Bank of Scotland Business Banking

About Bank of Scotland

The Bank of Scotland were the first, and are the oldest, Scottish bank having been founded in 1695. They are a popular high street bank that became part of the Lloyds Banking Group in 2001, along with the Lloyds Bank and more, to offer more than 150,000 UK businesses more than 320 years of combined banking experience. The Bank of Scotland are not to be confused with the Royal Bank of Scotland, which are part of a different banking group.

See our full Bank of Scotland business bank account review of features, fees and how they compare against other online and high street bank accounts.

Bank of Scotland pros & cons

Pros of Bank of Scotland

• Account switching service available
• Free banking period
• Range of products for businesses of all sizes
• Competitive monthly account fee

Cons of Bank of Scotland

• Monthly account charges
• Branch network limited to Scotland
• Poor reviews for customer service

Bank of Scotland business current accounts

Bank of Scotland offer two current accounts, one for new businesses and another for larger, more established businesses. The accounts are:

• Start-up & Small Business Account - an account specifically for startup businesses that are expecting to generate an annual turnover of less than £3 million. You get the first 12 months fee-free and then you'll have to pay a £7 monthly account fee.
• Business Current Account - their standard bank account for all other businesses with turnover over £3 million per annum. You'll have the choice of two tariffs, one that's best for cashless businesses and the other for those that use more cash and cheques services.

These are the costs associated with Bank of Scotland's business bank accounts:

Eligibility

To be eligible for a Bank of Scotland account you must:

• Be a sole trader, partner or director
• Be a UK resident (all owners must be UK residents, if applicable)
• Be a UK-based business
• Be 18 or over
• Need the account for business use

There is specific criteria depending on which product you choose. For example the two bank accounts require your yearly turnover amount to be above or below £3 million.

Opening an account

Here's how to open a Bank of Scotland business account:

1. To open online download Bank of Scotland's app from the App Store or Google Play or sign up from their website
2. To open in store find your nearest Bank of Scotland and head on in
3. Complete their application - Bank of Scotland will confirm your eligibility
4. Verify your ID - with photo ID such as a passport or photocard driving licence
5. Approvals can take up to 4 weeks

Overdrafts

Bank of Scotland offer arranged business overdrafts from £500 up to £25,000, for businesses that turnover less than £3 million or between £3 and £25 million

The typical interest rate is 10.65% with arrangement fees that start at £12 per month for overdrafts between £500 to £5,000 and 1.99% annual fee (£120 min.) for overdrafts of £5,001 to £25,000.

For businesses that require an overdraft of more than £25,000, rates and fees can be discussed upon application.

Bank of Scotland savings accounts

The Bank of Scotland offer business savings accounts to their customers. They have a fixed term, instant access and a notice account available:

• Instant Access Account - an account that has instant access, meaning you can move your money as much as you'd like with no penalties. You can open an account with just £1 and you'll receive 1% AER interest on your savings.
• Notice Accounts - there is a 32 and a 95 day notice account. Both require a minimum deposit of £10,000 and you'll have to wait the full notice period to access your funds. Businesses need an annual turnover of more than £3 million to be eligible for the 95 day account.
• Fixed Term Deposit - fixed term savings from overnight to three years with interest rates ranging from 1.21% to 2.80% AER. Withdrawing before your agreed term ends will result in withdrawal fees.

Here's a summary of the Bank of Scotland's business savings accounts:

Bank of Scotland reviews

On the App Store Bank of Scotland is rated 3.8 stars from 420 ratings.

They score similarly on Google Play with 3.4 out of 5 stars, from over 680 reviews.

While on Trustpilot the Bank of Scotland only get a 1.6 star rating from over 700 customer reviews.

Information correct as of 10th September 2024.