Provider review
Co-operative Bank Business
One of the few high-street banks offering business banking with no monthly account fee — paired with the market’s most expensive cash handling and a published ethical policy that genuinely constrains who it will bank.
Who holds your money
The Co-operative Bank p.l.c., 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, shared with smile, which operates on the same licence.
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.
Outside the published top five on every measure in the CMA survey.
Straightforward, with an Ethical Policy that is genuinely applied rather than decorative.
FSCS to £120,000, shared with smile.
No monthly account fee on Business Directplus, but cash handling at around 1.5% is the highest we record.
1.06% AER with no plan fee to reach it, worth about £265 a year on £25,000.
Cash handling at around 1.5% is the most expensive we record, which cancels out the free monthly fee for anyone taking notes.
Its Ethical Policy excludes some sectors outright. Check before applying if yours is near the boundary.
Weighted total 3.3 / 5. Weightings published on how we rate.
Service quality evidence
| Overall service quality | Joint 13th, 56% |
| Online and mobile banking | 17th, 49% |
| Relationship management | 8th, 61% |
Independent survey of around 1,200 SME customers a year per provider, conducted by BVA BDRC (now part of Ipsos) and published by the CMA in August 2026. All 17 surveyed providers are ranked; a provider shows as not ranked only where it does not offer the service or fewer than 100 of its customers gave an eligible score.
Interest on balances
Verified from provider site| Rate on the free tier | 1.06% |
| Best sustainable rate | 1.06% |
| Extra cost to reach it | None |
| Access | Instant access |
| Net on £25,000 | £265 |
Business Instant Access pays 1.06% AER. Business Plus Instant Access pays 1.38% AER but requires the Business Bank Account Plus, which carries a monthly fee. Notice accounts pay 1.56% (35 day) and 1.94% (95 day); fixed term pays 3.43% AER over six months from a £10,000 minimum. Note you must already hold a Co-operative Bank business account before you can open any savings account — unlike Virgin Money. Verified against co-operativebank.co.uk, 5 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
The Co-operative Bank is unusual on the high street in offering business banking with no monthly account fee on its Business Directplus account, subject to turnover and transaction conditions. For a small business banking electronically that is a genuine saving against Barclays at £8.50 or Santander at £9.99.
The catch is cash. At around 1.5% the Co-operative Bank has the most expensive cash handling of any provider we track — a business paying in £1,000 pays roughly £15, against £12 at Barclays and £8.50 at a Lloyds machine. If you take notes and coins, the free monthly fee is quickly cancelled out.
Its Ethical Policy is a real differentiator rather than marketing. The bank declines business from sectors that conflict with it, which some businesses will value and others will find restrictive. Read it before applying if your sector is anywhere near the boundaries.
Service sits outside the CMA published top five on every measure. The account is competent rather than distinguished, and the case for it is the fee structure and the ethics, not the experience.
Who it suits
- Small businesses banking electronically, where no monthly fee is a real saving.
- Charities, community groups and co-operatives, which the bank has historically served well.
- Businesses for whom the Ethical Policy matters — it is genuinely applied, not decorative.
Who should look elsewhere
- Cash-taking businesses. At around 1.5% this is the most expensive cash handling we record.
- Businesses in sectors the Ethical Policy excludes. Check before you apply.
- Anyone prioritising service quality — outside the CMA top five on every measure.
Every tier, priced
What each plan includes, and what the step up actually costs over a year.
| Plan | Monthly | Per year |
|---|---|---|
| Business DirectplusFree day-to-day banking subject to turnover and transaction conditions, online and mobile banking, debit card, and access to overdrafts and lending on application. Cash handling charged separately. | £0 | £0 |
| Business Bank Account PlusAdds the Business Plus Instant Access savings account paying 1.38% AER, against 1.06% on the standard instant access account. | Monthly fee applies | Verify current tariff |
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 on Business Directplus, subject to conditions | Small businesses banking electronically. |
| Cash handling | Around 1.5% | Cash-taking businesses — the highest rate we record. |
| Electronic payments | Free within the account conditions | Businesses paid by transfer. |
| Cheques | Per item — rate not yet verified | Anyone paid by cheque. Needs verification. |
| Savings, instant access | 1.06% AER, or 1.38% with Business Bank Account Plus | Businesses holding a reserve. |
| Notice savings | 1.56% at 35 days, 1.94% at 95 days | Reserves with a known date. |
Applying
You must already hold a Co-operative Bank business current account before you can open any of its business savings accounts — unlike Virgin Money, whose savings account is standalone.
Expect the standard documentation, plus a check against the bank’s Ethical Policy where your sector is relevant.
Where applications fail
- Sectors excluded by the Ethical Policy — the bank publishes what it will not finance and applies it.
- Companies House mismatch — standard requirement.
- Turnover above the free banking threshold — moves you off the free tariff rather than causing a decline.
Alternatives worth costing
- Barclays Business — Cheaper cash handling and a far larger branch network.
- Starling Business — Also free, better rated, and cheaper on cash.
- Virgin Money — 25 months free, and a standalone savings account paying 3.50%.
- Monzo Business — First in the UK for service, and pays interest from the free tier.
Co-operative Bank questions
Is the Co-operative Bank business account free?
The Business Directplus account has no monthly account fee, subject to turnover and transaction conditions. Cash handling is charged separately at around 1.5%, which is the highest rate we record.
What interest does the Co-operative Bank pay on business savings?
1.06% AER on Business Instant Access. Business Plus Instant Access pays 1.38% but requires the Business Bank Account Plus, which carries a monthly fee. Notice accounts pay 1.56% at 35 days and 1.94% at 95 days.
Can I open Co-operative Bank business savings without a current account?
No. You must already hold a Co-operative Bank business current account. Virgin Money is the notable exception in the market, offering a standalone business savings account.
Is the Co-operative Bank FSCS protected?
Yes, up to £120,000 per eligible depositor. The limit is shared with smile, which operates on the same banking licence.