Allica Bank Business Rewards Account Review

After being granted its UK banking license in 2019, Allica Bank is becoming an increasingly popular challenger bank.

Allica’s business current account, known as the Business Rewards Account, was launched in 2023 and offers a range of competitive features. 

In this article, we’ll break down the pros and cons of Allica Bank’s business banking services so you can decide if it’s the right option for you.

Allica Bank Business Rewards Account

Monthly Fee

£0

Bank Transfers

£0

Card Purchases

£0

Overdraft

No

FSCS Protection

Yes

Our Rating

Accessibility

Access your Allica Bank account via the web or the mobile app

 

Open Account

On Allica Bank’s Website

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Eligibility Criteria

– You must be a UK resident and aged 18 or older.
– You must have a minimum balance of £50,000 or more in your account or must have a loan product with Allica.
– Your business must be incorporated for at least 12 months.
– Businesses operating from outside the UK are excluded.

Our Verdict

The Allica Bank Business Rewards Account is well-suited for established businesses that operate primarily online. 

The account stands out with its fee-free structure, which includes free Faster Payments, BACS, and domestic card payments. There are also no fees for overseas card transactions or bulk payments, making it a cost-effective choice for international businesses.

Its cashback feature provides up to 1.5% on card spend, while the instant-access Savings Pot at 4.08% AER offers a competitive return on surplus funds.

Customers can also get personalised support through a dedicated relationship manager, tailoring the service to individual businesses. 

However, the absence of physical branches might deter businesses that prefer in-person banking services. Additionally, its eligibility requirements, including a minimum balance of £50,000 and a 12-month incorporation period, could exclude startups and smaller businesses. The lack of support for cash and cheque deposits, overdraft facility, and limited international payment options (only Euros and US dollars) could also pose challenges for some businesses.

Pros & Cons

Pros

1. Fee-Free Banking: The account has no monthly fees, provided you meet the eligibility criteria, and many services, such as Faster Payments, BACS, and domestic card payments, are free.
2. Cashback Opportunities: You can earn 1% cashback on your card spending, potentially increasing this to 1.5% once you spend over £10,000 in a month. This is ideal for businesses with high monthly expenditures.
3. Savings Pot: The account includes an attached instant-access Savings Pot feature, offering a competitive 4.08% AER (variable). 
4. Accounting Integrations: Allica Bank integrates with popular accounting software like Sage and Xero, allowing for automatic syncing of transaction activity. 
5. Personalised Service: Customers benefit from a direct line to their relationship manager, ensuring tailored support and advice. 
6. Customisable User Access: The account provides multiple director access and the ability to set up two-person authorisation for payments.
7. Bulk Payments with No Extra Fees: Allica Bank allows you to make bulk payments without additional fees, which is perfect for businesses that need to process payroll.
8. No Fees for Overseas Card Use: The bank does not charge additional fees when you use your Allica Bank card abroad; the only charges are based on the Visa exchange rate.

Cons

1. No Physical Branches: The absence of physical branches may be a drawback for businesses that prefer face-to-face banking interactions or require in-branch services. 
2. Eligibility Requirements: The account is designed for established businesses that have been incorporated for at least 12 months and typically maintain a balance of £50,000 or more. It is inaccessible to startups or smaller businesses that do not meet these criteria.
3. Limited International Payment Options: While international payments can be made through Wise, the account only supports transfers in Euros and US dollars. 
4. No Overdraft Facility: The account does not offer an overdraft facility, which could be a drawback for businesses needing occasional access to additional funds for cash flow management.
5. Cash and Cheque Deposits Not Supported: The account does not allow cash or cheque deposits, which could be a significant limitation for businesses that still handle physical payments.
6. Mobile App Limitations: While the mobile app is generally well-regarded, there are limitations, such as the inability to add cards to Apple Wallet or Google Pay and frequent password reset prompts.

