The Business Banking ExpertUK business accounts, reviewed

Head to head

Allica vs OakNorth

The two best returns on business cash in the UK, and they are nothing alike. One pays 2.83% from the first pound with instant access. The other pays 3.65% — or zero, depending on a threshold most people never see.

The short answer

Better for most
Al

Allica Bank

2.83% AER on a free account with instant access and no notice period, plus cashback and a relationship manager. Established businesses only, but the bar is far lower than OakNorth’s.

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Better above £50,000
On

OakNorth Bank

Up to 3.65% on notice and 4.25% fixed — but only above £50,000. Below that the notice accounts pay 0.00% and you are limited to 2.35% easy access.

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Side by side

 AllicaOakNorth
Our score4.0 / 54.0 / 5
Instant access rate2.83% AER from £12.35% AER from £1
Best rate3.33% with boosts3.65% notice · 4.25% fixed
Minimum for the best rateMinimum balance conditions£50,000
Rate below £50,0002.83%0.00% on notice accounts
Access on the headline rateInstant125 days’ notice, or fixed term
EligibilityEstablished businessesTurnover £1m+, or £50,000 to deposit
Monthly account fee£0Not published
Payment chargesFreeFree, including CHAPS
Cash depositsLimitedNot supported
Deposit protectionFSCS to £120,000, standalone licenceFSCS to £120,000, standalone licence

Verify all figures against each provider's own pricing page before relying on them.

The decision in one paragraph

Allica for almost everybody. 2.83% AER from the first pound, instant access, no notice, no threshold, on a free account. OakNorth only wins if you hold £50,000 or more and can give up access for four months — at which point it wins clearly.

The £50,000 threshold decides this

OakNorth advertises 3.20% at 30 days’ notice, 3.60% at 95 days and 3.65% at 125 days. Every one of those requires a balance of £50,000 or more. Beneath that, the notice accounts pay 0.00% AER — not a reduced rate, nothing at all. Fixed term carries the same minimum.

What OakNorth does offer below the threshold is an Easy Access account at 2.35% from £1. Competitive, and still behind Allica.

On £25,000, this is not close Allica pays £708 a year on £25,000 with instant access. OakNorth’s Easy Access pays £588. OakNorth’s headline 3.65% pays nothing, because £25,000 is below the threshold. The rate that gets advertised is not the rate most businesses can reach.

Eligibility is the second filter

OakNorth requires turnover above £1m, or £50,000 to deposit. That is the narrowest bar of any UK business account we cover. A sole trader or a young company will not qualify however attractive the rate.

Allica requires an established business — a genuine constraint, and a start-up will not qualify — but the door is considerably wider.

Where OakNorth is genuinely better

Above £50,000 with a known payment date, OakNorth wins outright. A corporation tax reserve due in four months earns 3.65% at 125 days’ notice against Allica’s 2.83% instant. On £100,000 that is £3,650 against £2,830.

Free CHAPS. OakNorth charges nothing on Faster Payments, Bacs or CHAPS. Free CHAPS is close to unheard of and, for a business making large payments, can outweigh a monthly fee elsewhere.

Multi-entity management under a single login, which matters for groups.

Read the boosts on Allica too

Allica’s advertised headline combines a 2.83% standard rate with boosts for transfer activity, switching and new deposits, all at once. Very few businesses hold every boost permanently. Work out which you would genuinely qualify for month after month and price the account on that, not on the marketing figure.

So which?

  • Under £50,000: Allica. OakNorth’s headline rates are unavailable to you.
  • Need instant access: Allica, comfortably.
  • Over £50,000 with a fixed date: OakNorth.
  • Turnover under £1m and less than £50,000 to deposit: Allica — you do not qualify for OakNorth.
  • Making large CHAPS payments: OakNorth, where they are free.
  • A start-up: neither. See best accounts for start-ups.

Common questions

Which pays more, Allica or OakNorth?

Below £50,000, Allica — 2.83% AER instant access against OakNorth’s 2.35% easy access, since OakNorth’s notice accounts pay 0.00% beneath that threshold. Above £50,000 with a notice period, OakNorth pays more at 3.65%.

Why does OakNorth pay 0% below £50,000?

Its notice and fixed term accounts carry a £50,000 minimum balance. Beneath it the rate is 0.00% AER rather than reduced. The Easy Access account at 2.35% from £1 is the only OakNorth product available below the threshold.

Can a sole trader open either account?

Neither is aimed at sole traders. OakNorth requires turnover above £1m or £50,000 to deposit. Allica requires an established business. A sole trader or start-up should look at Monzo, Mettle or Virgin Money instead.

Are both FSCS protected?

Yes, both to £120,000, and both hold standalone banking licences — so neither limit is shared with another brand, unlike Mettle with NatWest or Virgin Money with Nationwide.