Santander Business Bank Account

Get Free Business Banking for Life

The new UK Santander Bank offers free business banking forever which is the account taken from the old Abbey Group.

With Santander the only method of opening an account is over the telephone but you can apply online for the Alliance and Leicester free business bank account which also gives your business free business banking forever with no catches.

An Overview of the Santander Business Current Account

Santander business banking logo

There are two main offers from Satander, one for switchers and one for existing customers. Most terms are exactly the same in that you get a fee free business bank account but for switchers they entice you with a huge 6.0% interest rate on your savings for the first year (up to £2,500) which is the highest rate in the market place.

Here's a summary of what Santander offer on for current customers and those switching for turnovers up to £1 million :

For existing Santander Customers

  • Free business banking for life subject to limits below
  • No monthly fees
  • Includes a debit card
  • Free internet banking
  • Free telephone banking
  • Cheque book and regular statements
  • Overdraft available at 5.9% above base rate
  • 0.10% interest paid on savings

For Businesses Switching to Santander

  • Free day to day business banking subject to limits below
  • 6% AER interest on savings for a year then 1.0% AER
  • Fee free overdraft for a year matched to your current arrangements for the first year
  • Manage your account online
  • Free internet banking
  • Free telephone banking

There are some limits on this free banking offer although there are no such limits when you take an account with Alliance and Leicester (although the same limits apply for cash deposits as with Santander below).

  • Up to 100 cheques can be deposited each month for free then it's 50p/ cheque
  • Up to £3,000 in cash can be deposited each month then it's 50p per £500
  • Up to 100 cheque and cash withdrawals can be made each month then it's 50p per item
  • There are no limits on credits via BACS, debit card payments, direct debits, standing orders, bill payments and transfers between your accounts.

Other Santander Business Savings Accounts

Santander offer various levels of interest for business savings but the rates are low because of the low base rate. There are two main accounts for deposits and savings as follows:

  • Santander business direct saver account - that pays 0.25% on balances up to £9,999 and 1.00% on deposits of £10,000 and more. This is an instant access account and there are no penalties for withdrawing and you can deposit up to £2 million
  • Fixed rate business bond that pays 2.30% interest on balances of £50,000 to £2 million where you lock the amount away for at least one year. Interest is paid when the bond matures and there are penalties for early withdrawal.

Other Santander Business Banking Services

Santander also offer various other business services as follows:

  • Commercial mortgages where you can borrow from £25,000 to £1 million to buy premises or expand your business. You can choose between variable and fixed interest rates and have a decision normally within 3 days.
  • Vehicle finance for the purchase of new and used vehicles for business purposes
  • Business insurance offered in conjunction with AXA insurance
  • Relationship managers to help you develop your business
  • Merchant services for accepting credit and debit card payments either at your premises or online over the internet.

More About Santander Bank

The Santander Bank is a Spannish bank originally founded in 1857 and in the UK aquired Abbey in 2004, Bradford and Bingley branch network in 2008 and Alliance and Leicester in the same year. Since then Santander is slowly rebranding the first two acquisitions. They are currently the second largest mortgage lender in the UK.