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Duncan Ferris
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Allica Bank’s business current account – its Business Rewards Account –is a UK current account designed for established small and medium-sized enterprises (SMEs) with no monthly fees and free bank payments. This account could be of particular interest to those looking to earn interest on savings and cashback on purchases, thanks to its dedicated rewards features.
The Business Rewards Account offers 4.33% AER on its instant access savings pot, as well as up to 1.5% cashback on eligible purchases.
As a licensed bank, all of Allica Bank’s savings accounts, including its current account, offer Financial Services Compensation Scheme (FSCS) coverage on eligible deposits up to £85,000.
Allica Bank Business Rewards Account
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Monthly FeeFree
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UK Card Purchase FeesFree
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UK Bank Transfer FeesFrom freeDirect Debits – Free | BACS – Free | Faster Payments – Free | CHAPS – £20 per transaction (outgoing)
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OfferUp to 1.5% cashbackEarn 1% cashback on your card spend and unlock 1.5% cashback on additional monthly card spend after you spend £10k in a month.
- For UK-based businesses only
- Must have been trading for at least 12 months
- Must have a minimum estimated annual turnover of £500k or at least 5 employees to open a Business Rewards Account
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Key features
- No monthly feeThere is no charge for opening and maintaining Allica Bank’s Business Rewards Account.
- Instant access savings potEarn 4.33% AER on your savings in the savings pot and deposit or withdraw at any time.
- FSCS protectionEligible deposits up to £85,000 are protected by the Financial Services Compensation Scheme (FSCS).
- Cashback on eligible purchasesEarn 1% cashback on eligible monthly debit card aggregate purchases up to £10,000, and 1.5% on monthly aggregate purchases above £10,000. Aggregate purchases are when all the smaller sums you’ve spent are added together.
Allica Bank business account pros & cons
Pros
- The Business Rewards Account is free to open, and there is no monthly fee for keeping it.
- There are no transaction fees for incoming or outgoing bank payments or card payments, and no outgoing fees for direct debits.
- Allica Bank’s business banking customers in England, Scotland and Wales have access to local relationship managers who can provide tailored expertise.
- Allica Bank offers asset finance of between £25,000 and £1 million.
- Each Business Rewards Account provides an instant access savings pot with 4.33% AER.
- Cashback of up to 1.5% is offered on eligible purchases using the Business Rewards Account debit card.
Cons
- It isn’t possible to deposit cash, cheques or banker’s drafts into the Business Rewards Account.
- While Allica Bank’s customer service team is based in the UK, it doesn’t offer 24/7 customer support.
- It’s only possible to manage your account online or via the app, not over the phone.
The pros and cons featured here are chosen by us based on a combination of our expert, research-based opinions and an exclusive survey of UK business owners and decision makers. The survey was conducted on behalf of NerdWallet UK in December 2022 to identify the business bank account features that people feel are most important. They are unlikely to be the only product features and restrictions that you should consider. Pros and cons are subjective and you should align them to your own personal and business circumstances. Information was correct at the time of publication but may have changed since.
Allica Bank business account full review
Having gained its banking licence in 2019, Allica Bank is one of the newer or ‘challenger’ banks competing against larger, traditional banks. Based in England, it aims to serve the needs of established SMEs across the UK.
According to Allica Bank, its Business Rewards Account, which it launched in 2022, makes it the “UK’s only full-service bank dedicated to serving established SMEs”, which it defines as businesses with 10 to 250 employees.
While Allica Bank doesn’t have any branches, it does have offices in Milton Keynes, London and Manchester and relationship managers out on the road across England, Scotland and Wales. It also has a UK-based customer service team.
The Business Rewards Account is Allica’s proprietary business current account. There are no monthly fees and no transaction fees on bank payments, direct debits or purchases. It offers a range of features, including specific rewards for both spending and saving.
The account provides an instant access savings pot that offers a 4.33% AER, allowing customers to earn money on their savings, while the cashback feature allows them to earn on their spending, too.
Customers can get up to 1.5% cashback on eligible purchases: 1% on purchases up to a monthly aggregate value of £10,000 and 1.5% on purchases thereafter.
