As an established bank, TSB not only provides access to your business bank account through your smartphone and desktop computer, but also through local branches, unlike many challenger competitors. Alongside a free banking period, TSB is a great option for start up business owners and those looking to switch their business account.
TSB have been through many different guises over the years, but have been actively providing consumer and business credit products since 1985. In that time, they were taken over by Lloyds Bank and have subsequently separated, but still continue to provide business banking options for those looking to grow their small business into a larger enterprise.
TSB offers an attractive business bank account that is perfect for brand new businesses who would benefit from 25 months of no fees, or existing business owners looking to cut costs by switching.
Money Guru Rating: 4.8/5
- Pros and cons
- Eligibility criteria
- App features
- Spending abroad
- Fees and charges
Pros and Cons
Offers free business banking for 25 months
Local branches available
Access through Mobile app or Internet Banking
Deposit cash in-branch or through Post Offices
Free replacement cards
Free cash and cheque deposits
Accounting software integration
Free Square reader
Credit cards and Loans also available
£5 monthly fee after free banking period finishes
Cheques cost 70p per transaction after free banking
Cash deposits cost 70p after free banking
The free business banking period of 25 months ensures that new customers to TSB will have time to get used to the account without having to pay additional fees. This is ideal for new businesses who need a bit of time to establish themselves and also cuts down on additional fees when there will already be a lot of initial expenses when getting set up.
- Business Plus Account – pick up 25 months’ worth of free business banking as standard with the TSB Business Plus account. Deposit cash and cheques for free and make as many transfers as you require. Also comes with a free Square card reader. Ideal for switchers and start ups
- You are aged 18 or over
- You are a sole trader, partner or director of a company
- Your business is registered in the UK
- You have proof of your business address
The TSB Business Banking app is a great way to check your balance on the go and setup transfers, along with authenticating transactions and monitoring expenses that leave your account. The app is through existing banking details or you can use built-in features of your mobile device such as Touch ID or Face ID instead.
View balances and transactions while on the go, without having to login online or visit your local branch. This allows you to keep on top of payments leaving your account and monitor your cashflow month-on-month
Make transfers and setup standing orders as standard, meaning you can pay suppliers and setup repeat orders for stock you may require. Adjust the frequency and keep control of your finances.
Setup new recipients by confirming them through the app, without having to provide any further information. This means you can quickly make payments if you’re ordering supplies as a one-off or need to make a quick transfer while out and about.
Authenticate transactions means you can monitor your transaction history and also authenticate transactions that are being made through internet banking, making it quick and easy for you to make payments without any delays.
Once you have setup your account through the TSB Business Banking app, you should be able to enter your username and password to login, though for future logins you only need 3 characters from your memorable information.
Alternatively, you can use built-in security features such as Touch ID or Face ID to secure your account and login whenever you need to.
While card payments and cash withdrawals are completely free in the UK, abroad they will always incur a charge. For cash withdrawals and card payments you will usually have to pay 2.75% charge when you’re outside of the UK. However, for making international transfers, you can use TSB’s Online International Payments Service which will speed up the process and allow you to pay in over 20 currencies in the EEA and beyond.
Fees and charges
Conveniently, most actions you make whilst in your 25-month introductory period are completely free, including making local transfers, withdrawing cash in the UK, setting up direct debits and standing orders and depositing cash and cheques. After this period you will have to pay a £5 monthly fee and cash and cheque deposits will cost 70p.
As mentioned, transactions outside of the UK such as cash withdrawals and card payments will incur a 2.75% fee on top of the original transaction.
There is plenty of support to be found online for TSB, alongside speaking to a representative on the phone, or visiting your local branch to get further questions answered. This is useful for those who prefer to speak to someone in person, and is preferable to other challenger banks who don’t have any branches at all.
Summary - 4.8/5
TSB offers an attractive business bank account that is perfect for brand new businesses who would benefit from 25 months of no fees, or existing business owners looking to cut costs by switching. This offer far outweighs many introductory offers from other banks, with the added bonus that you may already bank with TSB or have a local branch close to your place of business.
If you need a safe pair of hands with plenty of support, you will find TSB to be a user-friendly banking establishment, allowing new businesses a bit of breathing room while they focus on other setup costs. You can also take advantage of the Business Banking Switch Scheme if you’re an exiting customer of RBS or NatWest, meaning you can get a further incentive when you move.
Would you like to open a new TSB business bank account? Check out our business banking tables using the button below.