Joel Kempson
Kristina FoxMany 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.
TSB business account: at a glance
TSB is a UK bank with more than five million customers. It offers business banking to sole traders, partners and company directors with businesses registered in the UK.
The bank offers one account for new business customers: its Business Plus account, which offers one tariff after an introductory 30-month, fee-free period. This can be used for everyday business banking.
Find out more about TSB business accounts, including the benefits and features that might suit you and your business.
Promotion
TSB Business Plus Account
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Monthly Fee£5Free for 30 months, £5 monthly thereafter | Waived if account balance kept above £10,000
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Card Purchase FeesFrom freeUK card purchases: free | Non-UK card purchases: 2.75%
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Bank Transfer FeesFrom freeUK Sterling Direct Debits, standing orders & faster payments: free | CHAPS: £30 | International transfers carry additional charges
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OfferFREE for first 30 months£5 monthly fee thereafter. Waived if account balance kept above £10,000.
Learn more about how we bring you our review.
TSB business account pros & cons
Pros
- 30 months’ free day-to-day banking for new customers opening a Business Plus account.
- The account can be managed online, via a mobile app and over the phone.
- Deposits up to £85,000 may be protected by the Financial Services Compensation Scheme (FSCS).
- There are branches in England, Wales and Scotland for in-branch support.
Cons
- There are no TSB branches in Northern Ireland (though you can open an account here).
These pros and cons are based on a survey of UK business owners on what they found important when selecting a range of business products, conducted by NerdWallet in December 2022.
TSB business account key features
- TSB is a UK-authorised bank regulated by the Financial Conduct Authority (FCA)
- It provides business bank accounts, so deposits up to £85,000 may be protected by the Financial Services Compensation Scheme (FSCS)
- New customers may be eligible for 30 months’ free day-to-day banking, after which a monthly fee and transaction fees may apply
- Other banking products and services, such as business loans and overdrafts, are available from this provider, subject to eligibility and terms and conditions
TSB business account full review
TSB is a UK bank offering banking services to both personal and business customers in the UK. It currently has over five million customers. It was founded over two hundred years ago, but it has been in its present form since 2013. TSB is a former member of Lloyds Banking Group and is now part of the Spanish banking group Sabadell.
Its Business Plus account offers banking to both start ups and established businesses through a range of channels, including its website, app and over the phone.
Find out more about TSB’s business account offering in the table below, where we’ve gathered everything you might want to know.
| Monthly fee | £5 (waived if average monthly account balance is £10,000 or more) Free for 30 months for new customers |
| Transaction fees | Yes (for certain transactions) Free banking for 30 months for new customers (some exclusions apply) |
| Account management | Online Via mobile app At a branch Over the phone |
| FSCS protection | Yes |
| Potential for same day set up | Yes |
| Cash deposits | Yes (at a branch or the Post Office) |
| Cheque deposits | Yes (at a branch or the Post Office) |
| Access to other banking services | Yes |
| Integration with accounting software and tools | Yes |
| International payments | Yes |
| Customer service | Automated chat bot Web chat with advisors Over the phone At a branch |
| Multiple user access | Yes |
| Trustpilot rating | 3.9 out of 5 (as of 22 February 2023) |
TSB business account features
The following sections provide some important information about the key features of TSB business accounts.
Business account fees
Business owners feel that the most important criteria for a business account is its monthly cost, according to NerdWallet’s survey.
- New TSB customers can open a Business Plus account for free for 30 months (after which it is £5/month, with some exceptions), which has one tariff with a set monthly fee and charges for certain transactions.
If you are an existing TSB business account holder, you may have an older account that is no longer available for new customers to open or existing customers to switch to. These accounts have different pricing structures:
- Fixed Fee account: This type of account offers a range of service plans, labelled from A-E, for a fixed fee of from £5 a month for the former up to £40 a month for the latter. Customers with this account can choose to downgrade or upgrade their tariff between tiers.
- Business Extra Tariff: This tariff is aimed at businesses relying on large cash transactions and offers free cash withdrawals for a £5 a month fee.
