Ethical and sustainable practices are central to The Co-operative Bank, which gets involved in a variety of social and economic campaigns. So if these issues are important to your business, you may want to consider one of its accounts.
And with several types of accounts to choose from, The Co-operative Bank could be an option for many different types of businesses, allowing you to pick the account that best suits your needs.
The Co-operative Bank Business Current Account
Free
Free
Free
Free everyday digital business banking + access to selected Clover payment terminals for £1 a month*
- Must be aged 18 or over
- Must be a UK resident with a business address in the UK
- Must be sole trader or Limited company that is owned or controlled by one person
NerdWallet's Review Summary
There is a lot to like from The Co-Operative Bank for start ups. The bank offers start-up guidance and other support tools, plus deals on insurance, HR tools and more. The bank also places ethics at the forefront of its mission, so it may appeal strongly to socially conscious new business owners.
The Co-operative Bank key features:
- Account options: Business owners can choose from six different current account options.
- FSCS protection: Your eligible deposits, up to £85,000 across all of your accounts, are protected by the Financial Services Compensation Scheme (FSCS).
- Borrowing: Account holders can access borrowing through an overdraft, a charge card for expenses, a credit card, or a variable rate business loan.
- Account management: Manage your money online, over the phone, via the app or in a branch
NerdWallet's Pros & Cons
Pros:
- Some of the bank’s accounts do not charge a monthly fee or digital transaction fees.
- Customers can manage their accounts online, over the phone, via the mobile app and in a branch.
- Customers can access a business overdraft, credit card, charge card and loan.
Cons:
- It takes an average of 13 days to open an account with The Co-Operative Bank. This is significantly slower than most of the competition.
- Customers do not have access to round-the-clock customer support.
- There are no branches in Northern Ireland.
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Key features
- Range of accountsThere are six different Co-op business accounts on offer, for a variety of business sizes and needs.
- FSCS protectionEligible deposits, of up to £85,000 across all accounts, are protected by the Financial Services Compensation Scheme (FSCS).
- Sole traders, limited companies, LLPs and charitiesThe Co-op offers accounts to most business types, including sole traders, limited companies, limited liability partnerships, charities, credit unions and co-operatives.
- Overdraft and credit facilitiesWith your Co-operative Bank business account, you may be able to access overdraft, credit card and business loan facilities.
The Co-operative Bank business account pros & cons
Pros
- The Co-operative Bank offers some accounts with no monthly fees.
- Eligible deposits of up to £85,000 are protected by the Financial Services Compensation Scheme (FSCS).
- You can manage your Co-op account online, over the phone, via the mobile app and in a -branch.
- You can apply for a business overdraft, credit card, charge card and loan.
Cons
- It can take, on average, 12 days to set up an account.
- The Co-op Bank does not offer 24/7 customer service.
- There are no branches in Northern Ireland.
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.
The Co-operative Bank business account full review
Founded in 1872, The Co-operative Bank aims to be sustainable and promote ethical values. The bank incorporates the principles of Environmental, Social and Governance (ESG) in its business and launched an Ethical Policy in 1992.
The Co-operative Bank has a range of business accounts available that cater for different kinds of businesses.
All accounts come with free accounting software integration, free invoicing app Go Get Paid, and a choice of how you bank, whether that’s online, in a branch, over the phone or via the mobile app.
Business Directplus account
Available to businesses of all sizes, the Business Directplus account does not charge a monthly account fee for the first 30 months it is open, as long as your balance stays above £1,000. After 30 months have elapsed, or when your balance dips below £1,000, the account costs £7 a month.
You can deposit £1,000 in cash and 25 cheques a month for free, but charges apply after you have used that allowance. And if eligible, you can also gain the support of a dedicated relationship manager.
Business Current account
Only available to sole traders and limited companies owned or controlled by one person, the Co-op Business Current account has no monthly charge.
It also includes unlimited Faster Payments, debit card purchases, and ATM cash withdrawals (though some ATMs may charge their own fees), among other services.
FSB business banking account
Co-op’s FSB business banking account (which is only available to Federation of Small Businesses members) does not charge a monthly service fee and comes with free everyday banking (with cash limits). However, you must be a member of the FSB to be eligible for this account.
Cash Tariff account
The Cash Tariff account offers lower cash depositing fees than other Co-operative accounts and is available to any type of business. It costs £10 a month, and has lower fees for cash-related services compared to some Co-op accounts.
Standard Tariff account
The Standard Tariff account costs £10 a month, and has a pricing structure that is not dependent on your account balance, unlike the Business Directplus account.
Community Directplus account
The Community Directplus account is for registered charities, co-operative or community benefit societies, credit unions and community interest companies.
There is no monthly service charge, and free everyday banking, including automated credit and debits, cash and cheque deposits, and cash withdrawals.
