Allica interest and cashback

What it is

The Allica Business Rewards Account pays interest on your balance and cashback on card spend, with no monthly account fee and a dedicated relationship manager. On our modelling it produces the highest net return of any account in the comparison — around £833 a year on a £25,000 balance, against zero from Starling.

How it actually works

• A standard rate of 2.83% AER, with a minimum balance condition.
• Boosts on top: for making a minimum number of outbound transfers each month, for switching your main account, and a time-limited welcome boost for new deposits.
• Cashback on eligible card spend.
• A relationship manager, which is unusual on a free account.
• Instant access — this is not a notice or fixed-term product.

Who it genuinely helps

• Established SMEs holding meaningful working capital or a corporation tax reserve, where interest outweighs every fee comparison.
• Businesses with steady outbound payment volume that qualify for the activity boost month after month.
• Companies that want a relationship manager without high-street pricing.

Where it falls short

• Established businesses only. A new sole trader or freshly incorporated company will not qualify.
• Minimum balance conditions apply to the best rates.
• Cash handling is limited, which rules it out as a primary account for retail or hospitality.
• Not in the CMA service survey, being below the size threshold, so there is no independent service evidence.
• Narrow eligibility overall — it scores lowest of any FSCS-protected account on that measure in our ranking.

What else does this

Monzo pays 1.30% on its free tiers and up to 3.25% on Team at £25 a month. Open to far more businesses, but you pay £300 a year to reach the top rate.

Virgin Money’s Business Access Savings Account can be opened without holding its current account — unusual, and worth checking if you want a home for a reserve without switching.

Mettle pays 1.46% free with no eligibility hurdles beyond its own narrow scope.

Starling pays nothing at all on business balances, which on a large reserve is the most expensive option here despite being free.

Our verdict

The most financially valuable feature in this comparison, and hard to get. Business current accounts overwhelmingly pay nothing, and most businesses have simply accepted that. Allica has built its proposition on the observation that established SMEs sit on real balances and nobody was paying them.

For a company holding £50,000 of working capital and tax reserve, this is worth more than every other feature on this site combined. It reframes the whole comparison from “which costs least” to “which pays most”.

Two cautions. Read the boost construction rather than the headline. And do not assume eligibility — this is aimed at established businesses, and a start-up should look at Monzo or Mettle and revisit Allica once trading history allows.

Read our full Allica Bank review →