Allica Bank At A Glance

Item	Allica Bank Details
Bank Accounts	Business Current Accounts 1. Business Rewards Account Business Savings Accounts  1. Instant Access Savings Pot (attached to the Business Rewards Account) 2. Easy Access Savings Account (Issue 2) 3. 95-Day Notice Savings Account 4. 180-Day Notice Savings Account 5. 6-Month Fixed-Term Savings Account 6. 12-Month Fixed-Term Savings Account
Pricing	No monthly account fees whilst you maintain eligibility, plus free Faster Payments, bulk payments, Direct Debits, card payments and ATM withdrawals.
Overdraft	No facility.
Ease of Use	Managed solely through the online banking system or highly-rated mobile app.
Security	FSCS protects eligible deposits up to £85,000. Multi-factor authentication, including biometric verification.
Customer Support	Dedicated relationship manager. Live chat and message through online banking, email and telephone support are available Monday to Friday (excluding Wednesday) from 9 am to 5 pm and Wednesday from 9.30 am to 5 pm.
Reviews	“Excellent” Trustpilot rating of 4.4 out of 5 based on 978 reviews.
Eligibility	All owners and controlling persons must be UK residents over 18 years old. Business must be UK-based and incorporated for at least 12 months. Must maintain a balance of at least £50,000 or have an existing Allica Bank loan.
Additional Information	You can earn up to 1.5% cashback on eligible debit card spend.

Who Should Use Allica’s Business Banking Services (And Who Shouldn’t)?

Allica Bank’s business banking services are most suitable for:

• Businesses that have been incorporated for at least 12 months typically maintain a balance of £50,000 or more.
• Businesses that prefer to manage their account entire online.
• Companies that frequently need to make bulk payments, such as for payroll.
• Businesses that value personalised support and advice.
• Companies that only make and accept electronic payments. 
• Businesses that need to make international payments in Euros or US dollars.
• Businesses that want to earn interest on surplus funds without committing to long-term savings products.

Allica Bank’s business banking services are less suitable for:

• Startups or smaller businesses that have not been incorporated for 12 months or do not maintain a high balance.
• Businesses that frequently deal with cash or cheque deposits.
• Businesses that occasionally require access to additional funds through an overdraft.
• Businesses needing to make international payments in currencies other than Euros or US dollars.
• Businesses or owners who prefer using mobile wallets like Apple Pay or Google Pay.
• Businesses that prefer to use in-person services.

Products and Features: Allica Bank Business Banking Services

Allica Bank provides various financial services, including a business current account, several savings accounts, mortgages and finance.

Business Rewards Account

Designed For: Established businesses that have been incorporated for at least 12 months. 

Key Features:

• No monthly account fees provided you continue to meet the eligibility requirements. 
• You must be an established business that:
  • Has been incorporated for at least 12 months
  • Maintains a balance of at least £50,000 or
  • Already has a loan with Allica Bank.
• Visa debit card with up to 1.5% cashback on eligible card spend. 
• Free card payments and ATM withdrawals.
• Free Faster Payments and BACS
• Can’t deposit cash or cheques. 
• Make international payments in Euros and US dollars through Wise. 
• Integration with Sage and Xero account software.
• Manage your account online or through the mobile app.
• Open an instant access Savings Pot that can earn up to 4.08% AER (variable)
• Your dedicated relationship manager provides support. 

Savings Accounts

This article is focused on the Allica Business Rewards Account, but it’s also worth noting that Allica offer several savings accounts.

Although not a separate savings account, Business Rewards Account customers can access the Allica Instant Savings Pot, earning a competitive rate of 4.08% AER Gross (variable). Interest is calculated daily and paid monthly on balances between £1 and £5 million. You can make unlimited free withdrawals whenever you like into your linked Allica. Business Rewards Account.

Separate savings account options include an Easy Access Savings Account, 95 and 180-day Notice Accounts and 6-month and 12-month Fixed Rate Accounts.

You can read our full Allica Bank Business Savings Account review here.

Pricing and Fees Breakdown

One of the main advantages of the Allica Bank Business Rewards Account is that it has minimal fees.

The table below shows the relevant charges.

Service	Fee
Monthly Fee	Free
Faster Payments (incoming and outgoing)	Free
CHAPS	Free for incoming payments, £20 per outgoing transaction
Bulk Payments	Free
Direct Debits	Free for outgoing transactions. Incoming transactions not available
Direct Credits	Incoming transactions not available. Outgoing transaction free
Card Payments	Free domestic payments. International payments subject to Visa exchange rate. No additional fee charged.
ATM Withdrawals	Free

Although Faster Payments and BACS payments are free, they are limited to 100 outgoing payments. Any payments made above this limit may incur a 15p per payment fee.

