Santander Business Banking

About Santander

Santander are a UK bank that are owned by the Spanish Santander Group, which formed in 1857. There were many mergers that took place from the time that Santander first entered the UK, in 1988, to when they finalised their rebranding at the end of 2010. Fast-forwarding to today, they are one of the largest financial services companies with over 24 million customers and 500 plus UK branches. Santander also offer private banking with Cater Allen Private Bank.

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

Santander pros & cons

Pros of Santander

• A wide variety of accounts to choose from
• Offers a wide range of products and features
• Overdrafts available on request

Cons of Santander

• Not rated highly on Trustpilot
• High monthly fees

Santander business current accounts

Santander offer two current accounts to registered businesses with simple banking needs.

They've won Moneyfacts' Best Business Current Account Provider 19 years in a row. These are the accounts:

• Business current account - this is their standard bank account which costs £7.50 per month, though it is free for 18 months for new businesses.
• 1|2|3 business current account - Santander's award winning account that offers cashback (up to £300 per year) and interest (on positive balances) for £12.50 each month (this is reduced for new and switching customers).

Santander's standard current account provides 18 months free banking for startups, whereas the 1|2|3 account offers a reduced fee of £5 for 18 months for startups and for a year for switching businesses.

The standard fees outside any promotional periods for Santander accounts are:

Overdrafts

Santander offer businesses overdrafts starting at a £500 limit, up to £25,000.

The typical interest rate is 10% with arrangement fees of 1% the overdraft limit, where £50 is the minimum you pay.

Eligibility

To be eligible for a Santander account you must:

• Be 18 or over and a UK resident
• Have up to two directors, owners (shareholders) or partners
• Have a UK registered business
• Be sole trader, partnership, limited liability partnership, or a private limited company
• Use the account for business purposes

When applying for a 1|2|3 business current or savings account, you must not already have a 1|2|3 account, otherwise your application won't be successful.

Opening an account

Here's how to open a Santander business account:

1. To open online download Santander's app from the App Store or Google Play
2. To open in store find your nearest Santander and head on in
3. Complete their application - Santander will confirm your eligibility
4. Verify your ID - with photo ID such as a passport or photocard driving licence
5. Once approved you can start banking

Santander business savings accounts

Santander offers multiple savings accounts, including easy access and fixed deposit accounts:

• Business Everyday Saver - an instant access account that can be opened with £1 and allows you to add or remove money whenever you want to. You'll receive 1.05% AER variable interest.
• Business Reward Saver - an easy access account that requires a £1 minimum deposit, with no balance limits. If you make a withdrawal you'll get a rate of 0.40%, if no withdrawals are made then the interest rate offered is 1.40% AER.
• Fixed Rate Business Bond - a one year fixed term account that can be opened with £5,000 and allows a maximum savings balance of £5 million. The interest rate is 3.50 fixed AER.

Here's a summary of Santander's business savings accounts:

Santander reviews

Santander have a bad 1.5-star rating on Trustpilot, from more than 7,600 reviews, with 85% rating them 1-star. These also include non-business reviews.

The Santander business app is rated 4.6 out of 5 stars, on the App Store, from over 5,500 ratings.

While the app on Google Play scores 4.5 stars from over 1,600 business reviews.

Information correct as of 12th September 2024.