Lloyds Bank Business Current Accounts’ Review

Lloyds Bank has a long history of providing business banking services in the UK and is considered one of the Big Four clearing banks. 

Business customers can choose from a wide range of accounts including the Business Account, Treasurer’s Account and Foreign Currency Account. 

But which is right for your business?

Lloyds Bank Business Account

Monthly Fee

£0.00

New customers can get a free account for 12 months.

Bank Transfers

100 free per month then 20p

Card Purchases

£0.00

Overdraft

Yes

FSCS Protection

Yes

Our Rating

Accessibility

Manage your account via online banking, the mobile app, telephone banking, or in person at a Lloyds or Post Office branch.

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Eligibility Criteria

– You must be at least 18 years old
– You are a sole trader or the only director of a limited company
– You have an annual turnover of less than £25 million
– Only one person needs to access the account
– You are a UK resident
– Your business is based in the UK
– You are applying for your first bank account with Lloyds

Lloyds Bank Treasurer’s Account

Monthly Fee

£0.00

Bank Transfers

£0.00

Card Purchases

£0.00

Overdraft

Yes

FSCS Protection

Yes

Trustpilot Score

4,784 Reviews, average rating of 1.7/5

Accessibility

Manage your account via online banking, the mobile app, telephone banking, or in person at a Lloyds or Post Office branch.

See Deal

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Eligibility Criteria

– Be a non-profit organisation like a charity, church, club or society
– Use the account for business only
– Be aged 18 or over
– Have an annual turnover of less than £50,000
– You are a UK resident
– Your business is based in the UK

Our Verdict

Lloyds’ business banking services are well-suited for businesses that prefer a reputable, established bank with various financial products, value multiple account management channels and need to deposit cash and cheques. However, it might not be ideal for those seeking integration with existing accounting software, preferring a digital-only banking approach, requiring a larger overdraft facility, or needing high transaction volume capabilities.

One of Lloyds’ key advantages is its free initial banking period. New Business Current Account customers enjoy 12 months of free banking, and the first 1000 electronic transactions each month are free, which can significantly reduce costs for startups and small businesses. 

However, LloydsBank has a complex fee structure, and fees for cash deposits, cheque processing, and international payments can also become costly, particularly for businesses with high transaction volumes. 

Although functional, the mobile app has been criticised for its lack of advanced features and technical issues, particularly on newer devices. Lloyds’ Business Accounts also do not integrate with other accounting software beyond the Business Finance Assistant, potentially limiting comprehensive financial management.

Pros & Cons

Pros

1. Account Options: Lloyds offers various accounts tailored to different business needs, including specific accounts for non-profits, schools, credit unions, and businesses dealing in foreign currencies.
2. Free Banking Period: New Business Current Account customers enjoy 12 months of free banking, which can be a significant cost-saving for startups.
3. Free Transactions: Business Account customers enjoy the first 100 electronic transactions each month free, helping businesses manage costs effectively.
4. Convenient Account Management: Accounts can be managed online, through the mobile app, in a branch, or via phone, providing flexibility in how businesses handle their banking needs.
5. Accounting Software Access: Business Finance Assistant is free for account holders, which helps manage finances more efficiently.
6. Support for Cash and Cheque Deposits: You can pay cash and cheques into your account at Lloyds branches and Post Offices. The mobile app can also deposit cheques up to £10,000 a day. 
7. FSCS Protection: The Financial Services Compensation Scheme covers deposits up to £85,000, providing peace of mind.
8. Flexible Overdraft and Credit Options: Businesses can apply for an overdraft or a business credit card, providing access to additional funds when needed.

Cons

1. Account Fees After Free Period: After the initial 12-month free period, the Business Bank Account incurs a monthly fee of £8.50, which could add up over time.
2. High Transaction Fees: Charges for cash deposits, cheque processing, and international payments can become costly, especially for businesses with high transaction volumes.
3. Complex Fee Structure: While the first 100 transactions are free, businesses might find the fee structure complicated. This complexity can make it challenging to predict monthly costs accurately, especially for companies with varying transaction volumes.
4. Foreign Currency Account Restrictions: The Foreign Currency Account has specific eligibility criteria, including a high annual turnover requirement, which limits access for smaller businesses.
5. Customer Service Issues: Customer reviews on platforms like Trustpilot indicate dissatisfaction with customer service, including long wait times and unhelpful responses.
6. Technology Shortcomings: While functional, the mobile banking app has received criticism for lacking advanced features and having technical issues, especially on newer devices.
7. Limited Integrations: Apart from Business Finance Assistant, the Lloyds Business Account can’t be integrated with other software or tools, preventing businesses from managing their finances more effectively.

