a few simple, practical tips I share with clients to help them get the most out of their accounts and keep more money working for them.

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Give Every Account a Purpose

Every account you have should have a reason for existing. For example, in your business, it helps to have:

• A main business current account – for day-to-day income and expenses.
• A separate tax account – where you move a percentage of income aside for VAT, Corporation Tax, or personal tax. I really like this approach and do this myself – IT’S FINE IF YOU CAN’T AT THE START, just build up over time.
• A savings or reserve account – your emergency fund or “rainy day” pot.

And the same logic applies to your personal money too. Having a separate account for bills, another for spending, and one for savings makes it so much easier to see what’s what.

I can’t tell you how many times I’ve seen this simple setup transform how people manage their money, for some of my clients any remaining money at the year end post Corporation tax is paid is a bonus to them, which feels amazing.

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Separate Your Tax and Growth Money

If you do one thing after reading this, this is the one for me.

Every time you get paid, move a portion (say 20–25%) into a separate account just for tax.

It sounds boring, but it stops that sinking feeling when your tax bill lands. The money’s already there waiting for HMRC, and you can carry on running your business without panic.

You can also use this trick for growth funds — maybe saving towards a new laptop, marketing push, or team hire. It’s the same idea, but with a more positive goal.

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Keep an Eye on Interest Rates

Interest rates have jumped up and down recently, so don’t assume your savings are in the best place.

Take 10 minutes every few months to check what’s available — sites like MoneySavingExpert or MoneySuperMarket do a great job listing the top rates for both business and personal accounts.

A small bump in rate can add up over time, especially if you’re holding larger balances.

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Make Sure Your Money’s Protected

This one’s simple but important check that your bank is covered by the Financial Services Compensation Scheme (FSCS). It protects up to £85,000 per person, per bank.

If you hold more than that in cash, think about spreading it across multiple institutions to stay fully covered.

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Review Things Every So Often

Life and business move quickly, and your setup should evolve too.

Every six months or so, take a look at your accounts and ask:

• Are they still serving their purpose?
• Are you getting a fair rate?
• Do you still know where all your money’s going?

It’s amazing how quickly things drift if you don’t check in now and again.

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Final Thoughts

Making the most of your bank and savings accounts isn’t about chasing every penny, it’s about being intentional with your money.

You can get bank accounts with no fees, and there are good interest rates out there. Picture you burns the annual interest you have missed out on each year!