Allica Bank might only have launched in 2020, but it has made a big impression. Specially designed for small and medium-sized businesses, the Allica Bank Business Saving Account offers award-winning products with competitive interest rates.
In this Allica Bank Business Savings Account review, we’ll examine the pros and cons of their product range and answer your most frequently asked questions.
Allica Bank Business Savings Account Review: My Verdict
Allica Bank offers competitive business savings account with decent interest rates, though you will need a minimum of £20,000 to take advantage.
Winner of the Business Business Finance Provider at the 2022 British Bank Awards, they offer interest rates that are currently around 5% and no account fees, making it an attractive option to grow your business’s savings.
There are no physical branches; but their user-friendly online management system and helpful UK-based customer service more than make for this.
Key Features of Allica Business Savings
- Guaranteed interest rate: Ranging between 4.8% and 5.10% AER, a guaranteed competitive interest rate means you’ll know how much growth your savings will achieve.
- Choice of Term: Choose from a 6, 12 or 24-month Fixed Term Savings Account to suit your needs.
- Minimum and Maximum Balance: Minimum opening deposit of £20,000 and a maximum account balance of £2,000,0000.
- No Account Fees: You won’t be charged an account fee for holding an Allica Business Savings Account.
- No Withdrawals: You can only access your savings once your account matures.
- No Cooling Off Period: Once your account is open, you can close it once it reaches maturity.
- Deposit Protection: Deposits up to £85,000 are covered by the FSCS, giving you peace of mind your savings are secure.
- Customer Support: A UK-based support team is ready to answer any queries.
- Quick Application Process: Apply online and open your account faster.
- Easy Account Management: Use online banking through the Allica website or the mobile app to track your balance and update your details.
Pros & Cons of Allica Bank Savings
Pros
- Competitive Interest Rates: You can grow your savings faster with great interest rates ranging between 4.8% and 5.10% AER.
- Flexible Choices: They offer different types of business savings accounts, so you can choose the one that best suits your business’s needs.
- Easy Online Management: Conveniently manage your business savings accounts online through the Allica website or by downloading the app on the Apple Store or the Google Play Store.
- Transparent Fees: Allica are upfront about any fees associated with their business savings accounts so that you won’t be faced with unexpected charges.
- Helpful Customer Service: Their UK-based customer support is quick to help you if you need assistance.
- Fast Sign-up: Opening a business savings account is quick and straightforward.
- Award-winning finance provider, winning over ten awards in 2022, including Best Business Finance Provider at the British Bank Awards and Business Bank of the Year at the NACFB Patron Awards.
Cons
- No Physical Branches: There are no physical branches, but Allica Bank does have Relationship Managers who travel across England, Scotland and Wales to assist Business Rewards Account customers.
- Limited Support Hours: Customer service isn’t available 24/7, which could be an issue during emergencies.
- Higher Minimum Balances: Some Allica Bank Business Savings accounts have higher minimum balances than other banks, which might make them unsuitable for businesses with limited funds.
- Not as Familiar: Allica Bank is not as well-known as some larger banks, so that some businesses may prefer the familiarity of a more established institution.
- Fewer Extras: Allica Bank offers fewer perks or additional services than larger banks.
Eligibility Criteria for Business Savings
To be eligible for an Allica Bank business savings account, you must:
- Be a UK resident
- Be over 18 years old
- Be a UK-based business registered with Companies House
- Be either director or company secretary with authority and consent.
- Have a UK business account
- Have a valid and current email address
Ineligible Industries
Certain businesses are unable to open an account at Allicia Bank, including:
- Adult entertainment businesses
- Businesses that test animals
- Companies that make or sell weapons
- Businesses that make or sell nuclear technology or weapons
- Embassies and consulates
- Non-profit organisations
- Businesses that mine coal, lignite, oil, or natural gas
- Professional football clubs
- Casinos and gambling businesses, including online gambling
- Businesses that make or sell illegal drugs or “legal highs.”
