The Co-operative Bank Business Banking

About The Co-operative Bank

The Co-operative Bank are the only high street bank that has an ethical policy shaped by more than 320,000 of their own customers. This means that the way they do business is guided by the opinions of the communities that bank with them. The Co-operative Bank was first formed in 1872 and has since been on a mission to offer banking efficiency and financial sustainability to those that share their co-operative values.

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

The Co-operative Bank pros & cons

Pros of The Co-op Bank

• Award-winning charity account provider
• Offers a wide range of business accounts
• New customers get 30 months free banking
• Free account for FSB members
• High overdraft limits offered
• Competitive interest rates on savings

Cons of The Co-op Bank

• Poorly rated mobile apps
• Expensive banking fees

The Co-operative Bank business current accounts

The Co-operative Bank offers the choice of five different business current accounts, they are:

• Business current account - ideal for single director businesses or sole traders that don't often use cash or cheque services. There are no transaction fees for the first 30 months. The monthly fee after is £10.
• Business Directplus - this is for startups and SMEs, offering 30 months fee-free banking to new customers. The monthly account fee is £7.
• FSB account - this account is for members of the Federation of Small Businesses (FSB). The account comes with no monthly service charge or standard fees.
• Standard Tariff - comes with a super simple charging structure, with no changes depending on balance. The monthly service charge is £10.
• Cash Tariff - businesses that turnover a high volume of cash could benefit from this account, as it offers a low fee on deposited cash. Account fee is charged at £10 per month.

The Co-operative Bank's most popular current account, the Directplus account, comes with 30 months of free banking, available to all new customers.

Once the introductory period is over the monthly fee will be charged at £7 unless the average monthly account balance is more than £1,000, in which case the fee is waived, along with all other fees.

These are the fees associate with each Co-op business account:

Overdrafts

The Co-operative Bank offer businesses arranged overdrafts up to £250,000.

The arrangement fee is charged annually at 1.50% the overdraft limit, where £50 is the minimum. Though the fees are waived for FSB account holders.

Interest rates for arranged borrowing up to £25,000 are 10.48% representative EAR, and are discussed upon application for higher limits. Unarranged overdrafts are charged at 25.59% EAR.

Eligibility

To be eligible for The Co-operative business account you must:

• Be 18 or older
• Be a UK resident
• Be a sole trader, limited company, partnership or limited liability partnership
• Not have missed any personal credit obligations in the last 6 months
• Not have any County Court Judgements (CCJs) or have admitted bankruptcy over the last 6 years

Opening an account

Here's how to open a Co-operative Bank business account:

1. To open online download The Co-operative Bank's app from the App Store or Google Play or sign up from their website
2. To open in store find your nearest Co-operative Bank and head on in
3. Complete their application - The Co-operative Bank 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

The Co-operative Bank savings accounts

The Co-operative Bank offers the choice of three business savings solutions, to businesses that have a current account with them.

There are no minimum or maximum balance restrictions and interest is paid twice a year on all of the accounts:

• Instant Access - can be opened with as little as £1 and accessed whenever needed with no penalties. The interest earned on this account is at the rate of 1.63% AER.
• 35 Day Notice - you'll need to give 35 days of prior notice before you can withdraw from this account. The interest rate is calculated daily at 2.13% AER.
• 95 Day Notice - 95 days of notice are required before you can access your money. Doing so will provide you with the highest interest rate The Co-operative Bank offer at 2.51% AER.

Additional business services

The Co-operative Bank offer services ranging from business lending to charity bank accounts - of which they are an award winning provider, winning Moneyfacts' Best Charity Banking Provider five times.

The Co-operative Bank reviews

The Co-operative Bank gets a great rating of 4.2 stars on Trustpilot, from over 10,000 reviews, with 56% giving them 5 stars.

The Co-op business app on the App Store only gets 1.4 stars, based on nearly 200 ratings.

Similarly, the business app on Google Play averages 1.5 out of 5 on Google Play, from 300 reviews.

Information correct as of 12th September 2024.