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Kristina Fox
Connor CampbellMany or all of the products and brands we review are from our partners who compensate us. This may influence which products we write about and the product we choose in our ‘promotion’. However it doesn’t influence our reviews. Our opinions are our own.
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.
Promotion
The Co-operative Bank Directplus Business Account
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Monthly Fee£7No monthly fee for 30 months if balance of £1,000+ is maintained. £7 thereafter.
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Card Purchase Fees35pFree for first 30 months then 35p thereafter if balance remains at £1,000+. 70p if balance falls below £1,000 at any time.
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Bank Transfer Fees35pFree for first 30 months then 35p thereafter if balance remains at £1,000+. 70p if balance falls below £1,000 at any time | CHAPS: £25 via phone / £15 via online banking
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OfferFree everyday business banking for first 30 months + free access to the Go Get Paid appFor new customers, if you maintain a credit balance of £1,000+ there is no monthly service charge for 30 months, and all automated debits including standing orders, Direct Debits, Faster Payments, debit card payments and writing up to 30 cheques per charging period are free. Charges apply for exceeding these monthly limits.
Learn more about how we bring you our review.
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
- Multiple accounts do not charge a monthly service fee for an introductory period.
- 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
- In most cases, The Co-operative Bank does not offer same day account set-up.
- The Co-op Bank does not offer 24/7 customer service.
- Accounts that never charge a monthly service fee are only available to Federation of Small Businesses (FSB) members and registered charities.
- 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 cCons 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 comes with free everyday banking for the first 30 months. After that, it costs £10 a month.
Free everyday banking includes no monthly account fee, 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 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 is designed for businesses with a high cash turnover. It costs £10 a month, and has lower fees for cash-related services compared to some other 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 for first 30 months, then £10 a month | £10 a month |
| Transaction fees | No (standing orders, Faster Payments, direct debits). Yes for other transactions | No, for everyday banking for first 30 months. Yes for other transactions | 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 13 days | On average 13 days | On average 13 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.
Introductory offers: Both the Business Directplus and Business Current accounts have no monthly fees for the first 30 months.
Account perks: With your Co-op business account you may be able to access legal and HR services through Assurant, merchant services with Fiserv, 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 FSB and Community Directplus accounts, which have very specific eligibility requirements, no Co-op business account is ‘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 13 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 mixed to very good.
It is important to note that the following reviews are from The Co-operative Bank customers overall, not just the bank’s business customers:
- App Store: 4.8 out of 5, based on over 27,800 reviews
- Google Play: 4.3 out of 5, based on over 20,000 reviews
- Trustpilot: 3.2 out of 5, based on over 4,000 reviews
This information is correct as of 17 May 2023.
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
Review methodology
At NerdWallet Ltd UK we base our reviews on the results of surveys we conduct to understand what key product features are important to those who use them, and align them to the product we review.
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 it is likely there are others available that we have not reviewed. The review is our opinion, but it does not constitute advice, recommendation or suitability of your financial circumstances.
You can view our review methodology here.
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