- Marijuana businesses
- Dealers of precious metals and stones
- Charities that are not registered or regulated
- Companies that provide payment services or money transfer services
- Businesses that deal in cryptocurrencies
- Businesses that operate without licenses in industries that require licenses
Types of Allica Savings Accounts
Allica offers a range of savings options. From simply adding a savings pot to your business current account to three dedicated savings accounts, there is much to choose from.
This table explains the options in detail.
| Features | 6-Month Fixed Term (Issue 4) | 12-Month Fixed Term (Issue 17) | 24-Month Fixed Term (Issue 15) |
|---|---|---|---|
| Interest Rate (AER) | 4.80% | 5.10% | 5.05% |
| Gross Annual Interest | 4.74% | 5.10% | 5.05% |
| Term Length | 6 months | 12 months | 24 months |
| Investment Range | £20,000 – £2,000,000 | £20,000 – £2,000,000 | £20,000 – £2,000,000 |
| Interest Payment | Paid at maturity | Paid at maturity | Paid annually |
| Account Opening | Online, 14-day deposit window | Online, 14-day deposit window | Online, 14-day deposit window |
| Withdrawal Terms | No early withdrawals, No cooling-off period | No early withdrawals, No cooling-off period | No early withdrawals, No cooling-off period |
| Maturity Options | Contact before term end, Option to switch if higher rate available | Contact before term end, Option to switch if higher rate available | Contact before term end, Option to switch if higher rate available |
| FSCS Protection | Up to £85,000 | Up to £85,000 | Up to £85,000 |
Fixed-Term Business Savings Account
Allica Bank offers a fixed-term business savings account, which means that your interest rate is guaranteed and will not change for the duration of your term.
You can choose from three different terms, each with varying interest rates:
- The 6-month Fixed Term Business Savings Account comes with 4.80% AER and pays a gross annual interest of 4.74% at maturity.
- The 12-month Fixed Term Business Savings Account features a higher AER of 5.10%, with an annual 5.10% gross interest payment at maturity.
- The 24-month Fixed Term Business Savings Account offers an AER of 5.05%, with an annual 5.05% interest payout.
All three accounts have a flexible investment range from £20,000 to £2,000,000 and can be opened online within a 14-day deposit window.
As this is a fixed-term savings account, your money will be locked away, and you will only have access to it once your account matures. Early withdrawals are not allowed, and there is no cooling-off period if you wish to close your account before it reaches maturity.
Account holders will be contacted approximately 30 days before maturity, with the business savings team explaining your options, including the ability to switch to a higher rate if available.
Business Rewards Account
Existing Allica Bank Business customers are eligible for an Allica Business Rewards Account. Although this is a current account, not a dedicated business savings account, you can attach a savings pot. This savings pot acts similarly to an easy-access savings account where you can make unlimited deposits and withdrawals, giving you more financial flexibility.
If you’re not a current Allica Bank Business customer, you can join a waiting list to be notified when the Business Rewards Account becomes available.
Any money in your savings pot will earn up to 3.65% AER variable interest, and you can even earn up to 1.5% cashback on eligible card spend.
Fees and Charges for Business Savings
There are no fees associated with holding an Allica Fixed-Term Business Savings Account.
Allica Bank Online Banking Experience
The Allica Bank Business Savings Account is managed entirely online, from opening an account to making payments.
When you set up your savings account, you will be asked to create a password and memorable data to keep your account secure.
You can use online banking via the Allica website or download the Allica Bank app from the Apple Store or Google Play Store.
Through the app, you can update your details, monitor spending in your Business Rewards Account and track interest in your business savings account.
You may need to download the app to confirm your identity, taking advantage of its biometric security features.
I found the app to be easy to use and intuitive. However, as there is no in-app withdrawal feature, you’ll still have to use online banking, making it less convenient.