- Electronic Business Tariff: This plan offers free BACS transfers and free direct debits for a monthly fee of £5.
Monthly fee
TSB currently offers only one business banking product to new customers, TSB Business Plus. This account has a monthly fee of £5 at the end of the introductory fee-free period. This monthly fee is waived if you maintain an average monthly balance of over £10,000.
Transaction fees
With a TSB business account, most of the transactions you make during your initial 30-month period will be free. This includes taking out cash, issuing or depositing cheques, and all standing orders and direct debits. However, you must keep to the agreed limits of your account and not use an overdraft without TSB’s agreement.
Some actions on your account may incur a fee in the introductory period, such as international payments. You can look at TSB’s website for more details.
After the introductory period, everyday transaction fees are as follows:
| Electronic payments (in or out) | Free |
| UK direct debits and standing orders (in or out) | Free |
| Faster Payments (in or out) | Free |
| Payments made online, via the app or over the phone | Free |
| Purchases in the UK | Free |
| ATM cash withdrawals | Free |
| Cheques (each, paid in or out) | 70p |
| Cash (per £100, paid in or out, or exchanged) | 70p |
| Transfers between TSB accounts in your name | Free |
Other fees
There are additional fees that you may need to consider, depending on how you use the account.
TSB charges for unarranged overdrafts. It also charges £10 per day for an unarranged overdraft between £50 and £200, and £20 per day over £200. However, you will not be charged a daily fee for more than 10 days in a single billing period. This means that in a given month, you could be charged a maximum of £200 in fees for going into an unarranged overdraft, in addition to the interest charged on this unarranged borrowing.
Arranged overdrafts may be available depending on certain lending criteria, but you will be charged interest and an arrangement fee.
If your business trades internationally, it’s worth knowing about international transaction fees. These are chargeable even during the 30 months’ fee-free banking.
Transactions and cash withdrawals taking place in euros in a European Economic Area (EEA) country will incur a 2.75% fee. In any other territory or currency, foreign transactions will also be charged an extra 1.5% non-sterling cash transaction fee (minimum £1.50).
Easy account access
Second highest on the list of business account criteria for the business owners we surveyed is easy account access.
You can access a TSB business account at a TSB branch, over the phone, via internet banking or via the mobile business banking app. It’s also possible to deposit cash and cheques at the Post Office.
Internet and mobile banking are accessible 24 hours a day, seven days a week. Telephone banking is available weekdays, 7am-8pm and on Saturdays, 9am-2pm. An automated service operates outside these times. Branch opening times may vary; you can find out more on the TSB website.
It’s worth noting that there are no TSB branches in Northern Ireland. However, businesses registered in Northern Ireland can still open an account with TSB.
Certain actions, such as paying in a cheque, must be done at a branch or the Post Office. Additionally, some transactions (such as setting up new standing orders) are only possible online or during telephone opening hours, not via the mobile app.
Account set-up
According to our NerdWallet survey, a quarter of the business owners we asked felt that quick account setup was important when looking for a business account.
According to TSB, around a third of business accounts are opened on the same day as application, once all required documents have been received. On average, it takes two days for business customers to open an account.
FSCS protection
The third most important criteria for business owners when comparing business accounts, according to our NerdWallet survey, is that deposits are protected by the Financial Services Compensation Scheme (FSCS).
As TSB is a UK-authorised bank, its business accounts are covered by the FSCS. Your deposits are protected up to £85,000, so if TSB were to fail, you would be automatically compensated for the value of your deposits with the bank up to that limit.
It’s worth noting that the limit applies across all the accounts you hold with a bank. If you are a sole trader with both a personal and a business account with TSB, your deposits would be protected up to £85,000 total across the two accounts.
However, if you run a limited company with its own business account, this is separate to your personal account as the limited company is its own legal entity. So the £85,000 limit would apply separately to your personal account and to your business account with the same bank.
Mobile phone app
A mobile app is the fourth most important feature for a business account, according to NerdWallet’s survey of business owners.
