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Read our review of Lloyds Bank business accounts, including pros, cons and key features.
Lloyds Bank is a UK bank with a high street presence across England and Wales. It currently offers business bank accounts for businesses with a turnover of less than £25 million, as well as community bank accounts for schools and non-profit organisations.
The business account offers no maintenance fee for 12 months, after which point it is charged at £8.50 a month. Lloyds Bank business accounts also carry a range of transaction fees.
Lloyds Bank Small Businesses and Start-ups Account
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Monthly FeeFree for 12 monthsNo monthly fee for first 12 months, then £8.50 thereafter
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UK Card Purchase FeesFree
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UK Bank Transfer Fees100 electronic payments out free per month100 electronic payments out free per month, 20p thereafter
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Offer12 months’ free day-to-day business banking for new business start ups and switchersFree day-to-day Business Banking includes electronic payments, cheques, cash, deposits and withdrawals. You must operate your account in credit or within agreed limits. All lending is subject to status. Security may be required
- To qualify for this account you need to be a sole trader, partner or company director and be aged 18 or over
- You must have a turnover of less than £25m
- Must not already have a Lloyds Bank business account for this business
Learn more about how we bring you our review.
Key features
- FSCS ProtectionEligible deposits up to £85,000 are protected by the Financial Services Compensation Scheme (FSCS).
- 24/7 customer serviceCustomers can get help around the clock via Lloyds Bank’s 24/7 X account (formerly Twitter) for customer support.
- Multiple access pointsYou can access your Lloyds Bank business account online, via the app, over the phone and at a branch.
- Credit facilitiesLloyds Bank offers a range of credit facilities for businesses including credit cards, overdrafts and loans.
Lloyds business account pros & cons
Pros
- You can access the account online, via the mobile app, over the phone and at a branch.
- Eligible deposits of up to £85,000 are protected by the Financial Services Compensation Scheme (FSCS).
- You can deposit both cash and cheques at a branch or Post Office, and deposit cheques via the mobile app.
- Lloyds Bank has branches in England and Wales for face-to-face support.
- The business account has no maintenance fee for 12 months.
- You can contact Lloyds Bank 24/7 for customer support via its app.
Cons
- The business account is only free of a monthly fee for an introductory 12-month period.
- There are no Lloyds Bank branches in Scotland or 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.
Lloyds Bank business account full review
Lloyds Bank is a UK banking provider that has been around for over 250 years. It serves both personal and business customers face to face at its branches across England and Wales, as well as digitally and over the phone.
There are Lloyds Bank business accounts designed for businesses and accounts for communities, such as schools or non-profit organisations.
Business account
Lloyds Bank’s business account is for customers with an annual turnover of under £25 million.
With the 12-month introductory offer, there is no monthly fee. Once the free period is over, the account is subject to an £8.50 monthly maintenance fee. Electronic payments in are free and 100 outbound electronic payments per month are free before a 20p charge per transaction.
Additionally, cash or cheque payments into or out of the account carry fees. Sending or receiving international payments and unauthorised overdrafts will be subject to fees from the start.
Community account
The community account, or Treasurer’s account, from Lloyds Bank offers options for schools, credit unions and treasurers of non-profits.
Each offers free day-to-day banking and no monthly fee for eligible applicants. However, charges may be applied for certain transactions, such as CHAPS and international payments.
Across all the business and community accounts, customers can access Lloyds Bank’s accounting software for free. The software includes features for predicting cash flow, submitting digital VAT returns and tracking sales.
Lloyds Bank business account features: at a glance
| Monthly fee | £8.50 (after introductory fee-free period, if applicable) |
| Transaction fees | Yes |
| Account management | Online Via mobile app Over the phone At a branch |
| FSCS protection | Yes |
| Set-up time | 7 days on average |
| Cash deposits | Yes |
| Cheque deposits | Yes |
| Access to other banking services | Yes |
| International payments | Yes |
| Customer service | 24/7 support via the app Phone support: 0345 072 5555, Monday to Friday, 7am to 8pm, Saturday, 9am to 2pm |
| Multiple user access | Yes (up to three users) |
| Create and send invoices | Yes, via Business Finance Assistant (free for Lloyds Bank business account holders) |
| Integration with accounting software tools | Yes |
Where Lloyds Bank business account stands out
FSCS protection
Eligible deposits up to £85,000 are protected by the Financial Services Compensation Scheme (FSCS). If you are a sole trader, the £85,000 limit includes any personal account you may hold with Lloyds Bank or Scottish Widows Bank, which shares a banking licence with Lloyds Bank.
24/7 customer support
Customers can access support 24/7 via Lloyds Bank’s mobile banking app.
Access to credit facilities
Lloyds Bank offers a range of credit facilities, including overdrafts, credit cards and business loans.
Multiple access points
You can manage your account via the mobile app, online, over the phone or at a branch.
Community accounts
Not only does Lloyds Bank offer accounts for start ups and small and large businesses, but it also offers community accounts for schools, credit unions and non-profit organisations.
Where Lloyds Bank business account falls short
Limited access in Scotland and Northern Ireland
Lloyds Bank only has branches in England and Wales, limiting access and face-to-face services to those in other areas of the UK.
Monthly fees
The business account is only free for 12 months before an £8.50 monthly fee is applied.
Lloyds Bank business account customer reviews
Lloyds Bank has a ‘bad’ Trustpilot rating of 1.7 out of 5 based on over 4,400 reviews. However, it’s important to note that these reviews relate to the whole of Lloyds’ offering, not just its business bank account.
The Lloyds Bank business banking app has a rating of:
- 4.1 out of 5, based on over 3,100 reviews on the app store
- 3.9 out of 5, based on over 6,300 reviews on Google Play
This information is correct as of 28 March 2024.
Lloyds Bank business account eligibility
According to the eligibility criteria for a Lloyds Bank business account, you must:
- be at least 18 years old
- be a sole trader, partner in a business partnership or director of a limited company
- have an annual turnover under £25 million
- not already have a Lloyds Bank business account
How to apply for a Lloyds Bank business account
To open a Lloyds business account, you’ll need to follow these steps:
- Apply online (if you have an annual turnover of under £3 million) or at a branch or over the phone if your turnover is higher.
- If your predicted turnover is set to exceed £3 million, you’ll need to speak to one of Lloyds Bank’s advisers).
- Provide proof of your identity and address.
- Wait to hear if your application has been successful – it takes on average three days to open an account.
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.