Ease of Use and The Application Process

Allica Business Banking is managed exclusively through the mobile app and online banking platform, offering businesses convenient and efficient access to their accounts anytime. 

The online application process is straightforward and generally takes 3 to 5 working days to set your account up.

Allica integrates seamlessly with popular accounting software such as Sage and Xero, allowing businesses to sync transaction data automatically. This reduces manual data entry and ensures financial records are kept up to date with minimal effort. 

While the platform doesn’t support cash or cheque deposits, it does offer several electronic payment options, including free Faster Payments and BACS. You can also send bulk payments and international transfers facilitated through Wise.

The absence of an overdraft facility and the inability to add Allica cards to mobile wallets like Apple Pay or Google Pay might be limiting for some users. However, the benefits, such as earning up to 1.5% cash back on card spend and access to a savings pot with a competitive interest rate, could outweigh these inconveniences.

Safety and Security

Allica Bank is a fully regulated bank and has a range of security measures in place to ensure the safety of your personal and financial information, including:

• FSCS Protection: Eligible deposits up to £85,000 are protected by the Financial Services Compensation Scheme in the event of institutional failure. 
• Biometric Recognition: The mobile app restricts access to your account by using your device’s built-in security features, such as facial recognition. 
• Identify Confirmation: You will be prompted to open the mobile app to confirm your identity when performing certain activities, such as adding a new payee using the online banking system.

What Allica Bank Customers Say

At the time of writing, Allica Bank had an “excellent” average Trustpilot score of 4.4 out of 5 based on 978 reviews. Its mobile banking app has an equally high rating, earning 4.7 out of 5 on the Apple App Store and Google Play Store. 

The most common customer comments are:

Positive Reviews

• Users frequently highlight the efficiency of fund transfers, especially the quick payment processing times.
• Customers appreciate how quickly and easily they can open an account with Allica Bank, finding the procedures straightforward and well-executed.
• The cashback rewards programme is another feature that receives praise, especially for businesses that frequently use their Allica Bank cards for expenses.
• Positive reviews frequently mention the attractive interest rates offered by Allica Bank.
• The bulk payment feature receives positive feedback for its utility and ease of use, particularly when managing payroll.
• Many customers appreciate Allica Bank’s personalised experience, particularly the direct access to a relationship manager. 
• The mobile app’s straightforward design and ease of use are appreciated, particularly during the initial setup.

Negative Reviews

• Several users report technical difficulties with the mobile app and online banking platform, including frequent crashes, login issues, and non-functional features such as CSV downloads. 
• Some customers express frustration with Allica Bank’s poor communication, especially when dealing with account issues or changes to personal details.
• While initial interest rates are praised, many users have noted that these rates become less competitive over time.
• Some customers criticise Allica Bank for lacking transparency in resolving disputes and handling account discrepancies.

Additional Information About Allica Bank

Allica Bank is a British challenger bank explicitly designed to serve established businesses with between 5 and 250 employees.

After being granted its UK banking licence in September 2019, Allica has grown quickly, becoming profitable within three years and lending over £2 billion to UK businesses. 

The bank’s success is further underscored by its accolades, including being named the UK’s fastest-growing private company in The Sunday Times 100 in June 2024 and the fastest-growing fintech ever in Deloitte’s 2023 UK Tech Fast 50. 

In 2023, the bank launched its Business Current Account, further enhancing its offerings, and was recognised as the Best Business Finance Provider at the British Bank Awards.

How Allica Bank Stacks Up Against The Competition

Feature	Allica Bank	Revolut	Wise	RBS
Business Current Account Options	1	4	1	4
Overdraft	❌	❌	❌	Up to £50,000
Cash & Cheque Deposits	❌	❌	❌	✅
Mobile App	✅	✅	✅	✅
Accounting Integrations	Xero & Sage	Xero, QuickBooks, Sage & more	Xero, QuickBooks, FreeAgent & FreshBooks	FreeAgent
FSCS Protection	✅	❌	❌	✅
Learn More	Visit Allica Bank	Visit Revolut	Visit Wise	Visit RBS

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