When it comes to business banking, the choice of bank can greatly impact your business operations, ease of banking, and costs. Two notable contenders in the UK business banking market are TSB vs Bank of Scotland. Both banks have rich histories, competitive services, and different strengths, making the decision challenging.
This article aims to provide a comprehensive comparison between these two banks, focusing on their services, fees, and unique features.
TSB vs Bank of Scotland
| Features | TSB | Bank of Scotland |
|---|---|---|
| Business Current Account | Available with 25 months free banking for new customers | Available with 18 months free banking for new customers |
| Business Savings Account | Range of fixed and instant access accounts | Range of fixed and instant access accounts |
| Business Loans | Range from £1,000 to £25,000 | Range from £1,000 to £50,000 |
| Business Credit Cards | Available with various rewards and benefits | Available with various rewards and benefits |
| Overdraft Facility | Subject to approval, rates vary | Subject to approval, rates vary |
| International Trade Services | Services for importers and exporters | Services for importers and exporters |
| Online Banking | Full suite of online banking services | Full suite of online banking services |
| Mobile Banking | Dedicated business banking app | Business banking through standard banking app |
| Cash Flow Forecasting Tools | Not Available | Provided as part of online banking suite |
| Invoice Financing | Custom solutions available | Custom solutions available |
| Asset Financing | Variety of asset finance options available | Variety of asset finance options available |
| Merchant Services | Partnered with Cardnet® for card payment solutions | Partnered with Worldpay for card payment solutions |
| 24/7 Customer Support | Available via phone and online chat | Customer support available during business hours |
| Relationship Managers | Provided for larger businesses | Provided for larger businesses |
| Free Business Banking Period | 25 months for new businesses | 18 months for new businesses |
| Interest on In-Credit Balance | Not Available | Provided on selected business current accounts |
| Tailored Business Support | Range of resources and support available | Range of resources and support available |
| High Street Branch Access | Extensive branch network across the UK | Extensive branch network across the UK |
| Financial Health Check Service | Available free to business customers | Available free to business customers |
| Green and Sustainable Lending | Not Available | Range of green and sustainable lending options |
| Dedicated Business Banking App | Full-function business banking app | Business banking through standard banking app |
 | Tide Business Bank Accounts ✓ Free, Plus, or Pro Account ✓ iOS & Android Mobile App ✓ Upload & Auto-Match Receipts Pricing Trial period Contact | |
 | Card One Money ✓ No Credit Checks ✓ Simple Fees ✓ Up To 3.5% Cashback Pricing Trial period Contact | |
 | ANNA Money ✓ Apply In 10 Minutes ✓ Bookkeeping & Payroll Tools ✓ User-Friendly Mobile App Pricing Trial period Contact | |
 | HSBC Business Banking ✓ Business Current Account ✓ In-Branch, Online & App Banking ✓ FSCS Protected Pricing Trial period Contact | |
 | Metro Business Banking ✓ Business Current Account ✓ High Street Presence ✓ FSCS Protected Pricing Trial period Contact | |
 | Mettle Business Banking ✓ Business Bank Account ✓ Online & App ✓ Quick & Easy Application Process Pricing Trial period Contact | |
 | Monzo Business Banking ✓ Business Current Account ✓ Dedicated mobile app experience ✓ FSCS Protected Pricing Trial period Contact | |
 | Virgin Money ✓ Business M Account ✓ In-Store, Online & App Banking ✓ Insights & Forecasting Platform Pricing Trial period Contact |
TSB
TSB, originally Trustee Savings Bank, has a robust presence in the UK business banking sector. It offers an extensive range of services designed to accommodate businesses of all sizes, from start-ups to large corporations.
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Pros and cons
Pros
- TSB offers 25 months of free business banking for new customers, which can substantially reduce banking costs in the early stages.
- Its dedicated business banking app is user-friendly and feature-rich, providing essential banking functions on the go.