Lloyds Bank At A Glance

Item	Lloyds Bank Details
Bank Accounts	Business Current Accounts 1. Business Bank Account 2. Treasurer’s Bank Account 3. School Bank Account 4. Credit Union Account 5. Foreign Currency Account 6. Commercial Designated Client Account 7. Designated Client Account 8. Commercial Undesignated Call Account. 9. Clients’ Call Account. Business Deposit Accounts 1. Instant Access Account 2. 32-Day Notice Account 3. 95-Day Notice Account 4. Fixed Term Deposit Account
Pricing	Varies depending on the account. Eligible Business Bank Account customers can get an account for free for 12 months.
Overdraft	You can apply for up to £5,000 across an overdraft or business credit card.
Ease of Use	Multiple ways to manage your account, including online banking, business mobile app, telephone banking or in-person at a Lloyds or Post Office branch.
Security	FSCS protects eligible deposits up to £85,000 and offers real-time fraud monitoring, a Fraud Guarantee, biometric login, and strong customer authentication.
Customer Support	In-person at a branch, mobile virtual assistant or by telephone between Monday and Friday, 9 am to 5 pm (excluding bank holidays).
Reviews	“Bad” average Trustpilot rating of 1.7 out of 5 based on 4,784 reviews.
Eligibility Criteria	Must be at least 18 years old, a UK resident, and a UK-based business. Additional eligibility requirements for specific accounts, including turnover and business type.
Additional Information	Free access to Business Finance Assistant accounting software.

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

Lloyds’ Banking Services may be suitable for you if:

• You prefer the reliability of a well-established banking provider. 
• You want to access various financial products, including loans and credit cards. 
• You want the flexibility of managing your account in person and online.
• You need to be able to deposit cash and cheques. 
• You don’t need access to additional features like saving spaces or payment links. 

Lloyds’ Business Banking Service may not be suitable for you if:

• You want to integrate your bank account with your existing accounting software. 
• You prefer digital-first banking solutions and don’t need access to in-person services.
• You need a larger overdraft facility than £5,000.
• You require high levels of personalised service. 
• You need high transaction volume capabilities.

Products and Features: Lloyds’ Business Banking Services

Business Bank Account

Best For: Businesses with an annual turnover of less than £25,000

Key Features:

• New Business Current Account customers can get a free account for the first 12 months.
• Visa business debit card with no annual fee. 
• You can deposit cash at Lloyds and Post Office branches.
• Conveniently deposit cheques up to £10,000 a day through the app, or at a Post Office or Lloyds branch. 
• Make payments of up to £250,000 per day via mobile banking. 
• Free ATM withdrawals. 
• Apply for up to £5,000 across an overdraft or business credit card. 
• Easily manage your account online, through the mobile app, in your local Lloyds branch or over the phone.
• 100 free bank transfers a month.
• Business Finance Assistant accounting software is free for account holders.

Treasurer’s Account

Best For: Non-profit organisations, including charities and community interest groups. 

Key Features: 

• Free everyday banking. 
• You must have an annual turnover of less than £50,000 to apply. 
• Visa debit card with no annual fee. 
• Convenient account management is available online, through the mobile app, over the phone, or at a  Lloyds branch. 
• Free accounting software through Business Finance Assistant. 
• You can add a 2nd account signatory for convenient account management.

Client Accounts

Best For: Professional businesses that need to hold money on behalf of their clients

Key Features:

• Commercial Designated, Designated, Commercial Undesignated and Client’s Call Accounts are all available. 
• Instant access to the account.
• You can make unlimited withdrawals on cleared balances. 
• Interest is calculated daily and paid monthly.
• You can have interest earned paid to your firm’s office account.

School Bank Account

Best For: State-funded schools and academies.

Key Features:

• No monthly account or everyday transaction fees.
• Independent schools are not eligible for this account.  
• Instant access to available cleared funds.
• Support from industry experts.

Credit Union Account

Best For: Community credit unions

Key Features:

• No monthly account fee and free everyday transactions. 
• You must be an approved credit union to apply.
• Instant access to cleared funds. 
• You can set up Direct Debits and standing orders. 
• Free access to Business Finance Assistance accounting software.

Foreign Currency Account

Best For: Businesses that frequently accept payments or hold money in foreign currencies. 

Key Features:

• Your business must have an annual turnover of between £3 million and £25 million to be eligible for an account.
• You can choose from various foreign currencies, including Euros and US Dollars. 
• Annual account fees range from £24 to £60. 
• Helps you to reduce the impact of exchange rate fluctuations and costs. 
• There’s no minimum balance requirement. 
• You can apply for an overdraft facility. 
• You must transfer money from a GBP business account to your Foreign Currency Account.

Savings Accounts

This article focuses on Lloyds’ business current accounts. However, In addition to their range of business current accounts, Lloyds also offers several savings accounts, including an Instant Access, two Notice or a Fixed Term Account.

Pricing and Fees Breakdown

There are no everyday banking charges for the Lloyds School Bank Account, Credit Union Account, Treasurer’s Account, and Client Accounts. 

