TSB Business Banking Review

TSB is a UK bank with over 300 branches and more than five million customers. TSB offers business banking to sole traders, partners and company directors with businesses registered in the UK.

TSB Business Plus accounts can be managed in its branches, online and via its app. Account holders are also able to speak to a business adviser over the phone and manage certain account features through text alerts.

TSB is a former member of Lloyds Banking Group and now part of the Spanish banking group Sabadell.

TSB is regulated by the Financial Conduct Authority (FCA). What’s more, your funds up to £85,000 will be protected by the Financial Services Compensation Scheme (FSCS) if the bank fails. It’s worth noting that FSCS protection applies to all UK authorised banks, building societies and credit unions.

Find out more about TSB business banking, including the benefits and features that might suit you and your business.

Pros and cons of TSB Business Banking

There are a number of pros and cons to consider for TSB business banking.

Pros of the TSB Business Account

• You can deposit cash and cheques at TSB branches in England, Wales and Scotland or at Post Offices.
• Businesses can have free business banking for the first 25 months.
• You can cash and cheque deposits (free for the first 25 months).
• There is integration with accounting software.

Cons of the TSB Business Account

• There is no free account reporting or invoicing tools after three months
• There are no branches in Northern Ireland.
• £5 monthly fee if your average monthly balance is under £10,000 (after free banking period ends).
• The account has a £5 monthly fee if your average monthly balance is under £10,000.
• Cheque deposits cost 70p after the free period ends.
• Cash deposits cost 70p per £100 after the free period ends.
• Foreign transaction charges start from 2.75%.
• Only one TSB plan is available to new customers, so it is a one-size-fits-all account.

What business bank accounts does TSB offer?

TSB currently offers one business banking product to new customers, TSB Business Plus. This account has a fixed monthly fee at the end of a 25-month, fee-free period. This monthly fee is waived if you maintain an average monthly balance of over £10,000.

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 are:

• Fixed Fee account: This type of account offers a range of service plans from A-E for a fixed fee of from £5 to £40 a month. Customers with this account can still choose to downgrade or upgrade their tariff.

• Business Extra Tariff: This tariff is aimed at businesses relying on large cash transactions and offers free 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.

What are the TSB Business Account charges?

The only business account tariff currently available from TSB for new customers is the Business Plus account, which comes with an initial free day-to-day banking period of 25 months.

Most of the transactions you make during your initial 25-month period will be free. This includes paying for 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.

At the end of the 25-month period, you will be charged a £5 monthly fee unless your average balance is over £10,000, in which case the fee is waived. You will also be charged for depositing or issuing a cheque (70p) or paying cash in or out (70p per £100).

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.

Arranged overdrafts may be available depending on certain lending criteria, but you will be charged interest and an arrangement fee.

Transactions and cash withdrawals taking place in euros in an 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).

How to open a TSB Business Bank Account

You can open a TSB business account in a branch or online. TSB aims to process applications straight away and will contact you within five working days if additional documentation is required.

You will need:

• to be over 18
• to be a sole trader, partner or director of a company
• your business to be registered in the UK
• proof of a UK business address

You may find that the quickest way to open your account is by applying online, though if you are unable to upload certain documents you may need to visit a local branch.

You can use banking trade body UK Finance’s free business current account checklist to make sure you have all the relevant documentation to apply for a business current account.

» MORE: Opening a business bank account online

What features does the TSB Business Account offer customers?

The TSB business account offers customers a range of features and services that can help businesses in their daily operations.

• Extensive branch network across England, Scotland and Wales where you can speak to staff and complete transactions. You can also use Post Offices to complete some transactions.
• Cash and cheque deposits are free in the first 25 months, then available for a fee.
• 24/7 online and mobile banking through internet banking or the TSB business banking mobile app.
• Business debit card to make free ATM withdrawals and payments.
• Ability to integrate with accounting software from Sage, Xero and QuickBooks.
• A TSB savings account is also available

What do other TSB business banking reviews say?

While TSB’s ratings on Trustpilot were middling to poor, this included its personal banking services as well as its business accounts. However, the TSB Business Mobile app fares much better with reviewers in the Apple Store and on Google Play.

Trustpilot: 3.7 out of 5, based on over 16,200 reviews with 48% rating it as ‘5-star’ and 32% as ‘1-star’.

Apple Store: 4.7 out of 5, based on over 14,000 reviews.

Google Play: 2.6 out of 5, based on over 5,000 reviews.

This information is correct as of 10 October 2022.

Conclusion

A TSB Business Plus account will likely cover the needs of many UK businesses.

The basics of online banking, as well as branch services and cash and cheque deposits are all covered. If you rely on regularly making deposits to a local branch, you will likely benefit significantly from the TSB branch network, as well as being able to use services at Post Offices. Businesses in Northern Ireland will not have the benefit of local branches, however.

For many looking to switch banks, 25 months of fee-free banking will also be a tempting bonus.

If your business deals with a lot of foreign transactions, or you do not need to make regular deposits in person, you may find that there are better deals available with a challenger bank.

TSB Business Current Account FAQ