- TSB offers 24/7 customer service, which is a boon for businesses requiring support outside traditional banking hours.
- The bank provides bespoke business support and relationship managers for larger businesses needing more personalized assistance.
- They have an extensive network of high-street branches for businesses that prefer in-person banking.
Cons
- TSB doesn’t offer interest on in-credit balances in the business current account.
- The bank doesn’t provide cash flow forecasting tools which could be a drawback for businesses needing in-depth financial analysis.
- TSB doesn’t offer green and sustainable lending products, which could be an issue for environmentally conscious businesses.
Table of fees and charges
| Services | Fees |
|---|---|
| Monthly Account Fee | £5 (after free banking period) |
| Electronic Payments (in/out) | Free |
| Cash Payments (in/out) | 70p per £100 |
| Cheques Issued | 70p per cheque |
| Cheques Paid in | 70p per cheque |
| Direct Debits | Free |
| Standing Orders | Free |
Unique and standout features
TSB’s key standout feature is its extended free banking period of 25 months for new businesses, longer than many competitors.
This provides start-ups and small businesses with a significant cost-saving advantage.
Additionally, TSB’s dedicated business banking app, not universally provided by competitors, delivers robust mobile banking experiences with comprehensive functionality.
Bank of Scotland
The Bank of Scotland, established in 1695, is one of the oldest banks in the UK. It offers a comprehensive range of services for businesses, with a strong emphasis on tailored solutions and innovative digital tools.
Pros and cons
Pros
- The Bank of Scotland offers a comprehensive suite of business banking services, including cash flow forecasting tools, making it easier to manage business finances.
- They offer interest on in-credit balances in the business current account, which can be a nice bonus for businesses.
- The bank has a range of green and sustainable lending options, which aligns with the global push towards more sustainable business practices.
- They offer Relationship Managers who provide one-on-one banking support.
Cons
- Bank of Scotland doesn’t have 24/7 customer support, which could be a challenge for businesses that operate outside standard hours.
- There’s no dedicated business banking app, forcing users to use their standard banking app, which might lack some business-focused features.
- Their free banking period is shorter compared to some competitors like TSB.
Table of fees and charges
| Services | Fees |
|---|---|
| Monthly Account Fee | £6.50 (after free banking period) |
| Electronic Payments (in/out) | Free |
| Cash Payments (in/out) | 65p per £100 |
| Cheques Issued | 65p per cheque |
| Cheques Paid in | 65p per cheque |
| Direct Debits | Free |
| Standing Orders | Free |
Unique and standout features
The Bank of Scotland’s standout feature is its commitment to sustainable business practices, evidenced by its range of green and sustainable lending options. They also offer cash flow forecasting tools, a critical resource for businesses seeking to gain a comprehensive view of their financial health.
Conclusion – TSB vs Bank of Scotland
When choosing between TSB and Bank of Scotland for business banking, businesses should consider their specific needs and priorities.
TSB’s long free banking period and robust mobile app make it appealing to new businesses and those prioritising digital banking.
Conversely, the Bank of Scotland’s comprehensive financial tools and sustainable lending options may be attractive to more established businesses or those prioritising sustainability.
Ultimately, the choice will depend on what features and services are most important to your business.
FAQ
Yes, both TSB and Bank of Scotland offer free business banking for a period. TSB offers it for 25 months, while Bank of Scotland offers it for 18 months.
TSB offers 24/7 customer support, whereas Bank of Scotland does not. However, both banks offer Relationship Managers for personalised assistance.
Only TSB has a dedicated business banking app. Bank of Scotland offers business banking services through their standard banking app.
TSB charges a £5 monthly account fee after the free banking period, while Bank of Scotland charges a £6.50 monthly account fee. There are also additional costs associated with transactions like cash payments and issuing cheques.
Only the Bank of Scotland offers interest on in-credit balances in the business current account.
Only the Bank of Scotland offers green and sustainable lending options.