Customer Service at Allica Bank
Although Allica Bank doesn’t have physical branches in the UK, it has several ways you can access support, including:
- Dedicated relationship managers who travel across England, Scotland and Wales to provide convenient support for Business Rewards account holders
- A UK-based support team to help with any issues or answer queries between 9 am – 5 pm, Monday to Friday.
- Live chat and website messaging
Customer Reviews and Ratings
As of November 2023, the bank has gained 792 reviews on Trustpilot, achieving an impressive average rating of 4.5 out of 5, 75% of which gave Allica a perfect score.
Customers of Allica Bank have expressed high satisfaction on Trustpilot, describing their experiences as “outstanding” in terms of the ease of application process and “straightforward” for account opening. Additionally, savings schemes are praised for being “easy to understand” and offering “good” interest rates.
Allica Bank’s savings accounts boast a high TrustScore of 4.82 from 625 reviews on Smart Money People, with 86% of customers giving a 5-star rating, highlighting ease of use, competitive interest rates, and efficient online setup.
Similarly, the app experience has gained 387 reviews on the Apple Store, achieving an average rating of 4.8 out of 5 and 90 reviews on the Google Play Store, with an average rating of 4.3 out of 5.
Users praise the app’s smooth sign-up process and quick access to account details. However, there are a few suggestions for improvement, such as the absence of a withdrawal option in the app and issues with functionality after a recent update. Most users find the app reliable, intuitive, and well-designed, making their banking experience with Allica positive.
How to Open an Account
- Application: Apply for a savings account online through the Allica Bank website. A director or company secretary must make the application with permission and authority to open an account on the business’s behalf.
- Identity Checks: Allica Bank will verify the identity and address of 2 directors, shareholders and persons of significant control in your business. Anti-money laundering, fraud, and credit checks will be conducted, and additional screening checks may be undertaken using external agencies or documentary evidence.
- Approval: Once approved, you must deposit at least £20,000 into your account within 14 days from another UK bank account. This account must be held in the same business name as your savings account and should be where you wish to withdraw your savings at the end of the fixed-term period. All payments must be made in Pounds Sterling through Faster Payments or a transfer from another Allica account. CHAPS payments will not be accepted.
Alternatives to Allica Bank
| Bank | Max Interest Rate | Max Interest Rate | Max Interest Rate | FSCS Covered |
|---|---|---|---|---|
| Allica Bank | 5.10% AER | 6, 12 or 24 months | £20,000 | ✅ |
| Aldermore | 4.35% AER | 6 or 12 months | £1,000 | ✅ |
| Redwood | 4.85% AER | 12 or 24 months | £1,000 | ✅ |
| Cambridge & Counties | 5.20% AER | 12, 24 or 60 months | £10,000 | ✅ |
| Metro | 5.52% AER | 3, 6, 12 or 24 months | £5,000 | ✅ |
Allica Bank FAQs
Is Allica Bank Regulated?
Yes, Allica Bank obtained its full banking licence in September 2019 before launching in March 2020.
They’re regulated by the Financial Conduct Authority and the Prudential Regulation Authority, with deposits of up to £85,000 covered by the FSCS.
Can I Withdraw Money From My Allica Bank Business Savings Account?
If you invest your savings into a Fixed-Term Business Savings Account, you can only withdraw money after the specified period expires. You’re also not entitled to the usual 14-day cooling-off period.
However, you will have instant access to your savings if you use a Business Rewards Account with an attached savings pot.
How Often is Interest Credited to Allica Business Savings Accounts?
You’ll earn interest on your money from the day it is received in your business savings account.
Interest is calculated daily and will be credited at maturity if you have a 6 or 12-month Fixed Term Account or annually on the anniversary of your account opening for 24-month Fixed-Term Accounts.
What Happens When My Allica Bank Business Saving Account Mature?
Allica Bank will contact you approximately 30 days before your account is due to reach maturity to obtain instructions for the account balance.
You can change your maturity instructions online until 5 pm on the business day before the date your account matures.
If you don’t provide the instructions, your balance will be put into a Holding Account, which earns a variable interest rate of 0.2% AER.
