Head to head
Lloyds vs NatWest Business
Two high-street business accounts with similar pricing and one large difference: NatWest gives you FreeAgent free, and Lloyds pays the lowest savings rate we track anywhere.
The short answer
NatWest Business
Free FreeAgent across the range, joint fourth in the CMA survey for online banking, and better savings than Lloyds at every level. Ask whether Mettle covers you first — it is the same bank for nothing.
Lloyds Business
Cheaper cash handling at a paying-in machine than most of the high street. But its instant access savings rate of 0.50% is the lowest of any provider we track.
Side by side
| NatWest | Lloyds | |
|---|---|---|
| Our score | 3.7 / 5 | 3.6 / 5 |
| CMA online and mobile banking | Joint 4th, 74% | Outside top five |
| Free banking period | Introductory period | 12 months |
| Instant access savings | 1.11% – 1.71% | 0.50% – 1.21% |
| Notice savings | 2.00% at 35 days · 2.50% at 95 days | 1.87% – 2.66%, £10,000 minimum |
| Cash deposits | Per £100 | £0.85 machine · £1.50 counter |
| Free accounting software | FreeAgent, free | Business Finance Assistant |
| Branches | Yes | Yes |
| Deposit protection | FSCS £120,000, shared with RBS, Ulster and Mettle | FSCS £120,000, shared with Bank of Scotland and Halifax |
Verify all figures against each provider's own pricing page before relying on them.
The decision in one paragraph
NatWest, on the evidence. It includes a full FreeAgent subscription free, places joint fourth in the CMA-mandated survey for online banking where Lloyds places outside the top five, and pays more on savings at every level. Lloyds wins on one thing: cash deposited at a machine.
The savings gap is the largest single difference
Lloyds’ instant access account pays 0.50% to 1.21% AER tiered by balance — the lowest instant rate of any provider we track, anywhere. NatWest pays 1.11% to 1.71% on Business Reserve.
On a £25,000 reserve that is roughly £125 a year at Lloyds against £278 at NatWest. Neither is good: Virgin Money pays 3.50% on an account you can open without switching your banking at all.
The cash question
Lloyds charges roughly £0.85 per £100 at a paying-in machine and around £1.50 over the counter — nearly double for the same money. Almost nobody notices this when choosing, and for a business banking £2,000 a week it is worth hundreds of pounds a year.
Before choosing Lloyds on cost, confirm your branch actually has a machine that accepts your deposit type. A theoretically cheap rate you cannot use is not cheap.
FreeAgent is worth more than it looks
NatWest includes a full FreeAgent subscription across its business range. That is a recognised Making Tax Digital package handling digital records, quarterly updates and VAT — a real annual cost removed at a moment when MTD for Income Tax is catching more sole traders each year.
Lloyds offers Business Finance Assistant, which is competent but is not a full accounting package.
Before choosing NatWest, look at Mettle
Mettle is a NatWest Group product. It is permanently free, includes the same FreeAgent subscription, pays 1.46% on savings, and placed second in the CMA survey — far above NatWest itself. If you do not need cheques, international payments, an overdraft or a branch, Mettle is the same bank for nothing. See Mettle vs Starling.
Watch the shared FSCS limits
Protection is £120,000 per authorised firm, not per brand. NatWest shares one limit with RBS, Ulster Bank and Mettle. Lloyds shares with Bank of Scotland and Halifax. If you hold a personal account at any of those, it comes out of the same allowance. See who actually holds your money.
Common questions
Is NatWest or Lloyds better for business?
NatWest on most measures — free FreeAgent, joint fourth in the CMA survey for online banking, and better savings rates at every level. Lloyds is cheaper for cash deposited at a paying-in machine.
What savings rate does Lloyds pay on business accounts?
0.50% to 1.21% AER on instant access, tiered by balance — the lowest instant access rate of any provider we track. Notice accounts pay 1.87% to 2.66% but require a £10,000 minimum.
Is Lloyds cash handling cheaper at a machine?
Yes, substantially. Roughly £0.85 per £100 at a paying-in machine against around £1.50 over the counter. Confirm your branch has a machine that accepts your deposit type before choosing on that basis.
Do NatWest and Mettle share an FSCS limit?
Yes. Mettle is a trading name of National Westminster Bank plc, so the £120,000 limit is shared across NatWest, RBS, Ulster Bank and Mettle rather than being additional.