The fees in the table below show some of the costs associated with the Business Bank Account:

Service	Fee
Account fee	Free for the 1st 12 months for new current account customers, then £8.50 per month per account.
Money paid in at a branch counter, ATM or depositpoint	85p per transaction.
Money paid in using an Immediate Deposit Machine, an Automated Deposit Machine Night Safe, mobile app, cheque imaging or a Post Office counter	Free
Automated credits	Free
Faster Payment credits	Free
Cash paid in at a branch counter, ATM, depositpoint, Nightsafe or Post Office	£1.50 per £100
Cash paid in using an Immediate Deposit Machine or Automated Deposit Machine	85p per £100
Cash withdrawn at a branch counter or Post Office	£1.50 per £100
ATM withdrawals	Free
Cheques paid in at a branch counter, ATM depositpoint, Nightsafe or Post Office	£1.00
Cheques paid in using an Immediate Deposit Machine or the mobile app	85p
Cheques paid out	£1
Electronic payments, including direct debits, faster payments and standing orders	100 free each month, then 20p
Non-Euro cash withdrawals	2.75% sterling transaction fee + 1.5% non-sterling cash transaction fee (minimum £1.50)
Euro cash withdrawals	2.75% non-sterling transaction fee.
Using your card abroad	2.75% non-sterling transaction fee.

Foreign Currency Account fees are shown in the table below:

Service	Fee
Account Fee	£24 per year for Euro Accounts of £60 per year for all other currencies.
International Payment via Internet Banking	£15
International Moneymover instructed in branch or by phone	£21 for standard, or £28 for express.
Receiving electronic payments from abroad outside of the EEA or UK	£2 fee for amounts up to £100, or £7 for large amounts.

Ease of Use & The Application Process

Lloyds Business Accounts are designed to be highly accessible and user-friendly, making them a convenient choice for businesses of all sizes.

The application process is straightforward. Most accounts are opened online or by telephone. The initial application can be completed within approximately 20 minutes, and applications are typically reviewed within two working days, making the process both quick and efficient.

Once opened, your account can be managed in many ways, including digitally through the comprehensive online banking platform Lloyds’ Online for Business or the user-friendly mobile banking app. Traditional account management methods, including telephone banking and in-person services at Lloyds and Post Office branches, are also available.

Safety & Security

Lloyds Bank is fully regulated by both the Financial Conduct Authority and Prudential Regulation Authority, with several security measures in place to protect your sensitive information, including:

• Real-Time Fraud Prevention: Lloyds conducts real-time checks to identify suspicious activity. If anything unusual is detected, you may be asked to call the Fraud team, and you’ll receive notifications via text and your account overview.
• FSCS Protection: Eligible deposits up to £85,000 are protected by the Financial Conduct Authority. 
• Biometric Authentication: You can log in securely using biometric information like fingerprints or Face ID. 
• Fraud Guarantee: Lloyds offers a Fraud Guarantee, which ensures that your money will be returned if you fall victim to fraud, provided you have acted carefully.
• Strong Customer Authentication: For added security, you may encounter an extra verification step when making online purchases, ensuring that your transactions are safe.
• Payment Verification: When setting up a new payment, Lloyds may display the name of the bank you’re sending money to, ensuring the payment reaches the correct account. An automated call may also ask you to confirm actions by entering a four-digit code sent to your Internet Banking screen or by post.

What Lloyds Bank Business Customers Say

Lloyds Bank has somewhat mixed customer reviews. On Trustpilot, Lloyds has a “bad” average rating of 1.7 out of 5, based on 4,784 reviews. In contrast, the business banking mobile app has a significantly higher rating, earning an average score of 4.1 out of 5 based on 3,100 reviews on the Apple App Store and 3.9 out of 5 based on 6,400 reviews on the Google Play Store.

The most common customer comments are:

Positive Reviews

• Excellent customer service with prompt, professional assistance.
• Quick and efficient account setup and address amendments.
• User-friendly online banking tools.
• Personalised service and effective handling of both routine and urgent matters.
• Long-term loyalty due to positive experiences with branch staff and overall reliability.

Negative Reviews

• Significant dissatisfaction with service inefficiencies, especially cash withdrawals.
• Inadequate assistance from staff and unnotified service cancellations.
• Issues with online banking and difficulties accessing funds.
• Reports of long delays in processing applications and unexpected account closures.
• The mobile app was criticised for poor iPad interface and technical issues such as frequent crashes.

Additional Information About Lloyds Bank

Lloyds Bank, founded in Birmingham in 1765 as Taylors and Lloyds, is recognised as one of the UK’s “Big Four” clearing banks. 

Lloyds is part of the Lloyds Banking Group, which was formed in 2009 and includes other well-known UK financial institutions like Halifax, Bank of Scotland and Scottish Widows. 

This dedication was acknowledged when it was awarded Best Service from a Business Bank at the Moneyfacts Business Awards 2022, highlighting its position as a trusted and reliable partner for businesses across the UK.

How Lloyds Bank Stacks Up Against The Competition

Feature	Lloyds Bank	Barclays	RBS	HSBC
Business Current Account Options	9	4	4	6
Overdraft	Up to £5,000	Up to £50,000 unsecured	Up to £50,000 unsecured	Up to £30,000 – £100,000 depending on account
Cash & Cheque Deposits	✅	✅	✅	✅
Mobile App	✅	✅	✅	✅
Account Integrations	Business Finance Assistant	FreshBooks	FreeAgent	❌
FSCS Protection	✅	✅	✅	✅
Learn More	Visit Lloyds Bank	Visit Barclays	Visit RBS	Visit HSBC

Lloyds Bank FAQs