As a business owner, choosing a bank is a critical decision. A bank’s services can significantly impact your business operations, growth potential, and financial management. With the UK home to numerous reputable banks, it can be challenging to navigate your options. In this article, we will focus on two highly regarded banks, TSB vs HSBC, providing an in-depth comparison to assist you in making an informed decision.
TSB vs HSBC
| Features | TSB | HSBC |
|---|---|---|
| Business Current Account | Available with tailored options for different business sizes | Offered with a wide range of customisable features |
| Business Savings Account | Available with competitive interest rates | Available with tiered interest rates for higher balances |
| Business Credit Card | Offers cashback on purchases | Offers rewards points on purchases |
| Overdraft Facility | Provided with a predefined limit | Offered with customisable limits based on credit history |
| Business Loans | Range of options with competitive interest rates | Extensive loan options including trade and equipment financing |
| Online Banking | User-friendly platform with robust features | Comprehensive platform with advanced features |
| Mobile Banking | Full-service mobile app available | Full-service mobile app with additional features |
| Invoice Financing | Offered with flexible repayment terms | Offered with customizable terms |
| Business Insurance | Range of options tailored to business needs | Extensive coverage options |
| International Payments | Available with competitive exchange rates | Available with wide global reach |
| 24/7 Customer Support | Customer support during business hours | Round-the-clock customer support |
| Branch Accessibility | High accessibility in the UK | High accessibility worldwide |
| Dedicated Business Manager | Available for businesses with higher transaction volume | Available for all business accounts |
| Deposit Machine Availability | Available at most branches | Wide availability at branches and partner locations |
| Cashback Offers | Available on business credit cards | Available on select accounts and services |
| Currency Exchange Services | Available with competitive rates | Comprehensive services with competitive rates |
| Trade Financing | Not offered | Wide range of trade financing options |
| Asset Finance | Available with competitive rates | Extensive options with flexible terms |
| Business Training and Advisory Services | Not offered | Available with industry-specific advice |
| Market Insight Reports | Not offered | Regularly published for all business customers |
| Green Financing Options | Available for sustainable business practices | Broad range of options for green initiatives |
 | 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 is a popular banking choice for UK businesses, known for its customer-friendly approach and comprehensive business services. It has a substantial branch network and offers a range of products tailored to meet different business needs.
Pros and cons
Pros
- TSB has an extensive range of financial products, covering most business needs.
- They provide a high level of customer service, with dedicated business managers for business accounts.
- TSB offers a robust online and mobile banking platform, which is intuitive and easy to use.
- They offer attractive cashback offers to businesses on their purchases.
- TSB’s green financing options allow businesses to invest in sustainable practices.
Cons
- TSB does not offer 24/7 customer support.
- Their deposit machine availability is lower compared to other banks.
- TSB does not provide trade financing, which could be a limiting factor for businesses involved in international trade.
- Lack of business training and advisory services and market insight reports.
Table of fees and charges
| Service | Details |
|---|---|
| Current Accounts | £5 per month, waived if balance stays above £10,000. 25 months’ free banking for switchers if they stay within the terms of their account. |
| Savings Account | Easy Access Savings Account with interest rates of 0.30% Gross/AER (variable) on balances of £5,000 plus. If balance falls below £4,999, interest rates drop to 0.05% Gross/AER. |
| Overdrafts | Charged at 10.65% EAR for overdrafts above £7,000. Arrangement fee of £100-250, depending on the terms, amount, and length. |
| Business Finance and Loans | Borrow between £1,000 and £100,000, repay over 1-25 years or up to £25,000 as an unsecured loan. Interest rates are 9.94% APR (fixed). Arrangement fee of £100-250, depending on the terms, amount, and length of the loan. |
TSB’s fees and charges are dependent on the specific account type and service and can be found on their website or by contacting TSB directly.
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Unique and standout features
TSB’s approach to business banking is centered around the customer.
Their range of business accounts allows businesses to choose an account that closely matches their needs.
The bank’s mobile and online banking platforms stand out for their user-friendly design, helping businesses manage their finances efficiently.
Additionally, their green financing options make them an excellent choice for businesses looking to invest in sustainable initiatives.
HSBC
HSBC is a global banking giant with a solid reputation for its comprehensive suite of business banking services. With its extensive network and innovative banking solutions, it has become a preferred choice for businesses of all sizes.
Pros and cons
Pros
- HSBC offers a full suite of business services, including unique ones such as trade financing and market insight reports.
- They provide 24/7 customer support, ensuring businesses can get help when needed.
- Their international presence and services make HSBC an excellent choice for businesses with global operations.
- HSBC’s business training and advisory services are beneficial for businesses seeking growth and expansion.
- The bank’s deposit machine availability is high, making cash handling easier for businesses.
Cons
- HSBC’s business banking services can be more complex due to their extensive product range.
- Some customers report slower customer service responses compared to other banks.
- Some of their services, like trade financing, may not be necessary for smaller businesses, making them a costlier option.
Table of fees and charges
| Service | Details |
|---|---|
| Current Accounts | £6.50 per month. Extra charges for transfers and withdrawals. Account reviewed every 12 months. |
| Kinetic Account | No monthly account fee for the first 12 months. Designed for sole traders or single director shareholder business. |
| Overdrafts | Arranged for 1-12 months and reviewed every year. Interest calculated daily and only charged on the amount used. Arrangement fee will be agreed when the overdraft is approved. |
| Business Finance and Loans | Borrow £1,000-25,000 with fixed interest rates. Can also borrow £25k + over 12 months to 20 years, with either fixed or flexible interest rates. Other finance products available, including commercial mortgages, asset finance, an international business overdraft, and the Business Growth Fund. |
HSBC’s fees and charges are dependent on the specific account type and service and can be found on their website or by contacting HSBC directly.
Unique and standout features
HSBC is known for its global reach and extensive services.
Its trade financing and business advisory services set it apart from many other banks.
Furthermore, HSBC’s focus on providing market insights and reports can be incredibly valuable for businesses looking to stay ahead in their industry.
Conclusion – TSB vs HSBC
Choosing between TSB and HSBC for business banking is a decision dependent on your business’s unique needs.
Both banks offer comprehensive services but have distinct strengths.
TSB is known for its customer-centric approach, user-friendly platforms, and green financing options.
On the other hand, HSBC stands out with its 24/7 customer support, global reach, and unique services like trade financing and business advisory services.
FAQ
- Which bank is better for small businesses, TSB or HSBC? Both banks offer solid options for small businesses. Your choice should depend on your specific needs, like whether you require international services or prefer a more localised, customer-centric approach.
- Do TSB and HSBC offer accounts for start-ups? Yes, both banks offer tailored accounts for start-ups with specific benefits, including initial fee-free periods. Check their websites for more details.
- Do these banks offer digital banking solutions? Yes, both TSB and HSBC have robust online and mobile banking platforms for businesses to manage their accounts remotely and efficiently.
- Are there green financing options available? Yes, both TSB and HSBC offer green financing options, encouraging businesses to invest in sustainable practices.
- What customer support options do TSB and HSBC offer? Both banks provide phone and online customer support, with HSBC offering a 24/7 service, unlike TSB.
- What training or advisory services are available? HSBC offers business training and advisory services, including seminars and market insight reports. TSB currently does not provide such services.