TSB has a business banking mobile app which is available on Apple and Android devices. You can use the app to make payments to existing payees, as well as check your balance and transactions.
Customer service
You can contact TSB’s customer support team in the following ways:
- By telephone on 0345 835 3858 from 8am-6pm, Monday to Friday (excluding bank holidays) and from 9am-2pm, Saturdays
- By live chat, with advisors online between 9am-4:30pm on weekdays (excluding bank holidays) and with an automated chat bot 24/7
- In a branch at over 250 locations across Great Britain – check the TSB website for opening times.
If you want to speak to someone, either over the phone, face to face or via live chat, support times are generally limited to working days and hours. However, this may not be an issue for business customers. 24/7 customer service was not majorly important for business owners when looking for a business account according to our survey, ranking joint ninth with international banking facilities.
Customer reviews
TSB has been reviewed on a number of sites. Reviews on Trustpilot may include its personal banking services as well as its business accounts, while reviews from both the Apple App Store and Google Play are for the TSB business mobile app.
- Trustpilot: 3.9 out of 5, based on over 17,700 reviews.
- Apple App Store: 4.7 out of 5, based on over 16,400 reviews.
- Google Play: 3.1 out of 5, based on over 6,190 reviews.
This information is correct as of 22 February 2023.
TSB business account eligibility
To open a business bank account with TSB, you will need:
- to be over 18
- to be a sole trader, partner in a general partnership or limited liability partnership, or director of a limited company
- your business to be registered in the UK
- proof of a UK business address
- to need the account solely for business use
At least one partner (for a partnership) or director (for a limited company) must live in the UK. Additionally, you need to be willing to undergo a credit check as part of your application.
How to choose a TSB business account
There are a number of questions that you may want to ask yourself when deciding whether to open a TSB business account or when looking at other providers:
- Do you want to pay a monthly fee or pay per transaction?
- How would you like to manage your account (i.e. online, via an app, in branch)?
- Do you prefer to bank digitally or would you like the option of face-to-face banking in a branch?
- Are you willing for you and your business to undergo a credit check as part of your business banking application?
- Do you want your deposits to be protected by the Financial Services Compensation Scheme (FSCS)?
How to apply for a TSB business account
To open a TSB business account, you can apply for a new account or switch your existing account from your current bank. Switching to TSB is backed by the Current Account Switch Service guarantee, so it should be a quick and simple process that should be completed within seven working days.
To make an application to open a TSB business account, you’ll need to follow these steps:
- Apply online.
- Submit proof of ID and address.
- Wait for approval.
Apply online
You can apply for a TSB business account on the bank’s website. You will have to choose your business type (sole trader, limited company, partnership or limited liability partnership) and provide information about your business. If you’re switching from another bank, you can tell TSB you want to switch accounts during the application process.
Details you may need to give as part of your application include:
- your business address (if this is not your home address)
- details of other people involved in the business
- your partnership agreement (if applicable)
- details of your tax residency outside the UK (if applicable)
Additionally, TSB are among a group of UK business account providers that have agreed to a basic template of information required to open an account.
Examples of what you will need to provide include:
- business name
- start date
- expected turnover
- certificate of incorporation (for limited companies) or partnership agreement (for partnerships)
Submit proof of your identity and address
You’ll need to submit proof of ID as part of your application. This could be your passport or UK driving licence.
TSB may also need proof of your home address (and your business address, if it’s different). You can use documents such as your driving licence (if not used as proof of ID) or a letter from HMRC (from the last 12 months) to prove your home address. Utility bills (dated within the last six months) or tenancy agreements are examples of documents that may be used as proof of business address.
Wait for approval
After you have submitted your application, TSB will review it and let you know if any further information or other documents are required. TSB aims to process applications straight away and will contact you within five working days if additional documentation is needed.
On average, TSB opens business accounts in two days for new customers once all necessary documents have been received, and no additional information is required.
If your application is approved and your account is opened, you will get internet banking access straight away so you can begin accessing and managing your account. Your debit card will follow up to a week later.
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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