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Bank of Scotland is the oldest bank in Scotland, providing banking services to customers for over 300 years. Since 2009, it has been part of the Lloyds Banking Group, which also includes providers such as Lloyds Bank and Halifax.
Bank of Scotland offers a range of current accounts for businesses and charities that come with access to a selection of services, including accounting software and lending facilities.
Bank of Scotland Small Business Bank Account
Free for 12 months
Free
From free
12 months’ free day-to-day business banking for new businesses
- Must be a sole trader, partner or company director and be aged 18 or over
- Must have an annual turnover of less than £25m
- Must not already have a Bank of Scotland business account for this business
- A Guarantee may be required for Limited Companies and Limited Liability Partnerships
Eligibility Criteria
- Must be a sole trader, partner or company director and be aged 18 or over
- Must have an annual turnover of less than £25m
- Must not already have a Bank of Scotland business account for this business
- A Guarantee may be required for Limited Companies and Limited Liability Partnerships
This product may be one of a range offered by this provider. Always check terms & conditions for suitability before applying.
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Key features
- FSCS protectionEligible deposits up to £85,000 are protected by the Financial Services Compensation Scheme (FSCS).
- 24/7 supportContact the Bank of Scotland team and get support any time via the app or X (formerly Twitter).
- Lending facilitiesBank of Scotland offers a range of business borrowing options, including overdrafts and credit cards.
- Accounting softwareBank of Scotland offers three months’ free accounting software to business account holders.
Bank of Scotland business account pros & cons
Pros
- There is an introductory period of 12 months with no monthly maintenance fee for new customers.
- The account can be managed via the mobile app, online via business internet banking or over the phone.
- The account comes with access to a UK-based business management team.
- Customers in Scotland can access support at a branch.
- There is 24/7 customer support via X (formerly Twitter).
Cons
- There is a monthly fee after the introductory fee-free period.
- With few branches outside Scotland, Bank of Scotland may not be best suited to those who don’t reside there, though you don’t have to be based in Scotland to apply.
The pros and cons featured here are chosen by us based on a combination of our expert, research-based opinions and an exclusive survey of UK business owners and decision makers. The survey was conducted on behalf of NerdWallet UK in December 2022 to identify the business bank account features that people feel are most important. They are unlikely to be the only product features and restrictions that you should consider. Pros and cons are subjective and you should align them to your own personal and business circumstances. Information was correct at the time of publication but may have changed since.
Bank of Scotland business account full review
Bank of Scotland was founded in 1695 and has been at the vanguard of banking several times since. It claims to have been the first bank in Europe to issue paper currency, as well as the first bank in the UK to start using computers to process transactions, in 1959.
Today, the Bank of Scotland offers current accounts for small businesses and start ups, as well as larger businesses. It also offers specialist accounts for schools, community groups and professional practitioners.
Across all these accounts, customers can get access to Bank of Scotland’s free accounting software.
Business account
Bank of Scotland’s business account is limited to businesses with an annual turnover of under £25 million.
There is no monthly fee with its 12-month introductory offer, though an £8.50 monthly maintenance fee follows this deal. Certain transactions are subject to charges from the moment you open a Bank of Scotland business account, such as cash and cheque deposits or withdrawals.
Community account
The community account from Bank of Scotland offers separate options for schools, credit unions and treasurers.
Each offers free day-to-day banking and no monthly fee for eligible applicants, but charges may apply for certain transactions, such as CHAPS and international payments.
Bank of Scotland business account features: at a glance
| Monthly fee | £8.50 (small business account, for businesses with an annual turnover less than £25 million) |
| Transaction fees | Yes |
| Account management | Via mobile app Online via Business Internet Banking At a branch (primarily in Scotland) Over the phone |
| FSCS protection | Yes |
| Set-up time | 3 days on average |
| Cash deposits | Yes |
| Cheque deposits | Yes |
| Access to other banking services | Yes |
| International payments | Yes (fees apply) |
| Customer service | 24/7 support via X (formerly Twitter) Via virtual assistant In app At a branch (primarily in Scotland) Via phone: 0345 300 0268 Monday to Friday, 7am to 8pm, and Saturday, 9am to 2pm, except on UK bank holidays |
| Multiple user access | Yes |
| Create and send invoices | Yes (free via the Business Finance Assistant) |
| Integration with accounting software tools | Yes |
Where Bank of Scotland business account stands out
Customer support: You can contact Bank of Scotland via the app, online, over the phone and at a branch (if based in Scotland). There is also 24/7 support via the app or social media.
Introductory offers: New customers can get 12 months with no monthly account fees, as well as free access to Bank of Scotland’s accounting software.
Account access: You can manage your account over the phone, online, via the app or, if you’re based in Scotland, in a branch.
Where Bank of Scotland business account falls short
Limited branch access: If you’re based outside Scotland, it’s likely you won’t have access to a Bank of Scotland branch.
Customer reviews: Bank of Scotland has a ‘bad’ rating on Trustpilot, though this is based on a relatively small number of reviews and is for the bank itself rather than its business offering alone.
Monthly fees: The business account’s monthly fee of £8.50 per month, which applies once the 12-month introductory offer ends, is higher than the numerous free business bank accounts available on the market.
Bank of Scotland business account customer reviews
Bank of Scotland has a ‘bad’ rating of 1.6 out of 5 on Trustpilot, based on over 720 reviews. However, these reviews are for Bank of Scotland’s services in general and are not specific to its business banking.
The Bank of Scotland business banking app has a rating of:
- 3.8 out of 5, based on over 420 reviews on the app store
- 3.4 out of 5, based on over 680 reviews on Google Play
This information is correct as of 2 October 2024.
Bank of Scotland business account eligibility
To be eligible to open a business current account with Bank of Scotland, you must:
- be a sole trader, partner or director of a limited company
- be at least 18 years old
- have an estimated annual turnover of under £25 million
- not have an existing account with Bank of Scotland for this business
Other accounts offered by Bank of Scotland such as the charity account may have different eligibility criteria. You can look at the Bank of Scotland website or contact the bank directly for more details.
How to apply for a Bank of Scotland business account
To apply for a Bank of Scotland business account, you need to:
- choose which account you’d like to apply for
- gather the information you’ll need (such as your business and personal details)
- apply online, by phone or at a branch (if you’re based in Scotland)
- wait to hear whether your application has been approved
Review methodology
At NerdWallet UK, we base our reviews and our ‘Best’ pages on the results of surveys we undertook about what was important to people who use these products. This allows us to look at products impartially of any commercial arrangements we have and fairly rate the products on the same set of criteria.
Best means our ‘Best’ and is based only on what products we have aligned to our surveys, which form the basis of our reviews and ratings. This means that there will be other products on the market that we have not included in our ‘Best’ pages. Best does not mean it’s best for you, nor does it mean the ‘cheapest’.
Our reviews may display lenders’ rates. This additional information has not been included in our evaluations but is still very important when choosing a product. Rates offered can depend on circumstances, amount and term. Always check details before proceeding with any financial product.
Product details reflect the information that was available at that time but may have changed since. We strive to give you a review on as many products as possible, but there will be products not included on the market. The review is our opinion, but it does not constitute advice, recommendation or suitability for your financial circumstances.
While we try to provide you with accurate information, the providers can change the terms of their products at any time, therefore it is advisable to check the terms before you proceed.
You can view our full review methodology here.
Services offered by this provider may change over time. Always check Ts&Cs.