Eligible deposits of up to £85,000 will be protected by the FSCS. Unless your business is a limited company or a limited liability partnership, it’s worth noting that this £85,000 protection is the total across all accounts you hold with Allica Bank.
Allica Bank business account features: at a glance
| Monthly fee | No |
| Transaction fees | No |
| Account management | Online, via app |
| FSCS protection | Yes |
| Set-up time | Three to five days |
| Cash deposits | No |
| Cheque deposits | No |
| Access to other banking services | Yes, asset finance |
| International payments | Yes |
| Customer service | 0330 094 333 (Monday to Friday, 9am to 5pm) |
| Multiple user access | Yes (directors only) |
| Create and send invoices | No |
| Integration with accounting software tools | Yes |
Where Allica Bank business account stands out
No monthly fees: The Allica Bank Business Rewards Account is free to open and maintain.
No fees for everyday banking: There are no transaction fees for incoming or outgoing bank payments, direct debits or card payments. You’ll only pay fees for outgoing CHAPS payments and outgoing bulk payments when you make multiple payments in one go.
Dedicated relationship manager: All new Allica Bank customers have access to a relationship manager who can offer tailored support.
Instant access savings pot: A key feature of the Business Rewards Account, the savings pot offers a competitive 4.33% AER and 24/7 access for deposits and withdrawals.
Cashback: As a reward for making purchases with the Business Rewards Account debit card, you can get up to 1.5% cashback on eligible purchases.
UK-based customer service team: Allica Bank’s support team is based in the UK and operates during normal working hours.
Where Allica Bank business account falls short
Limited customer support: Allica Bank’s customer support phone lines are only open from 9am to 5pm on Mondays to Fridays. The bank does not offer 24/7 digital support.
Doesn’t accept cash or cheques: Allica Bank is unable to accept deposits by cash, cheque or banker’s draft.
Allica Bank business account customer reviews
Allica Bank has a small number of reviews, but this could be because it launched in 2020 and its Business Rewards Account has only been available in the past year. On Trustpilot, it scored 4.4 out of 5, based on over 800 reviews, which may include reviews for its personal savings accounts.
Allica Bank’s mobile app, which is specifically for its business account, had the following ratings:
- App Store: 4.8 out of 5, based on over 400 reviews
- Google Play: 4.6 out of 5, based on over 100 reviews
This information is correct as of 7 March 2024.
Allica Bank business account eligibility
To be eligible for the Allica business bank account, you must:
- be over 18 years old
- be based in the UK
- have your business registered with Companies House
- have been registered for at least 1 year
- have a minimum of 5 employees OR achieve annual turnover greater than £500,000
How to apply for a Allica Bank business account
To apply for Allica’s business current account, you’ll need to fill out the online form with the following information:
- legal name
- company name
- business email
- phone number
- confirmation your business has been trading for over a year
- whether your estimated turnover is greater than £500,000
You can also fill in your expected initial deposit amount, though this is optional.
The bank says that one of its representatives will aim to phone you within one working day to confirm that the information submitted in the form is correct and to fill in any additional information it may require. The bank will run some security and ID checks when you apply, but this won’t affect your credit score. If there are no issues with your application, your account could be open within three to five working days.
Review methodology
At NerdWallet UK, we base our reviews and our ‘Best’ pages on the results of surveys we undertook about what was important to people who use these products. This allows us to look at products impartially of any commercial arrangements we have and fairly rate the products on the same set of criteria.
Best means our ‘Best’ and is based only on what products we have aligned to our surveys, which form the basis of our reviews and ratings. This means that there will be other products on the market that we have not included in our ‘Best’ pages. Best does not mean it’s best for you, nor does it mean the ‘cheapest’.
Our reviews may display lenders’ rates. This additional information has not been included in our evaluations but is still very important when choosing a product. Rates offered can depend on circumstances, amount and term. Always check details before proceeding with any financial product.
Product details reflect the information that was available at that time but may have changed since. We strive to give you a review on as many products as possible, but there will be products not included on the market. The review is our opinion, but it does not constitute advice, recommendation or suitability for your financial circumstances.
You can view our full review methodology here.