Four Reasons To Keep Your Business Savings With a Building Society

Want your business savings to do more? Find out why building societies can offer better value, community impact, and financial security.

By Nathan Wade

If you’re the person in charge of managing business finances, there’s a good chance you’ve explored the idea of business savings accounts. You might even already have one.

If so, great – ringfencing surplus cash isn’t just about earning interest. Keeping savings separate from day-to-day working capital makes budgeting clearer and strengthens cash flow forecasting. It can also help build financial resilience.

Something many companies don’t consider, though, is that a business savings account doesn’t have to sit with the same bank you use for your current account.

Many businesses default to the bank with which they already hold an account, simply because it’s convenient and the paperwork feels familiar. And when you’ve got an overstretched calendar and a growing inbox, that’s understandable.

Taking the time to shop around can be worth it, though. And that includes looking beyond the major high street banks and considering what building societies can offer.

Building Societies are structured differently, and as a result, they operate and often behave differently too. This may make them a better fit for some companies.

A stronger alignment with your ESG goals

For many businesses, there’s a growing emphasis on sustainability and corporate responsibility. But this isn’t just about going paperless or upping your recycling game. Who you partner or associate with is also important, and this includes which bank or building society your money sits with.

A building society is owned by its members, not external shareholders. That alone changes the dynamic. With no dividends to pay, there is no need to divert a portion of profits to external investors, so surplus can be reinvested in the future of the building society and also used in more local, community-orientated ways.

Here’s an idea of the kind of things this may include:

Investment in local conservation projects
Partnerships with grassroots youth schemes or local charities
Funding community assets, facilities, or grants

When you place savings with a building society, you’re not just earning interest; you’re often helping to fuel reinvestment back into real places and real people in your local area. Some of these people will be your employees, too. Therefore, you’re also doing right by your staff and the communities they live in.

In turn, this can be very attractive to your own prospective customers, some of whom notice these details and choose to buy from companies that mirror their own values.

Better in-person support

Online transactions are fast, efficient and perfectly suitable for 90% of routine tasks. But sometimes you just need an actual conversation. Maybe you want some support from a real person, or you might just prefer physically depositing and withdrawing cash.

It’s been well-documented that bank branches have been declining for a number of years and the pandemic only accelerated this. According to consumer watchdog Which? 6,522 bank branches have closed since January 2015. This works out at around 53 per week!

Meanwhile, building societies have bucked the trend, continuing to maintain a physical high street presence. According to the Building Societies Association, their share of UK branches has risen from 14% in 2012 to 35% in 2025.

Building societies embrace digital innovation, but they haven’t abandoned face-to-face customer service. For some businesses, that blend is invaluable.

You can have a voice

Member-owned means member-influenced.

When you choose a building society, you’re not just another customer on a database; you become a member. That means that personal account holders often get to vote on key decisions that shape the future of the society.

Some building societies also allow business customers to nominate a representative to vote too.

Most building societies invite members to:

Attend Annual General Meetings
Vote on directors
Approve accounts
Influence key decisions and future strategy

Even major structural decisions, like mergers, typically require member approval. Having this level of influence with a big high street bank is less likely. So, if having your say is important to you, consider looking towards a building society instead.

Diversifying risk

Businesses often diversify suppliers or revenue streams, yet sometimes forget they can diversify where their money lives.

Having a separate savings provider adds a layer of resilience to your business. From 1st December 2025, the Financial Services Compensation Scheme (FSCS) protects deposits up to £120,000 per institution, for both individuals and businesses. So, if your company has more than this, you’ll need to open a banking or savings account with another provider to ensure you’re covered.

This also helps to protect you from things like account freezes or system glitches. If one provider experiences an outage, but your savings are with someone else, at least your entire business isn’t frozen until the problem is resolved.

Practical elements aside, having more than one provider allows your company to take advantage of different perks and interest rates.

Weighing up your decision

The right home for your business savings will depend on several factors, such as:

The institution’s financial stability and reputation – don’t forget to check reviews and ratings
The interest rates and flexibility of the products it provides – remember to check any restrictions around deposits and withdrawals, for example
Customer service and accessibility – consider the speed and quality of support, ease of managing accounts, and proximity to a branch
Local and social impact – does the bank or building society demonstrate responsible ESG decisions that sit well with your values?
Alignment with your business needs – be confident that they understand the requirements of your type of business

A bank might still be the right home for some, but for others – particularly those who value a more personal service – a building society deserves serious consideration.

If you believe that your money should do more than earn interest and like the idea of it supporting local prosperity, a building society may be an ideal match for your financial strategy and your values.

About the author

Nathan Wade is Head of Membership at Suffolk Building Society, with responsibility for maintaining a first-rate customer service for personal and business savings accounts. Having been with the Society for almost 15 years, Nathan is passionate about both financial services and improving customer experience for its members.