Provider review
Allica Bank Business
The rare business account that pays you rather than charging you — provided your business is established enough to qualify.
Who holds your money
Allica Bank Limited, holder of a full UK banking licence, authorised by the PRA and regulated by the FCA and PRA.
Eligible deposits protected up to £120,000 per eligible depositor.
Verify the firm reference number on the FCA Financial Services Register before relying on this.
Scorecard
Seven criteria, each weighted. Every score below says what drove it.
Below the size threshold for the CMA-mandated survey, so there is no independent service data. This score rests on public review platforms alone and should carry less weight than a surveyed provider’s.
Relationship management and lending alongside the account, which is rare at this price.
FSCS to £120,000 on a standalone licence, not shared with any other brand.
No monthly fee, and no charges on the things most accounts charge for.
2.83% on the free tier, rising to 3.33%. Net return on £25,000 is about £833.
Limited cash handling, which is the main gap in an otherwise strong account.
Established businesses only. A start-up will not qualify however good the proposition.
Weighted total 4.0 / 5. Weightings published on how we rate.
Service quality evidence
This provider is not included in the CMA's independent business banking survey, which covers the 17 largest business current account providers. Its service score is drawn from public review platforms only, which is a weaker evidence base than a regulator-mandated survey.
Interest on balances
Verified from provider site| Rate on the free tier | 2.83% |
| Best sustainable rate | 3.33% |
| Extra cost to reach it | None |
| Access | Instant access |
| Net on £25,000 | £833 |
Standard rate of 2.83% AER (minimum balance applies), with boosts for monthly transfer activity and for switching. The advertised headline assumes every boost at once — model the rate you would actually hold. Verified against allica.bank, 4 August 2026.
Affiliate note
Where we hold a commercial arrangement with a provider, this box says so and every link on the page is marked. Commission never affects the score or the ranking.
Fees are checked against the provider’s published tariff. If a page has not been re-checked within 60 days, it says so at the top.
The verdict
Allica has built its proposition around a fact most business accounts ignore: established SMEs often sit on meaningful balances, and most business current accounts pay nothing on them. Allica's Business Rewards Account pays interest on the balance and cashback on card spend, with no monthly account fee, plus access to a relationship manager — a combination that is genuinely unusual.
For a company holding, say, £80,000 of working capital and a corporation tax reserve, the interest alone can be worth more in a year than every fee a high-street account would charge. That reframes the whole comparison. Instead of asking which account costs least, you start asking which one pays most.
The rate is typically constructed from a base rate plus boosts for things like making a minimum number of outbound transfers each month, completing a switch, or depositing a large sum as a new customer. Read the construction, not the headline, because the top advertised rate usually assumes you qualify for every boost simultaneously.
The limits are eligibility and cash. Allica is aimed at established businesses rather than start-ups, minimum balance conditions apply to the best rates, and cash handling is limited. A new sole trader will not qualify, and a café cannot use it as a main account.
Who it suits
- Established SMEs holding significant balances where interest outweighs any fee comparison.
- Businesses that want a relationship manager without high-street pricing.
- Companies with steady outbound payment volumes that qualify for the activity boosts.
Who should look elsewhere
- Start-ups and new sole traders. Eligibility is aimed at established businesses.
- Cash-handling businesses. Cash facilities are limited.
- Businesses running low balances. The core benefit does not apply to you.
Every tier, priced
What each plan includes, and what the step up actually costs over a year.
| Plan | Monthly | Per year |
|---|---|---|
| Business Rewards AccountInterest on balances, cashback on card spend, dedicated relationship manager, free electronic payments, accounting integrations. Minimum balance and activity conditions apply to the best rates. | £0, eligibility applies | £0 |
Pricing must be verified against the provider's own site before publication. Providers reprice without notice.
The fees that are not in the headline
The monthly fee is what gets advertised. These are the charges that decide what you actually pay.
| Charge | Cost | Who it affects |
|---|---|---|
| Monthly account fee | £0, subject to eligibility | Established businesses meeting the criteria. |
| Interest on balances | Paid, rate constructed from base plus boosts | Businesses holding meaningful working capital or tax reserves. |
| Cashback on card spend | Percentage of eligible spend | Businesses with material card expenditure. |
| Electronic payments | Free | Everyone. |
| Cash handling | Limited | Rules the account out as a primary account for retail and hospitality. |
Applying
Allica onboards established businesses rather than start-ups, and the process reflects that — expect questions about trading history, turnover and the nature of the business, and expect to speak to someone.
Have your accounts, Companies House record and ownership structure straight before you begin. This is a relationship bank, and the application is closer to a conversation than a form.
Where applications fail
- Insufficient trading history — the account is designed for established businesses.
- Turnover below threshold — eligibility criteria apply.
- Complex or opaque ownership — expect detailed questions about beneficial ownership.
- Sector appetite — standard exclusions apply.
Alternatives worth costing
- Starling Business — Free and open to everyone, but pays nothing on balances.
- Barclays Business — Better for cash handling and traditional lending.
- NatWest Business — Full-service alternative with FreeAgent included.
Allica Bank questions
Does Allica Bank pay interest on business accounts?
Yes. The Business Rewards Account pays interest on balances, with the rate typically built from a standard rate plus boosts for transfer activity, switching and new-customer deposits. Model the rate you would realistically hold rather than the headline.
Is Allica Bank FSCS protected?
Yes. Allica holds a full UK banking licence, so eligible deposits are protected up to £120,000 per eligible depositor.
Can a start-up open an Allica account?
Generally no. Allica targets established SMEs, and eligibility criteria around trading history and turnover apply. A new business should look at Starling or Mettle first and revisit Allica once established.
Can I handle cash with Allica?
Cash facilities are limited, which rules the account out as a primary account for retail or hospitality. Some businesses hold Allica alongside a high-street account for exactly this reason.