Business Bank Accounts from Santander

If you're starting or have a new business and need a bank account, then the award winning Santander start-up accounts for businesses with a turnover of less than £250,000 could be for you.

Start-up Extra Business Current Account

Santander logoThe Start-up Extra accounts are an extension of the old Alliance and Leicester products and feature free and unlimited daily banking for up to 18 months.

  • 12 months or 18 months free banking if you have a Santander personal account.
  • Telephone and online banking.
  • Complimentary access to a local business manager for expert advice.
  • Access to online start-up guides.
  • The convenience of accessing the Post Office branch network.

The Monthly Fee-Based Accounts

Once your introductory period has completed, you'll be placed onto one of the monthly fee-based accounts. For each type you'll receive:

  • Completely fee free banking forever.
  • Free internet and telephone banking.
  • Nominal monthly fee covers all charges.

An Overview of the Santander Business Current Accounts

With the new nominal monthly fee, you can safely budget your banking each month without any nasty surprises. You can apply for this account online in a matter of minutes. Here's a summary of what's on offer for current customers and those switching with turnovers up to £1 million:

For existing Customers

  • Free business banking for life subject to various limits.
  • Nominal monthly fees (between £7.50 and £20).
  • Includes a debit card.
  • Internet and telephone account access.
  • Cheque book and regular statements.
  • Overdrafts are available at 5.9% above base rate.
  • Interest paid on savings balances.

For Businesses Switching Accounts

  • Free day to day transactions subject to limits.
  • Fee free overdraft for a year matched to your current arrangements for the first year.
  • Manage your account online.
  • Internet and telephone account access.

The Santander welcome screen
The welcome screen after you log into your account.

Your Santander statement screen
Transactions on your statement screen.

There are some transactional limits on this offer, although no such limits existed with the previous Alliance and Leicester product.

  • All daily transactions are included except for cash deposits covered by a monthly fee as follows:
  • £7.50 monthly fee with free cash deposits of £1,000, then 50p per £100.
  • £12.50 monthly fee with free cash deposits of £3,000, then 50p per £100.
  • £20.00 monthly fee with free cash deposits of £5,000, then 50p per £100.
  • There are no limits on credits via BACS, debit card payments, direct debits, standing orders, bill payments and transfers between your accounts.

Other Business Savings Accounts

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

  • The Business Direct Saver account pays 0.25% on balances up to £9,999 and 1.00% on deposits over £10,000. The Saver account provides instant access with no penalties for withdrawing monies. You can deposit up to £2 million into this account.
  • The fixed rate business bond 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

There are also 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 three 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

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

More information on these products can be found here: http://www.santander.co.uk/uk/business.