However, you cannot exceed the following annual account limits:
- credit turnover of more than £1 million
- deposit more than £100,000 in cash
- deposit more than 5,000 cheques
The Co-operative Bank business account features: at a glance
| Business Directplus Account | Business Current Account | Standard Tariff Account | |
| Monthly fee | Free for first 30 months (if balance remains above £1,000), then £7 a month | Free | £10 a month |
| Transaction fees | No (standing orders, Faster Payments, direct debits). Yes for other transactions | No | Yes |
| Account management | Online, over the phone, in a branch and via the mobile app | Online, over the phone, in a branch and via the mobile app | Online, over the phone, in a branch and via the mobile app |
| FSCS protection | Yes | Yes | Yes |
| Set-up time | On average 12 days | On average 12 days | On average 12 days |
| Cash deposits | Yes (£1,000 free a month, then 80p per £100) | Yes (£1.50 per £100) | Yes (80p per £100) |
| Cheque deposits | Yes (25 free a month, then 75p per cheque) | Yes (£1.50 per cheque) | Yes (75p per cheque) |
| Access to other banking services | Yes (overdraft, charge cards, credit cards, loans) | Yes (overdraft, charge cards, credit cards, loans) | Yes (overdraft, charge cards, credit cards, loans) |
| International payments | Yes | Yes | Yes |
| Customer service | 03457 213 213 (8am to 6pm Monday to Friday, 9am to 12pm Saturday) | 03457 213 213 (8am to 6pm Monday to Friday, 9am to 12pm Saturday) | 03457 213 213 (8am to 6pm Monday to Friday, 9am to 12pm Saturday) |
| Multiple user access | Yes | Yes | Yes |
| Create and send invoices | Yes (Go Get Paid app) | Yes (Go Get Paid app) | Yes (Go Get Paid app) |
| Integration with accounting software tools | Yes | Yes | Yes |
Where The Co-operative Bank business account stands out
Range of accounts: While not every account is accessible to every type of organisation, the Co-op Bank still offers six accounts with varying pricing structures designed to appeal to different business needs.
Free options: The Business Current, FSB and Community Directplus accounts all have no monthly fees.
Account perks: With your Co-op business account you may be able to access legal and HR services through Assurant, merchant services with Clover, sustainability measurement resources from Zellar, tailored business insurance from AXA, and invoicing services with the Go Get Paid app.
FSCS protection: Your eligible deposits, up to £85,000 across all of your accounts, are protected by the Financial Services Compensation Scheme (FSCS).
Access to overdraft and credit facilities: With a Co-op business account, you can apply for an arranged overdraft, a charge card for expenses, a credit card, and a variable rate business loan.
Sole traders, limited companies, LLPs and charities: Among the bank’s six business accounts, there is an option suitable for every business type, including charities.
Where The Co-operative Bank business account falls short
Monthly fees: Aside from the Business Current Account, FSB and Community Directplus accounts, the latter of which both have specific eligibility requirements, you’ll find that other Co-op business accounts are not ‘permanently’ free from monthly fees. At best, they have introductory free periods that will expire.
Customer support: The Co-op doesn’t offer 24/7 customer service, and has limited support options.
Slow set-up: According to the Co-op, on average it takes 12 days to set up a business account with the bank. Many banks offer same-day set-up.
» MORE: What is a same day business account?
The Co-operative Bank business account customer reviews
The Co-operative Bank business customers have left reviews on a number of different platforms. These reviews range from poor to positive.
On Trustpilot, Co-op has a ‘Great’ rating of 4.1 out of 5, based on over 10,600 reviews. It is important to note that these reviews are from The Co-operative Bank customers overall, not just the bank’s business customers.
For its dedicated business banking app, meanwhile, Co-op has received the following reviews:
- App Store: 1.4 out of 5, based on over 190 reviews
- Google Play: 1.4 out of 5, based on over 300 reviews
This information is correct as of 19 November 2024.
The Co-operative Bank business account eligibility
To get a business account from The Co-operative Bank, you will at minimum need to meet the following criteria:
- Be aged at least 18 years or over.
- Live in the UK and have a UK business address.
- You won’t have any County Court Judgments (CCJs) or Individual Voluntary Arrangements (IVAs) from the last six years.
- You won’t have missed any payments on your personal credit file over the last six months.
Which The Co-operative Bank business account you select will then have its own set of eligibility requirements:
- Business Directplus account: Your business must operate as a sole trader, partnership, limited liability partnership, or limited company.
- Business Current account: You must be a sole trader, or a limited company owned or controlled by one person.
- FSB business banking account: You need to be a member of the Federation of Small Businesses , and be structured as a sole trader, partnership, limited liability partnership or limited company.
- Cash Tariff account: You must be a sole trader, partnership, limited liability partnership or limited company.
- Standard Tariff account: You must be a sole trader, partnership, limited liability partnership or limited company.
- Community Directplus account: You must be a registered charity, co-operative or community benefit society, credit union or community interest company. You also cannot have an annual credit turnover greater than £1 million, deposit more than £100,000 in cash a year, or deposit more than 5,000 cheques a year.
How to apply for a The Co-operative Bank business account
To apply for a Co-op business account, you will need to take the following steps:
- Select the Co-op business account you wish to open.
- Prepare your information and documentation. This may include expected turnover, Companies House registration number, a form of identification, and your business’s tax details.
- Submit an online application form.
- Wait to hear back from The Co-operative Bank.
» MORE: How to open a business bank account in the UK
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